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Accounting Policies of NCL Industries Ltd. Company

Mar 31, 2015

A) Accounting Concepts

The financial statements are presented on going concern concept and in accordance with Indian Generally Accepted Accounting Principles (GAAP).

b) Fixed Assets and Depreciation

Fixed Assets are stated at the cost of acquisition or construction and putting it to working condition Depreciation on Buildings and Plant & Machinery is charged on straight line method and other assets on Written Down Value method based on the useful lives of the assets, as per Schedule II of the Companies Act 2013 and depreciation on Assets of Energy Division is charged as per Part B of the Schedule II.

Depreciation on fixed assets of Energy Division is provided on straight line method at the rates and in the manner prescribed as per notification no.151 dated 29.03.1994 issued by Ministry of Power (Department of Power).

Consequent to the change, for the year ended 31st March, 2015 depreciation is lower by Rs. 442.47 lakhs. Further, an amount of Rs. 65.80 lakhs (Net of deferred Tax Liability) has been adjusted with the General Reserve in respect of the assets whose balance life is Nil as per transitional provisions of Scedule II.

c) Inventories

i) Raw Materials and other Materials are valued at weighted average cost.

ii) Stores and Spares at Cost

iii) Work - in - Process at cost of material plus labour and other overheads and

iv) Finished Goods at Cost or net realisable value whichever is lower.

d) Employee Benefits

Employee Retirement Benefits being Gratuity and Privilege Leave Encashment are provided on actuarial valuation as envisaged in Accounting Standard 15.

e) Income Tax Expense

Deferred (Income Tax) is provided as envisaged in Accounting Standard 22

f) Foreign Currency Transactions

Loss or gain due to fluctuations in foreign currency exchange rates is recognized as envisaged in Accounting Statndard 11.


Mar 31, 2014

A) Accounting Concepts

The financial statements are presented on going concern concept and in accordance with Indian Generally Accepted Accounting Principle! (GAAP).

b) Fixed Assets and Depreciation

Fixed Assets are stated at the cost of acquisition or construction and putting it to working condition.

Depreciation on Buildings and Plant & Machinery is charged on straight line method and other assets on Written Down Value method, except Assets of Energy Division.

Depreciation on fixed assets of Energy Division is provided on straight line method at the rates and in the manner prescribed as per notification no.151 dated 29.03.1994 issued by Ministry of Power (Department of Power).

c) Inventories

i) Raw Materials and other Materials are valued at weighted average cost.

ii)Stores and Spares at Cost.

iii)Work - in - Process at cost of material plus labour and other overheads and

iv) Finished Goods at Cost or net realisable value whichever is lower.

d) Employee Benefits

Employee Retirement Benefits being Gratuity and Previlege Leave Encashment are provided on actuarial valuation as envisaged in Accounting Standardard 15.

e) Income Tax Expense

Deferred (Income Tax) is provided as envisaged in Accounting Standard 22

f) Foreign Currency Transactions

Loss or gain due to fluctuations in foreign currency exchange rates is recognized as envisaged in Accounting Statndard 11.


Mar 31, 2013

A) Accounting Concepts

The financial statements are presented on going concern concept and in accordance with Indian Generally Accepted Accounting Principles (GAAP).

b) Fixed Assets and Depreciation

Fixed Assets are stated at the cost of acquisition or construction and putting it to working condition.

Depreciation on Buildings and Plant & Machinery is charged on straight line method and other assets on Written Down Value method, except Assets of Energy Division.

Depreciation on Fixed Assets of Energy Division is provided on straight line method at the rates and in the manner prescribed as per notification no.151 dated 29.03.1994 issued by Ministry of Power (Department of Power).

c) Inventories

i) Raw Materials and other Materials are valued at weighted average cost. ii) Stores and Spares at Cost

iii) Work-in-Process at cost of material plus labour and other overheads and iv) Finished Goods at Cost or net realisable value whichever is lower.

d) Employee Benefits

Employee Retirement Benefits being Gratuity and Previlege Leave Encashment are provided on Actuarial Valuation as envisaged in Accounting Standard 15.

e) Income Tax Expense

Deferred (Income Tax) is provided as envisaged in Accounting Standard 22

f) Foreign Currency Transactions

Loss or gain due to fluctuations in foreign currency exchange rates is recognized as envisaged in Accounting Statndard 11.

1. The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of Equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2. For the Year Ended 31st March,2013, the amount of per share dividend recognized as distribution to equity share holders was Re.1/-(31st March 2012: Rs.2/- per share)

3. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

a. Term Loans from the Banks and Finacial Institutions viz. Axis Bank Ltd, Canara Bank, Central Bank of India, Corporation Bank, Indian Renewable Energy Dvelopment Agency Ltd (IREDA), Oriental Bank of Commerce, State Bank of Hyderabad, State Bank of India and State Bank of Mysore are secured by pari passu first charge on all movable and immovable properties of the Company and second charge on current assets of the Company (both present and future) except receivables of Energy Division.

b. Term Loans availed from all Banks and Financial Institutions except Axis Bank are repayble in Quarterly Installments

c. Term Loans availed from Axis Bank are repayble in Monthly Installments.

d. Term Loans carries interest @9% to 14.50% p.a.

e. Vehicle and Equipment Loans from various Banks are secured by Hypothecation of respective assets financed, for a tenure of 35 to 45 months and carries Interest @ 9% to 11% p.a.

f. Represents 8 years Interest free Sales Tax Deferment Loan received from Governmnet of Andhra Pradesh. Repayment commences from March 31, 2013 based on the deferment availed in the corresponding year.

g. An amount of Rs 1042.08 lakhs towards principal and Rs 146.45 lakhs towards interest pertaining to the month of March 2013 are due as on the date of Balance Sheet.

a. Deposits from Dealers / Stockists represents amounts collected from Dealers / Stockists / Agents as collateral at the time of granting the dealership to sell the products of the Company which is repayable on cancellation of the said dealership. These deposits attract interest @ 6% p.a.

b. Public Deposits aggregating to Rs 3,363.15 lakhs (Previous year Rs 2,713.23 lakhs) is repayable within one year and Rs 32.78 lakhs (Previous Year Rs 173.80 lakhs) is repayable within two years.

Cash credit Loans from Banks viz. Axis Bank Ltd, IDBI Bank Ltd and State Bank of Hyderabad are secured by pari passu first charge on current assets of the Company excluding receivables of Energy Division (both present & future) and second charge on fixed assets of the company and are guaranteed by four promoter directors in their personal capacity. The cash credit is repayable on demand and carries interest @ 13% to 14.70% p.a.

Based on the information available with the Company, amount of dues to Micro, Small and Medium Enterprises outstanding for more than 45 days as at 31st March 2013 is Rs. Nil (Previous Year: Rs. Nil)


Mar 31, 2012

A) Accounting Concepts

The financial statements are presented on going concern concept and in accordance with Indian Generally Accepted Accounting Principles (GAAP).

b) Fixed Assets and Depreciation

Fixed Assets are stated at the cost of acquisition or construction and putting it to working condition

Depreciation on Buildings and Plant & Machinery is charged on straight line method and other assets on Written Down Value method, except Assets of Energy Division.

Depreciation on fixed assets of Energy Division is provided on straight line method at the rates and in the manner prescribed as per notification no.151 dated 29.03.1994 issued by Ministry of Power (Department of Power).

c) Inventories

i) Raw Materials and other Materials are valued at weighted average cost.

ii) Stores and Spares at Cost

iii) Work - in - Process at cost of material plus labour and other overheads and

iv) Finished Goods at Cost or net realizable value whichever is lower.

d) Employee Benefits

Employee Retirement Benefits being Gratuity and Privilege Leave Encashment are provided on actuarial valuation as envisaged in Accounting Standard 15.

e) Income Tax Expense

Deferred (Income Tax) is provided as envisaged in Accounting Standard 22

f) Foreign Currency Transactions

Loss or gain due to fluctuations in foreign currency exchange rates is recognized as envisaged in Accounting Standard 11.

1. The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of Equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual general Meeting.

2. For the Year Ended 31st March,2012, the amount of per share dividend recognized as distribution to equity share holders was Rs.2/- (31st March 2011: Rs.1.50 per share)

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

3. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.


Mar 31, 2010

1. Accounting Concepts

Accounts are based on historical cost convention and prepared in accordance with the Generally Accepted Accounting Principles and applicable Accounting Standards in India.

2. Fixed Assets and Depreciation

Fixed Assets are stated at cost of acquisition and putting to working condition.

Depreciation on Buildings and Plant & Machinery is provided on Straight Line Method and on other assets on Written Down Value method as per the Companies Act, 1956, except assets of Energy Division.

Depreciation on fixed assets of Energy Division is provided on straight line method at the rates and in the manner prescribed as per notification no.151 dated 29.03.1994 issued by Ministry of Power (Department of Power).

3. Inventories:

Inventory of (i) Raw materials and other materials are valued at weighted average cost (ii) stores & spares at cost, (iii) Work-in-Process at cost of material plus labour and other overheads and (iv) Finished Goods at cost or net realisable value whichever is lower.

4. Retirement Benefits:

Employee retirement benefits are provided on actuarial valuation as required in AS-15.

5. Taxes on Income

Deferred tax is provided as required in AS-22.

6. Foreign Currency Transactions

Loss or gain due to fluctuations in foreign currencies is recognized as required in AS 11.

7. Revenue Recognition:

Revenue from Sale of Cement and Boards is recognised on accrual basis. Revenue from Prefab division is recognised based on percentage completion of contract(s) as required in AS-7. Revenue from Energy division is recognised on the basis of energy units delivered at rates provided under power purchase agreement(s) and as modified subsequently by regulatory/court orders.

 
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