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Accounting Policies of Nitin Alloys Global Ltd. Company

Mar 31, 2015

A) Basis of Accounting

The financial statements are consistently prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis and are in accordance with the requirements of the Companies Act, 2013.

b) Uses of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and during the reporting year. Difference between the actual result and estimates are recognized in the year in which the results are known / materialized.

c) Fixed Assets

i) Leased Assets

The Company does not have any lease hold asset as such; hence type of lease, capitalization & depreciation policy of same is not required.

ii) Other Fixed Assets

a. Fixed Assets including Intangible Assets have been capitalised at Cost of Acquisition and Other Incidental Expenses.

b. Depreciation on Fixed Assets has been computed on the Straight Line Method, in the manner and as per the estimated useful life of an asset provided under Schedule II to the Companies Act, 2013.

c. Depreciation on the fixed assets added during the year is provided on pro-rata basis with reference to the days of addition.

d) Investments

Long term investments are stated at cost of acquisition. No adjustment is made in the carrying cost for temporary decline, if any, in the value of these investments. Short Term Investments are carried at cost or market value whichever is lower.

e) Inventories

Inventories are valued as under

i. Stores and spares (for regular use) are stated at lower of cost or at net estimated realizable value on first-in-first-out basis.

ii. Raw material, components are valued at lower of cost on first-in-first-out basis or estimated net realizable value basis.

iii. Semi finished goods includes appropriate cost of conversion and other costs incurred in bringing the inventories to their present condition.

f) Gratuity & Retirement benefit

i. The Company has scheme of retirement benefits such as provident fund and gratuity fund and the Company's contributions are charged to the Profit and Loss Account.

ii. In respect of staff and workmen, a contribution to Gratuity Scheme is made under the Group Gratuity Scheme of Life Insurance Corporation of India on the basis of actuarial valuation.

iii. Leave encashment liability is accounted on actual payment basis and charged to the Profit and Loss Account in the year of payment.

g) Revenue Recognition

Sales are recognized upon dispatch and are recorded inclusive of excise duty, service, and Labour charges but are net of returns, trade discount, late delivery charges and transport charges.

Interest income is recognized on a time proportion basis. Dividend income form investment is recognized at the time when it actually received.

h) Purchase

Purchase includes traded goods, custom duty, clearing and forwarding, Octroi and other expenses net of cenvat credit.

i) Foreign Currency Transactions

Foreign currency transactions are recorded at the rate prevailing on the date of transaction. Foreign currency monetary items outstanding as at the Balance Sheet date are restated at the closing rate.

The transaction in Foreign Currency during the year is as under.

Sr. Particulars Current year previous year (Rs.in Lacs) (Rs.in Lacs)

1 C.I.F. Value of Import 318.74 17.43

2. Expenditure in Foreign Currency 18.53 7 54

3 Earnings in Foreign Exchange Nil Nil

j) Expenditure

All Expenses are accounted on accrual basis except leave travel allowances, medical reimbursement, leave encashment, commission on bank guarantees, bank charges, rebate and discounts which are accounted on Cash basis.

k) Contingent Liabilities

Provisions are made for known liabilities and other liabilities as per the provisioning policy of the Company or where additional risks are identified by the Management, based on such identification.

The Company has not recognized any Contingent Liabilities other than those specified below.

Current Year Previous Year Sr. Particulars (Rs. in Lacs) (Rs. in Lacs)

1. Letter of Guarantee given by the 56.34 38.73 Bankers

2 Letter of Credit issued by the 1 88.92 Nil Bankers

Letter of Credit Acceptances and Endorsements Nil Nil

4. Bills Discounting 44.42 Nil

Claims against the Company not acknowledge as debts Nil Nil

l) Earnings per share

Sr. Particulars Current Year Previous Year (Rs.) (Rs.)

1. Net Profit / (Loss) after Tax as per Profit and Loss Account 1,11,09,063 88,59,708

2. Number of Shares Outstanding during the year 14,04,000 14,04,000

3. Basic & Diluted Earnings per shares on Weighted average Basis 7.91 6.31

m) Taxes & Duties

i. Income Tax comprises of Current Tax and net changes in Deferred Tax Assets or Liabilities during the year. Current Tax is determined at the amount of tax payable in respect of taxable income for the year as per the Income-tax Act, 1961, based on the estimates of weighted average income tax rate expected for the full financial year.

ii. Deferred Tax Assets and Liabilities are recognized for the future tax consequences of timing differences between the book profit and tax profit. Deferred Tax Assets and Liabilities other than on carry forward losses and unabsorbed depreciation under tax laws are recognized when it is reasonably certain that there will be future taxable income.

iii. Net Deferred Tax Liability and Assets is recognized on timing differences between accounting income and taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on the Balance Sheet date. Net Deferred Tax liability has been recognized in the Books as required by AS-22 of the Institute of Chartered Accountants of India.

n) Loans from Banks

i. Secured Loan from Indian Overseas Bank is secured by way of hypothecation of entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares, debtors, plant and machineries, and charge on immovable properties at Silvassa Plant.

ii. Car Loans are secured by hypothecation of motor vehicles purchased here-against.

o) In the opinion of the Board, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The balances of Sundry Debtors, Loans and advances, Deposits, some of the Sundry Creditors and Unsecured Loans are subject to confirmations and adjustments, if any.

p) None of the Company's suppliers have intimated of their being a Small Scale Industrial Undertaking and to the best of the company's knowledge and belief sundry creditors as at 31st March, 2015 does not include outstanding due to Small Scale Industries within the meaning of Section 3 of the Industries (Development and Regulation) Act, 1951.

q) Borrowing Cost :

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

r) Related Parties Disclosures

As per AS-18 issued by the Institute of Chartered Accountants of India, the Company's related parties are as under :

1. Relationships

i) Enterprises under significant ii) Key Management personnel and influence of Key Management their relatives : Personnel : Mr. Nirmal Kedia

Mr. Nitin Kedia Nitin Castings Limited Mr. Nipun Kedia

Mr. Shyamlal Agarwal


Mar 31, 2014

A) Basis of Accounting

The financial statements are consistently prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b) Uses of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and during the reporting year. Difference between the actual result and estimates are recognized in the year in which the results are known / materialized.

c) Fixed Assets

i) Leased Assets

The Company does not have any lease hold asset as such, hence type of lease, capitalization & depreciation policy of same is not required.

ii) Other Fixed Assets

a. Fixed Assets including Intangible Assets have been capitalised at Cost of Acquisition and Other Incidental Expenses.

b. Depreciation on Fixed Assets has been computed on the Straight Line Method at the rates provided under Schedule XIV to the Companies Act, 1956.

c. Depreciation on the fixed assets added during the year is provided on pro-rata basis with reference to the days of addition.

d) Investments

Long term investments are stated at cost of acquisition. No adjustment is made in the carrying cost for temporary decline, if any, in the value of these investments. Short Term Investments are carried at cost or market value whichever is lower.

e) Inventories

Inventories are valued as under

i. Stores and spares (for regular use) are stated at lower of cost or at net estimated realizable value on first-in-first-out basis.

ii. Raw material, components are valued at lower of cost on first-in-first-out basis or estimated net realizable value basis.

iii. Semi finished goods includes appropriate cost of conversion and other costs incurred in bringing the inventories to their present condition.

f) Gratuity & Retirement benefit

i. The Company has scheme of retirement benefits such as provident fund and gratuity fund and the Company''s contributions are charged to the Profit and Loss Account.

ii. In respect of staff and workmen, a contribution to Gratuity Scheme is made under the Group Gratuity Scheme of Life Insurance Corporation of India on the basis of actuarial valuation.

iii. Leave encashment liability is accounted on actual payment basis and charged to the Profit and Loss Account in the year of payment.

g) Revenue Recognition

Sales are recognized upon dispatch and are recorded inclusive of excise duty, service, and Labour charges but are net of returns, trade discount, late delivery charges and transport charges.

Interest income is recognized on a time proportion basis. Dividend income form investment is recognized at the time when it actually received.

h) Purchase

Purchase includes traded goods, custom duty, clearing and forwarding, Octroi and other expenses net of cenvat credit.

i) Foreign Currency Transactions

Foreign currency transactions are recorded at the rate prevailing on the date of transaction. Foreign currency monetary items outstanding as at the Balance Sheet date are restated at the closing rate.

j) Expenditure

All Expenses are accounted on accrual basis except leave travel allowances, medical reimbursement, leave encashment, commission on bank guarantees, bank charges, rebate and discounts which are accounted on Cash basis.

k) Contingent Liabilities

Provisions are made for known liabilities and other liabilities as per the provisioning policy of the Company or where additional risks are identified by the Management, based on such identification.


Mar 31, 2013

A) BasisofAccounting

The financial statements are consistently prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern.All expenses and income to the extent ascertainable with reasonable certainty are accounted foronaccrual basis and areinaccordance with the requirementsof the CompaniesAct, 1956.

b) UsesofEstimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and during the reporting year. Difference between the actual result and estimates are recognizedin the yearin which the results are known/ materialized.

c) FixedAssets

i) LeasedAssets

The Company does not have any lease hold asset as such, hence type of lease, capitalization & depreciation policy ofsameisnot required.

ii) Other FixedAssets

a. Fixed Assets including Intangible Assets have been capitalised at Cost of Acquisition and Other Incidental Expenses.

b. Depreciation on Fixed Assets has been computed on the Straight Line Method at the rates provided under Schedule XIVto the CompaniesAct, 1956.

c. Depreciation on the fixed assets added during the year is provided on pro-rata basis with referencetothe days ofaddition.

d) Investments

Investments (all long term) are stated at cost of acquisition. No adjustment is made in the carrying cost for temporary decline,ifany,inthe valueofthese investments.

e) Inventories

Inventories are valued as under

i. Stores and spares (for regular use) are stated at lower of cost or at net estimated realizable value on first-in-first-out basis.

ii. Raw material, components are valued at lower of cost on first-in-first-out basis or estimated net realizable value basis.

iii. Semi finished goods includes appropriate cost of conversion and other costs incurred in bringing the inventories to their present condition.

f) Gratuity&Retirement benefit

i. The Company has scheme of retirement benefits suchas provident fund and gratuity fund and the Company''s contributions are charged tothe Profit and LossAccount.

ii. In respect of staff and workmen, a contribution to Gratuity Scheme is made under the Group Gratuity Schemeof Life Insurance Corporation ofIndia on the basisofactuarial valuation.

iii. Leave encashment liability is accounted on actual payment basis and charged to the Profit and LossAccountinthe yearof payment.

g) RevenueRecognition

Sales are recognized upon dispatch and are recorded inclusive of excise duty, service, and Labour charges but are netofreturns, trade discount, late delivery charges and transport charges.

h) Purchase

Purchase includes traded goods, custom duty, clearing and forwarding, Octroi and other expenses net of cenvat credit.

i) Foreign Currency Transactions

Foreign currency transactions are recorded at the rate prevailing on the date of transaction. Foreign currency monetary items outstandingasatthe Balance Sheet date are restatedatthe closing rate.

j) Expenditure

All Expenses are accounted on accrual basis except leave travel allowances, medical reimbursement, leave encashment, commission on bank guarantees, bank charges, rebate and discounts which are accounted on Cash basis.

k) Contingent Liabilities

Provisions are made for known liabilities and other liabilities as per the provisioning policy of the Companyorwhere additional risks are identifiedbythe Management, basedonsuch identification. The Company has not recognized any Contingent Liabilities other than those specified below:

Current Year Previous Year Sr. Particulars (Rs.in Lacs) ( Rs. in Lacs)

1. LetterofGuarantee givenbythe Bankers 4.14 98.90

2. LetterofCredit issuedbythe Bankers 25.07 49.42

Letter of Credit Acceptances and

3. Nil 28.67 Endorsements

4. Bills Discounting 36.13 9.65

Claims against the Company not

5. Nil Nil acknowledge as debts

m) TaxesonIncome

i. Income Tax comprises of Current Tax and net changes in Deferred TaxAssets or Liabilities during the year. Current Tax is determined at the amount of tax payable in respect of taxable income for the year as per the Income-taxAct, 1961, based on the estimates of weighted average income tax rate expected for the full financial year.

ii. Deferred Tax Assets and Liabilities are recognized for the future tax consequences of timing differences between the book profit and tax profit. Deferred Tax Assets and Liabilities other than on carry forward losses and unabsorbed depreciation under tax laws are recognized when it is reasonably certain that there willbefuture taxable income.

iii. Net Deferred Tax Liability and Assets is recognized on timing differences between accounting income and taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on the Balance Sheet date. Net Deferred Tax liability has been recognized inthe Booksas required byAS-22ofthe InstituteofCharteredAccountantsofIndia.

n) Loans fromBanks

i. Secured Loan from Indian Overseas Bank is secured by way of hypothecation of entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares, debtors, plant and machineries, and chargeonimmovable properties atSilvassa Plant.

ii. Car Loans are securedbyhypothecation ofmotor vehicles purchased here-against.


Mar 31, 2012

A) Basis of Accounting

The financial statements are consistently prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b) Uses of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and during the reporting year. Difference between the actual result and estimates are recognized in the year in which the results are known / materialized.

c) Fixed Assets

i) Leased Assets

The Company does not have any lease hold asset as such, hence type of lease, capitalization & depreciation policy of same is not required.

ii) Other Fixed Assets

a. Fixed Assets including Intangible Assets have been capitalised at Cost of Acquisition and Other Incidental Expenses.

b. Depreciation on Fixed Assets has been computed on the Straight Line Method at the rates provided under Schedule XIV to the Companies Act, 1956.

c. Depreciation on the fixed assets added during the year is provided on pro-rata basis with reference to the days of addition.

d) Investments

Investments (all long term) are stated at cost of acquisition. No adjustment is made in the carrying cost for temporary decline, if any, in the value of these investments.

e) Inventories

Inventories are valued as under

i. Stores and spares (for regular use) are stated at lower of cost or at net estimated realizable value on first-in-first-out basis.

ii. Raw material, components are valued at lower of cost on first-in-first-out basis or estimated net realizable value basis.

iii. Semi finished goods includes appropriate cost of conversion and other costs incurred in bringing the inventories to their present condition.

f) Gratuity & Retirement benefit

i. The Company has scheme of retirement benefits such as provident fund and gratuity fund and the Company's contributions are charged to the Profit and Loss Account.

ii. In respect of staff and workmen, a contribution to Gratuity Scheme is made under the Group Gratuity Scheme of Life Insurance Corporation of India on the basis of actuarial valuation.

iii. Leave encashment liability is accounted on actual payment basis and charged to the Profit and Loss Account in the year of payment.

g) Revenue Recognition

Sales are recognized upon dispatch and are recorded inclusive of excise duty, service, and Labour charges but are net of returns, trade discount, late delivery charges and transport charges .The unit of the company situated at Silvassa is exempted from sales tax.

h) Purchase

Purchase includes traded goods, custom duty, clearing and forwarding, Octroi and other expenses net of cenvat credit.

i) Foreign Currency Transactions

Foreign currency transactions are recorded at the rate prevailing on the date of transaction. Foreign currency monetary items outstanding as at the Balance Sheet date are restated at the closing rate.

j) Expenditure

All Expenses are accounted on accrual basis except leave travel allowances, medical reimbursement, leave encashment, commission on bank guarantees, bank charges, rebate and discounts which are accounted on Cash basis.


Mar 31, 2010

A) Basic of Accounting

The financial statements are consistently prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basts and are in accordance with the requirements of the Companies Act 1956.

b) Uses of Estimates

The preparation of the financial statements in conformnity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and during the reporting year. Difference between the actual result and estimates are recognized in the year in which the results are known materialized.

c) Fixed Assets

i. Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation.

ii The cost comprises the purchase price, duties, applicable taxes (net of cenval availed) and any attributable cost of bringing the assets to its working condition for its intended use.

iii. Depreciation on Fixed Assets is provided for on Straight Line Method at rates prescribed under Schedule XIV to the Companies Act. 1956.

iv. Depreciation on the fixed assets added during the year is provided on pro-rata basis with reference to the days of addition.

d) Investments

Investments (all long term) are stated at cost of acquisition. No adjustment is made In the carrying cost for temporary decline, if any. in the value of these investments.

e) Inventories

Inventories are valued as under

i. Stores and spares (for regular use) are stated at lower of cost or at net estimated realizable value on first- in - first -out basis.

ii. Raw material, components are valued at lower of cost on first-in-first-out basis or estimated net realizable value basis.

iii. Semi finished goods includes appropriate cost of conversion and other costs Incurred in bringing the inventories to their present condition.

iv Stock in trade of shares are valued at cost and wherever applicable on First- in first -out basis.

f) Gratuity & Retirement benefit

i. The Company has scheme of retirement benefits such as provident fund and gratuity fund and the Companys contributions are charged to the Profit and Loss Account.

ii. In respect of staff and workmen, a contribution to Gratuity Scheme is made under the Group Gratuity Scheme of Life Insurance Corporation of India on the basis of actuarial valuation.

iii. Leave encashment liability is accounted on actual payment basis and charged to the Profit and Loss Account in the year of payment.

g) Revenue Recognition

i. Sales are recognized upon dispatch and are recorded inclusive of excise duty, service, and Labour charges but are net of returns, trade discount, late delivery charges and transport charges .The unit of the company situated at Silvassa is exempted from sales tax.

ii. Dividend income is accounted on receipt basis.

h) Purchase

Purchase includes traded goods, custom duty, clearing and forwarding, Octroi and other expenses net of cenvat credit

i) Expenditure

i. All Expenses are accounted on accrual basis except leave travel allowances, medical reimbursement, and leave encashment, commission on bank guarantees, bank charges, rebate and discounts which are accounted on Cash basis.

 
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