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Accounting Policies of Nilachal Refractories Ltd. Company

Mar 31, 2015

1. ACCOUNTING POLICY

Accounts are maintained under the mercantile system of accounting, adopting historical cost convention. The significant accounting policies are:

1.1. Revenues:

- Sales are inclusive of excise duty. Bonus claims, linked to operating efficiency of products, are recognized upon crystallization.

- Export Incentive under the Duty Entitlement Pass Book Scheme are recognized on the basis of credits afforded in the pass book.

1.2. Claims:

- Claims of the Company towards loss, damage and escalation are accounted when there is a certainty that the claim is realizable.

1.3. Valuation of Inventories:

- Raw materials, semi finished products and goods-in-process are valued at cost, finished products are carried at lower of cost and net realizable value. Stores and spares are carried at cost. Cost for the purpose of valuation is generally ascertained on weighted average basis.

1.4. Fixed Assets:

- Fixed assets are valued at original cost of acquisition including taxes (which are unrecoverable), duties, freight and other incidental expenses relating to acquisition and installation. Net Changes on foreign Exchange con- tracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

- Depreciation:

Depreciation is systematically allocated over the useful life of an asset as specified in part C of schedule II of Companies Act, 2013.

- Impairment of Assets:

The company reviews the carrying value of the assets for any possible impairment on each balance sheet date. Impairment loss, if any, is recognized in the year in which impairment takes place.

1.5. Foreign Currency: i

- Transactions in foreign currency are accounted for at the prevailing rate on the transaction date. The year end balances in foreign currency are re-stated at the closing rate and the resultant difference is carried to Profit & Loss Account.

1.6. Borrowing Cost:

- The borrowing costs, those are directly attributable to the acquisition, construction or production of qualifying assets are capitalized.

1.7. Research and Development Expenditure:

- Revenue expenditure on Research and Development is charged out in the year in which it is incurred. Expenditure, which results in creation of assets, is included in fixed assets and depreciation is provided on such assets as are applicable.

1.8. Intangible Assets:

- Expenditure incurred is treated in accordance with the provisions of Accounting Standard-26 "Intangible Assets" issued by the ICAI.

1.9. Basis of Preparation of Financial Statements:

- The financial statements are prepared under the historical cost convention, except for certain fixed assets which are revalued, in accordance with generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

- The Company generally follows the mercantile system of accounting and recognizes significant items of in- come and expenditure on accrual basis.

1.10. Use of Estimates.

- The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and 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.

1.11. Provisions, 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 Li- abilities are not recognized but are disclosed in notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.12. Retirement Benefits:

- Contribution towards Provident Fund is being charged to revenue on accrual basis and is deposited to regional office of the concerned authority

- Provision for gratuity has been made on the method as prescribed in the respective act.

- Provision has been made for accrued leave salary due to the employees, computed with reference to unveiled leave of the employee at the year end.

1.13. Deferred Tai:

- Provision for Tax is made for current and deferred taxes. Current taxes is provided on the taxable income using applicable tax rates and tax laws. Deferred Tax Assets and Liabilities arising on account of timing dif- perennial and which are Capable of reversal in subsequent periods are recognized using the Tax rates and Tax Laws that have been enacted or substantively enacted till the date of the Balance Sheet. Deferred Tax Assets are not recognized unless there is "Virtual Certainty" that Sufficient future taxable income will be available against which such Deferred Tax Assets will be realized.

1.14. Impairment of Assets:

- The carrying amount of assets are reviewed at each balance sheet date, if there is an Indication of impairment based on the internal and external factors.


Mar 31, 2014

Not Available.


Mar 31, 2013

1. ACCOUNTING POLICY

Accounts are maintained under the mercantile system of accounting, adopting historical cost convention. The significant accounting policies are:

1.1. Revenues:

a) Sales are inclusive of excise duty. Bonus claims, linked to operating efficiency of products, are recognized upon crystallization.

b) Export Incentive under the Duty Entitlement Pass Book Scheme are recognized on the basis of credits afforded in the pass book.

1.2. Claims:

Claims of the Company towards loss, damage and escalation are accounted when there is a certainty that the claim is realizable.

1.3. Valuation of Inventories:

Raw materials, semi finished products and goods-in-process are valued at cost. Finished products are carried at lower of cost and net realizable value. Stores and spares are carried at cost. Cost for the purpose of valuation is generally ascertained on weighted average basis.

1.4. Fixed Assets:

Fixed assets are valued at original cost of acquisition including taxes, duties, freight and other incidental expenses relating to acquisition and installation.

a) Depreciation:

Depreciation is provided on a straight line basis applying the rates specified in Schedule XIV to the Companies Act, 1956.

b) Impairment of Assets :

The company reviews the carrying value of the assets for any possible impairment on each balance sheet date. Impairment loss, if any, is recognized in the year in which impairment takes place.

1.5. Foreign Currency:

Transactions in foreign currency are accounted for at the prevailing rate on the transaction date. The year end balances in foreign currency are re-stated at the closing rate and the resultant difference is carried to Profit & Loss Account.

1.6. Borrowing Cost:

The borrowing costs those are directly attributable to the acquisition, construction or production of a qualifying assets are capitalized.

1.7. Research and Development Expenditure:

Revenue expenditure on Research and Development is charged out in the year in which it is incurred. Expenditure, which results in creation of assets, is included in fixed assets and depreciation is provided on such assets are applicable.

1.8. Intangible Assets:

Expenditure incurred is treated in accordance with the provisions of Accounting Standard-26 "Intangible Assets" issued by the ICAI.

1.9. Basis of Preparation of Financial Statements:

(i) The financial statements are prepared under the historical cost convention, except for certain fixed assets which are revalued, in accordance with generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

(ii)The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

1.10. Use of Estimates.

The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and 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.

1.11. 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 notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.12. Retirement Benefits:

a. Contribution towards Provident Fund is being charged to revenue on accrual basis and is deposited to regional office of the concerned authority

b. Provision for gratuity has been made on the method as prescribed in the respective act.

c. Provision has been made for accrued leave salary due to the employees, computed with reference to un availed leave of the employee at the year end.

1.13. Deferred Tax:

Provision for Tax is made for current and deferred taxes. Current taxes is provided on the taxable income using applicable tax rates and tax laws.Deferred Tax Assets and Liabilities arising on account of timing differential and which are capable of reversal in subsequent periods are recognized using the Tax rates and Tax Laws that have been enacted or substantively enacted till the date of the Balance Sheet. Deferred Tax Assets are not recognized unless there is "Virtual Certainty" that Sufficient future taxable income will be available against which such Deferred Tax Assets will be realized.

1.14. Impairment of Assets:

The carrying amount of assets are reviewed at each balance sheet date, if there is an Indication of impairment based on the internal and external factors.


Mar 31, 2012

Accounts are maintained under the mercantile system of accounting, adopting historical cost convention. The significant accounting policies are:

1.1. Revenues:

a) Sales are inclusive of excise duty. Bonus claims, linked to operating efficiency of products, are recognized upon crystallization.

b) Export Incentive under the Duty Entitlement Pass Book Scheme are recognized on the basis of shipping bills.

1.2. Claims:

Claims of the Company towards loss, damage and escalation are accounted when there is a certainty that the claim is realizable.

1 .3. Valuation of Inventories:

Raw materials, semi finished products and goods-in-process are valued at cost. Finished products are carried at lower of cost and net realizable value. Stores and spares are carried at cost. Cost for the purpose of valuation is generally ascertained on weighted average basis.

1.4. Fixed Assets:

Fixed assets are valued at original cost of acquisition including taxes, duties, freight and other incidental expenses relating to acquisition and installation.

a) Depreciation:

Depreciation is provided on a straight line basis applying the rates specified in Schedule XIV to the Companies Act, 1956.

b) Impairment of Assets:

The company reviews the carrying value of the assets for any possible impairment on each balance sheet date. Impairment loss, if any, is recognized in the year in which impairment takes place.

1.5. Foreign Currency:

Transactions in foreign currency are accounted for at the prevailing rate on the transaction date. The year end balances in foreign currency are re-stated at the closing rate and the resultant difference is carried to Profit & Loss Account.

1.6. Borrowing Cost:

The borrowing costs those are directly attributable to the acquisition, construction or production of a qualifying assets are capitalized.

1.7. Research and Development Expenditure:

Revenue expenditure on Research and Development is charged out in the year in which it is incurred. Expenditure, which results in creation of assets, is included in fixed assets and depreciation is provided on such assets are applicable.

1.8. Intangible Assets:

Expenditure incurred is treated in accordance with the provisions of Accounting Standard-26 "Intangible Assets" issued by the ICAI.

1.9. Basis of Preparation of Financial Statements:

(i) The financial statements are prepared under the historical cost convention, except for certain fixed assets which are revalued, in accordance with generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

(ii) The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

1.10. Use of Estimates.

The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and 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 re known/ materialized.

1.11. 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 notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.12. Retirement Benefits:

a) Contribution towards Provident Fund is being charged to revenue on accrual basis and is deposited to regional office of the concerned authority

b) Provision for gratuity has been made on the method as prescribed in the respective act.

c) Provision has been made for accrued leave salary due to the employees, computed with reference to un availed leave of the employee at the year end.

1.13. Deferred Tax:

Provision for Tax is made for current and deferred taxes. Current Tax is provided on the taxable income using applicable Tax rate and Tax Laws. Deferred Tax Assets and Liabilities arising on account of timing differential and which are capable of reversal in subsequent periods are recognized using the Tax Rates and Tax Laws that have been enacted or substantively enacted till the date of the Balance Sheet. Deferred Tax Assets are not recognized unless there is "virtual certainty" that sufficient future taxable income will be available against which such Deferred Tax Assets will be realized.

1.14. Impairment of Asset:

The carrying amount of assets are reviewed at each balance sheet date, if there is an indication of impairment based on internal and external factors.


Mar 31, 2011

1. ACCOUNTING POLICY

Accounts are maintained under the mercantile system of accounting, adopting historical cost convention. The significant accounting policies are:

1.1. Revenues:

Sales are inclusive of excise duty. Bonus claims, linked to operating efficiency of products, are recognized upon crystallization.

1.2. Claims:

Claims of the Company towards loss, damage and escalation are accounted when there is a certainty that the claim is realizable.

1.3. Valuation of Inventories:

Raw materials, semi finished products and goods-in-process are valued at cost. Finished products are carried at lower of cost and net realizable value. Stores and spares are carried at cost. Cost for the purpose of valuation is generally ascertained on weighted average basis.

1.4. Fixed Assets:

Fixed assets are valued at original cost of acquisition including taxes, duties, freight and other incidental expenses relating to acquisition and installation.

a) Depreciation:

Depreciation is provided on a straight line basis applying the rates specified in Schedule XIV to the Companies Act, 1956.

b) Impairment of Assets:

The company reviews the carrying value of the assets for any possible impairment on each balance sheet date. Impairment loss, if any, is recognized in the year in which impairment takes place.

1.5. Foreign Currency:

Transactions in foreign currency are accounted for at the prevailing rate on the transaction date. The year end balances in foreign currency are re-stated at the closing rate and the resultant difference is carried to Profit & Loss Account.

1.6. Borrowing Cost:

The borrowing costs those are directly attributable to the acquisition, construction or production of a qualifying assets are capitalized.

1.7. Research and Development Expenditure:

Revenue expenditure on Research and Development is charged out in the year in which it is incurred. Expenditure, which results in creation of assets, is included in fixed assets and depreciation is provided on such assets are applicable.

1.8. Intangible Assets:

Expenditure incurred is treated in accordance with the provisions of Accounting Standard-26 "Intangible Assets" issued by the ICAI.

1.9. Basis of Preparation of Financial Statements:

(i) The financial statements are prepared under the historical cost convention, except for certain fixed assets which are revalued, in accordance with generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

(ii) The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

1.10. Use of Estimates.

The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and 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.

1.11. 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 notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.12. Retirement Benefits:

a) Contribution towards Provident Fund is being charged to revenue on accrual basis and is deposited to regional office of the concerned authority

b) Provision for gratuity has been made on the method as prescribed in the respective act.

c) Provision has been made for accrued leave salary due to the employees, computed with reference to unavailed leave of the employee at the year end,


Mar 31, 2010

Accounts are maintained under the mercantile system of accounting, adopting historical cost convention. The significant accounting policies are:

1.1. Revenues:

Sales are inclusive of excise duty. Bonus claims, linked to operating efficiency of products, are recognized upon crystallization.

1.2. Claims:

Claims of the Company towards loss, damage and escalation are accounted when there is a certainty that the claim is realizable.

1.3. Valuation of Inventories:

Raw materials, semi finished products and goods-in-process are valued at cost. Finished products are carried at lower of cost and net realizable value. Stores and spares are carried at cost. Cost for the purpose of valuation is generally ascertained on weighted average basis.

1.4. Fixed Assets:

Fixed assets are valued at original cost of acquisition including taxes, duties, freight and other incidental expenses relating to acquisition and installation.

a) Depreciation:

Depreciation is provided on a straight line basis applying the rates specified in Schedule XIV to the Companies Act, 1956.

b) Impairment of Assets:

The company reviews the carrying value of the assets for any possible impairment on each balance sheet date. Impairment loss, if any, is recognized in the year in which impairment takes place.

1.5. Foreign Currency:

Transactions in foreign currency are accounted for at the prevailing rate on the transaction date. The year end balances in foreign currency are re-stated at the closing rate and the resultant difference is carried to Profit & Loss Account.

1.6. Borrowing Cost:

The borrowing costs those are directly attributable to the acquisition, construction or production of a qualifying assets are capitalized.

1.7. Research and Development Expenditure:

Revenue expenditure on Research and Development is charged out in the year in which it is incurred. Expenditure, which results in creation of assets, is included in fixed assets and depreciation is provided on such assets are applicable.

1.8. Intangible Assets:

In accordance with Accounting Standard-26 "Intangible Assets" issued by the ICAI expenditure incurred on increase of Authorised Capital have been written off in the year of its incurrence.

1.9. Basis of Preparation of Financial Statements:

(i) The financial statements are prepared under the historical cost convention, except for certain fixed assets which are revalued, in accordance with generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

(ii) The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

1.10. Use of Estimates.

The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statementsand 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.

1.11. 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 notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.12. Retirement Benefits:

a) Contribution towards Provident Fund is being charged to revenue on accrual basis and is deposited to regional office of the concerned authority

b) Provision for gratuity has been made on the method as prescribed in the respective act.

c) Provision has been made for accrued leave salary due to the employees, computed with reference to unavailed leave of the employee at the year end.

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