Home  »  Company  »  Nissan Copper Ltd.  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Nissan Copper Ltd. Company

Mar 31, 2013

A. Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India, Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. These are based on the historical cost convention Method. The Company generally follows mercantile system of accounting and recognizes items of income and expenditure on accrual basis, except in case of significant uncertainties. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policies explained below.

b. Revenue Recognition

Sales are net of Excise Duty, Sales Tax, Trade discount & returns.

Income from Conversion of job work is accou nted for on the basis of dispatches made.

Interest & other incomes are accounted on accrual basis.

Dividend income is accounted for when the right to receive it is established.

c. Cash & Cash Equivalents

Cash comprises of cash-on-hand and demand deposits with banks. Cash equivalents are short term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

d. Foreign Currency transactions

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of transaction. Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Realised gains and losses on foreign exchange transactions during the year are recognised in the Profit and Loss account Exchange differences in respect of foreign currency loans/liabilities relating to Fixed Assets are accounted in the Profit and Loss Account

Foreign currency current assets and current liabilities are translated at year end rates. In circumstances, where the year end rate is not stable/ highly volatile, monetary items shall be reported based on the subsequent actual realisation rate. Resulting gains/ losses are recognised in the profit and loss account. However resulting gains / losses relating to 100 % subsidiary (considered as Non - Integral Foreign Operation) are accumulated in Foreign Currency Translation Reserve.

Non monetary items such as Investments / Fixed Assets, denominated in foreign currency are stated at exchange rate prevailing on me date of transaction.

In respect of forward foreign exchange contracts, realized gain or loss on cancellation of forward contracts is recognized in the profit & loss account of the year in which they are cancelled.

e. Tangible Fixed assets

Fixed Assets are stated at cost including central sales tax, freight and other incidental expenses incurred in relation to acquisition & installation of the same, net of modvat and VAT.

The Foreign Exchange differences, in respect of Foreign Currency Loans/ Liabilities relating to acquisition of Fixed Assets, are accounted in the Profit and Loss Account.

Capital Work in Progress includes the cost of Fixed Assets that are not ready for use at the Balance Sheet date.

Physical verification of fixed assets is carried out in phase manner in three years. Shortage/excess, if any, is provided for in the year of identification.

Borrowing cost on New ACR Plant has been capitalized as per AS -16, Borrowing costs.

f. Depreciation on Tangible Fixed assets

The Depreciation is provided on fixed assets on written down value method at the rates specified in the Schedule XIV of the Companies Act, 1956 on pro-rata basis for additions/deductions.

g. Intangible Assets

Intangible assets acquired separately are measured on initial recognition on cost.

h. Leases

Finance leases, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease term. .

i. Borrowing Costs

Borrowing costs includes interest, amortization of ancillary cost incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

j. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments. During the financial year 2010-11, company had invested in NC Middle East FZE which is its 100 % subsidiary situated in UAE.

k. Inventories

Raw Materials, Stores & Spares, and Packing Materials are valued at lower of cost or net realisable value under the FIFO method.

Stocks in Process are valued at lower of cost or net realizable value under the FIFO method. The cost is arrived at on full absorption basis as per Accounting Standard AS 2 -Valuation of Inventories.

Finished Goods are valued at lower of cost or net realizable value, under the FIFO method. The cost is arrived at on full absorption basis as per Accounting Standard AS 2 - Valuation of Inventories. Scraps are accounted for on realization.

I. Retirement benefits and leave wages

Company''s contribution to Provident Fund, Pension Scheme & Workman compensation Funds are charged to the Profit & Loss Account on an accrual basis.

Calculation of provision forgratuity for the current year has been done on the basis of own valuation.

Provision for accrued leave encashment is made on the basis of own valuation and charged to profit & loss account of the year.

m. Preliminary Expenditure

Expenses relating to the issue of GDR are accounted under the head Preliminary Expenditure as Preliminary Expenses. Preliminary Expenses & Share Issue Expenses are amortised over a period of ten years. A preliminary expense related to ACR Plant has been amortized overa period of five years.

n. Accounting for Taxes on Income

Tax expense comprises of current and deferred tax. Provision for Current Tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Deferred Tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income & accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

o. Earning per share

Basic earnings per share is computed by dividing the net profit attributable to equity share holders for the year, by weighted average number of equity shares outstanding during the year. Diluted earning per share is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding at the year end.

p. Provisions & Contingencies

The company creates a provision when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

q. Contingent Liability:

A Contingent Liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.

r. Events occurring after Balance Sheet date:

Assets and Liabilities are adjusted for significant events occurring after the Balance Sheet date that provide additional evidences to assist the estimation of accounts relating fo conditions existing at the Balance Sheet date.


Mar 31, 2012

A. Presentation & Disclosure of Financial Statements

During the year ended 31st March 2012, the Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the company, for the preparation and presentation of its financial statements. The adoption of revised schedule VI does not impact the recognition and measurement principles followed for preparation of financial statements. The company has also classified previous year figures in accordance with the requirements applicable in the current year.

b. Revenue Recognition

Sales are net of Excise Duty, Sales Tax, Trade discount & returns.

Income from Conversion of job work is accounted for on the basis of dispatches made.

Interest & other incomes are accounted on accrual basis.

Dividend income is accounted for when the right to receive it is established.

c. Cash & Cash Equivalents

Cash comprises of cash-on-hand and demand deposits with banks. Cash equivalents are short term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

d. Foreign Currency transactions

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of transaction. Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Realised gains and losses on foreign exchange transactions during the year are recognised in the Profit and Loss account. Exchange differences in respect of foreign currency loans/liabilities relating to Fixed Assets are accounted in the Profit and Loss Account.

Foreign currency current assets and current liabilities are translated at year end rates. In circumstances, where the year end rate is not stable / highly volatile, monetary items shall be reported based on the subsequent actual realisation rate. Resulting gains / losses are recognised in the profit and loss account. However resulting gains / losses relating to 100 % subsidiary (considered as Non Integral Foreign Operation) are accumulated in Foreign Currency Translation Reserve.

Non monetary items such as Investments/ Fixed Assets, denominated in foreign currency are stated at exchange rate prevailing on the date of transaction.

In respect of forward foreign exchange contracts, realized gain or loss on cancellation of forward contracts is recognized in the profit & loss account of the year in which they are cancelled.

e. Tangible Fixed assets

Fixed Assets are stated at cost including central sales tax, freight and other incidental expenses incurred in relation to acquisition & installation of the same, net of modvat and VAT.

The Foreign Exchange differences, in respect of Foreign Currency Loans / Liabilities relating to acquisition of Fixed Assets, are accounted in the Profit and Loss Account.

Capital Work in Progress includes the cost of Fixed Assets that are not ready for use at the Balance Sheet date.

Physical verification of fixed assets is carried out in phase manner in three years. Shortage/excess, if any, is provided for in the year of identification.

Borrowing cost on New ACR Plant has been capitalized as per AS -16, Borrowing costs.

f. Depreciation on Tangible Fixed assets

The Depreciation is provided on fixed assets on written down value method at the rates specified in the Schedule XIV of the Companies Act, 1956 on pro-rata basis for additions/deductions.

g. Intangible Assets

Intangible assets acquired separately are measured on initial recognition on cost.

h. Leases

Finance leases, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized atthe inception of the lease term.

i. Borrowing Costs

Borrowing costs includes interest, amortization of ancillary cost incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

j. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments. During the financial year 2010-11, company had invested in NC Middle East FZE which is its 100% subsidiary situated in UAE.

k. Inventories

Raw Materials, Stores & Spares, and Packing Materials are valued at lower of cost or net realisable value under the FIFO method. Stocks in Process are valued at lower of cost or net realizable value under the FIFO method. The cost is arrived at on full absorption basis as per Accounting Standard AS 2 Valuation of Inventories.

Finished Goods are valued at lower of cost or net realizable value, under the FIFO method. The cost is arrived at on full absorption basis as per Accounting Standard AS 2 Valuation of Inventories.

Scraps are accounted for on realization.

I. Retirement benefits and leave wages

Company's contribution to Provident Fund, Pension Scheme & Workman compensation Funds are charged to the Profit

& Loss Account on an accrual basis.

Calculation of provision for gratuity for the current year has been done on the basis of own valuation.

Provision for accrued leave encashment is made on the basis of own valuation and charged to profit & loss account of the year, m. Preliminary Expenditure

Expenses relating to the issue of GDR are accounted under the head Preliminary Expenditure as Preliminary Expenses. Preliminary Expenses & Share Issue Expenses are amortised over a period often years. Preliminary expenses related to ACR Plant has been amortized over a period of five years.

n. Accounting for Taxes on Income

Tax expense comprises of current and deferred tax. Provision for Current Tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Deferred Tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income & accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

o. Earning per share

Basic earnings per share is computed by dividing the net profit attributable to equity share holders for the year, by weighted average number of equity shares outstanding during the year. Diluted earning per share is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding at the year end.

p. Provisions & Contingencies

The company creates a provision when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

q. Contingent Liability:

A Contingent Liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. Contingent liabilties are disclosed in Notes forming part of financial statements.

r. Events occurring after Balance Sheet date:

Assets and Liabilities are adjusted for significant events occurring after the Balance Sheet date that provide additional evidences to assist the estimation of accounts relating to conditions existing at the Balance Sheet date.

Face Value per share at the beginning of the F Y 2010-11 was Rs. 10/-. Pursuant to the Shareholders approval on 16th Day of September, 2010, your Company subdivided its equity share of the Face Value of Rs. 10/- (Rupees Ten) each into Ten Equity Shares of Re.1/- (Rupee One) each, which was effected from the record date 28th September, 2010. The shares issued during the FY 2010-11, consists of 2,50,00,000 shares of Rs.10 per share alloted against GDR and 8,87,90,000 Equity Shares alloted on conversion of Equity Warrants. During the FY2011-12, your Company has consolidated 10 Equity shares of face value of Re. 1/- (Rupee One) each into One Equity share of the face value Rs.10/- (Rupees Ten) each. pursuant to Shareholders approval on 16th Day of September 2011, and was effected from the Record Date i.e. 3rd Day of October 2011.


Mar 31, 2010

1. Basis of preparation of financial statements

The financial statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principles and accounting standards referred to in Section 211 (3C) of the Companies Act, 1956.

2. Revenue recognition

a. The Company generally follows mercantile system of accounting and recognises items of income and expenditure on accrual basis, except in case of significant uncertainties.

b. Sales are inclusive of excise duty but net of Sales Tax,Trade discount & returns.

3. Fixed assets

Fixed Assets are stated at cost including central sales tax, freight and other incidental expenses incurred in relation to acquisition & installation of the same, net of modvat and VAT.

4. Depreciation

The Depreciation is provided on fixed assets on written down value method at the rates specified in the Schedule XIV of the Companies Act, 1956 on pro-rata basis for additions/deductions.

5. Investments

Long Term Investments are stated at cost.

6. Inventories

a. Raw Materials, Stores & Spares, and Packing Materials are valued at lower of cost or net realisable value under the FIFO method.

b. Stocks in Process are valued at lower of cost or net realizable value under the FIFO method.The cost is arrived at on full absorption basis as per Accounting Standard AS 2 -Valuation of Inventories.

c. Finished Goods are valued at lower of cost or net realizable value, under the FIFO method.The cost is arrived at on full absorption basis as per Accounting Standard AS 2 -Valuation of Inventories.

7. Retirement benefits and leave wages

a. Companys contribution to Provident Fund, Pension Scheme & Workman compensation Funds are charged to the Profit & Loss Account on an accrual basis.

b. Gratuity benefit payable at the time of retirement is charged to Profit & Loss Account on the basis of actuarial valuation.The Company maintained Gratuity fund with LIC of India group gratuity scheme.

c. Provision for accrued leave encashment is made on accrual basis and charged to Profit & Loss Account of the year.

8. Miscellaneous expenditure

Preliminary Expenses & Share Issue Expenses are amortised over a period often years.

9. Foreign currency transactions

Foreign Currency transaction relating to Current Assets and Current Liabilities outstanding at the close of the financial year are revalorised at the appropriate exchange rates at the close of the year. The gain or loss due to decrease/increase in rupee liability on account of fluctuations in the rate of exchange is adjusted to Profit & Loss Account.

10. Taxation

a. Provisions for Current Tax are made on the assessable income at the tax rate applicable to the relevant assessment year.

b. Deferred Tax for Timing differences between the tax profit and book Profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future wherever applicable.

 
Subscribe now to get personal finance updates in your inbox!