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Accounting Policies of Rajdarshan Industries Ltd. Company

Mar 31, 2014

1.1 Method of Accounting:

(a) The accounts have been prepared as per historical cost convention on an accrual basis except claims/refunds not ascertainable with reasonable certainty are accounted for on cash basis.

(b) Accounting policies not specifically referred to otherwise are consistent and consonance with generally accepted accounting principles followed by the Company.

(c) Company is providing for the export benefits on the cash basis.

1.2 Fixed Assets:

(a) Fixed assets are stated at their original cost including incidental expenditure related to acquisition and installation, less accumulated depreciation.

(b) Interest on loans taken for procurement of specific assets, accrued till such assets are put to use are charged to the profit and loss account.

(c) Indirect expenditure incurred during construction period to the extent to which the expenditure are incidental to construction is capitalized and apportioned to various fixed assets in proportion to their cost.

(d) Indirect expenditure incurred during the construction period related to the fixed assets not yet put to use remains pending for allocation in capital work in progress.

1.3 Depreciation:

(a) Depreciation is provided on straight-line method in accordance with the provision of section 205(2)(b) and at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

(b) Depreciation on fixed assets has been calculated on pro-rata basis with reference to the month in which the assets are put to use.

1.4 Inventories:

a) Finished goods are valued at cost or net realisable value whichever is lower.

1.5 Sales:

(a) Sale of goods is recognised on despatch and in accordance with the terms and conditions of the sale.

(b) Contract and Machinery Hire Charges are recognized on accrual basis.

1.6 Retirement Benefits:

Gratuity is accounted for on cash basis.

1.7 Foreign Exchange Fluctuation:

Current assets and liabilities in foreign currency outstanding at the close of the financial year are valued at the contracted exchange rate. The variation in value on account of fluctuation is accounted on cash basis.

1.8 Investments:

Investments are stated at cost.

1.9 Taxes and Income:

1. Income Tax expense for the year comprises of current tax, deferred tax and fringe benefit tax. Current Tax provision has been determined on the basis of relief, deductions, etc. available underthe Income TaxAct, 1961, and deferred tax is accounted for by computing the tax effect of timing differences, which arise during the year and reversed in subsequent periods.

2. Capital-work-in progress is for purchase of mining machineries as well as advance for construction and acquisition of immovable assets.

3. During the year, Central Excise and Custom Department has file review application where as the Company won the case at appellate level against the Service tax demand of 12.42 lacs. In the view of above no such Contingent liabilities provided (previous year NIL).

4. The estimated amount of contract remaining to be executed on capital account and not provided for net of advance Rs.Nil (previous year-Rs. Nil).

5. There were no amount due and outstanding to be credited to investor Education and Protection fund.

6. Loans and advances, sundry debtors and sundry creditors are subject to confirmation by management.

7. Advances includes amount due from employees Rs.39,979/- maximum outstanding during the year Rs. 51,0,23/-.

8. The Company has not provided for the diminution / appreciation in the value of long-term investment made since in the opinion of the management such diminution / appreciation in their value is temporary in nature considering the interest value and nature of the investments and invested assets.

9. (a)Sundry creditors include Rs.Nil (previous year Rs.Nil/-) due to small scale and ancillary undertakings.

(b)The above information has been determined to the extent such parties have been identified as small scale and ancillary undertaking on the basis of information available with the Company.

10. The company has loans & advances and debts recoverable from various firms and companies.

(a) In respect of advances aggregating to Rs.19701211/-, which are considered doubtful for recovery and for which Rs.10257498/- provision has been made.

(b) In respect of debts aggregating to Rs.639237/-, which are considered bad / doubtful for recovery and for which Rs.639237/- provision has been made.

(c) In respect of debt aggregating to Rs 574372/-, outstanding from companies have been written off by the Company during the year, against the provision of Rs. NIL already made in earlier years.

(d) The company is taking all efforts including legal course to recoverthe amounts outstanding from the respective parties.

(e) The management believes that ultimate losses that may result on account of these loans and advances and debts will depend upon the amount that would be realized in subsequent years.


Mar 31, 2013

1.1 Method of Accounting:

(a) The accounts have been prepared as per historical cost convention on an accrual basis except claims/refunds not ascertainable with reasonable certainty are accounted for on cash basis.

(b) Accounting policies not specifically referred to otherwise are consistent and consonance with generally accepted accounting principles followed by the Company.

(c) Company is providing for the export benefits on the cash basis.

1.2 Fixed Assets:

(a) Fixed assets are stated at their original cost including incidental expenditure related to acquisition and installation, less accumulated depreciation.

(b) Interest on loans taken for procurement of specific assets, accrued till such assets are put to use are charged to the profit and loss account.

(c) Indirect expenditure incurred during construction period to the extent to which the expenditure are incidental to construction is capitalized and apportioned to various fixed assets in proportion to their cost.

(d) Indirect expenditure incurred during the construction period related to the fixed assets not yet put to use remains pending for allocation in capital work in progress.

1.3 Depreciation:

(a) Depreciation is provided on straight-line method in accordance with the provision of section 205(2)(b) and at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

(b) Depreciation on fixed assets has been calculated on pro-rata basis with reference to the month in which the assets are put to use.

1.4 Inventories:

a) Finished goods are valued at cost or net realizable value whichever is lower.

1.5 Sales:

(a) Sale of goods is recognized on despatch and in accordance with the terms and conditions of the sale.

(b) Contract and Machinery Hire Charges are recognized on accrual basis.

1.6 Retirement Benefits:

Gratuity is accounted for on cash basis.

1.7 Foreign Exchange Fluctuation:

Current assets and liabilities in foreign currency outstanding at the close of the financial year are valued at the contracted exchange rate. The variation in value on account of fluctuation is accounted on cash basis.

1.8 Investments:

Investments are stated at cost.

1.9 Taxes and Income:

1. Income Tax expense for the year comprises of current tax, deferred tax and fringe benefit tax. Current Tax provision has been determined on the basis of relief, deductions, etc. available under the Income Tax Act, 1961, and deferred tax is accounted for by computing the tax effect of timing differences, which arise during the year and reversed in subsequent periods.

2. Capital-work-in progress is for purchase of mining machineries as well as advance for construction and acquisition of immovable assets.

3. Contingent liabilities not provided for includes bank guarantee issued by State Bank of India NIL (previous year NIL).

4. The estimated amount of contract remaining to be executed on capital account and not provided for net of advance Rs.Nil (previous year -Rs. Nil).

5. There were no amount due and outstanding to be credited to investor Education and Protection fund.

6. Loans and advances, sundry debtors and sundry creditors are subject to confirmation by management.

7. Advances includes amount due from employees Rs.41,023/- maximum outstanding during the year Rs.51,023/-.

8. The Company has not provided for the diminution / appreciation in the value of long-term investment made since in the opinion of the management such diminution / appreciation in their value is temporary in nature considering the interest value and nature of the investments and invested assets.

9. (a) Sundry creditors include Rs.Nil (previous year Rs.Nil/-) due to small scale and ancillary undertakings.

(b) The above information has been determined to the extent such parties have been identified as small scale and ancillary undertaking on the basis of information available with the Company.

10. The company has loans & advances and debts recoverable from various firms and companies.

(a) In respect of advances aggregating to Rs.16701211/-, which are considered doubtful for recovery and for which Rs.10257498/- provision has been made.

(b) In respect of debts aggregating to Rs.639237/-, which are considered bad / doubtful for recovery and for which Rs.639237/- provision has been made.

(c) In respect of debt aggregating to 516250, outstanding from companies have been written off by the Company during the year, against the provision of Rs. Nil already made in earlier years.

(d) The company is taking all efforts including legal course to recover the amounts outstanding from the respective parties.

(e) The management believes that ultimate losses that may result on account of these loans and advances and debts will depend upon the amount that would be realized in subsequent years.


Mar 31, 2012

1.1 Method of Accounting:

(a) The accounts have been prepared as per historical cost convention on an accrual basis except claims/refunds not ascertainable with reasonable certainty are accounted for on cash basis.

(b) Accounting policies not specifically referred to otherwise are consistent and consonance with generally accepted accounting principles followed by the Company.

(c) Company is providing for the export benefits on the cash basis.

1.2 Fixed Assets:

(a) Fixed assets are stated at their original cost including incidental expenditure related to acquisition and installation, less accumulated depreciation.

(b) Interest on loans taken for procurement of specific assets, accrued till such assets are put to use are charged to the profit and loss account.

(c) Indirect expenditure incurred during construction period to the extent to which the expenditure are incidental to construction is capitalized and apportioned to various fixed assets in proportion to their cost.

(d) Indirect expenditure incurred during the construction period related to the fixed assets not yet put to use remains pending for allocation in capital work in progress.

1.3 Depreciation:

(a) Depreciation is provided on straight-line method in accordance with the provision of section 205(2)(b) and at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

(b) Depreciation on fixed assets has been calculated on pro-rata basis with reference to the month in which the assets are put to use.

1.4 Inventories:

a) Finished goods are valued at cost or net realisable value whichever is lower.

1.5 Sales:

(a) Sale of goods is recognised on despatch and in accordance with the terms and conditions of the sale.

(b) Contract and Machinery Hire Charges are recognized on accrual basis.

1.6 Retirement Benefits:

Gratuity is accounted for on cash basis.

1.7 Foreign Exchange Fluctuation:

Current assets and liabilities in foreign currency outstanding at the close of the financial year are valued at the contracted exchange rate. The variation in value on account of fluctuation is accounted on cash basis.

1.8 Investments:

Investments are stated at cost.

1.9 Taxes and Income:

Income Tax expense for the year comprises of current tax, deferred tax and fringe benefit tax. Current Tax provision has been determined on the basis of relief, deductions, etc. available under the Income Tax Act, 1961, and deferred tax is accounted for by computing the tax effect of timing differences, which arise during the year and reversed in subsequent periods.


Mar 31, 2011

1.1 Method of Accounting:

(a) The accounts have been prepared as per historical cost convention on an accrual basis except claims/refunds not ascertainable with reasonable certainty are accounted for on cash basis.

(b) Accounting policies not specifically referred to otherwise are consistent and consonance with generally accepted accounting principles followed by the Company.

(c) Company is providing for the export benefits on the cash basis.

1.2 Fixed Assets:

(a) Fixed assets are stated at their original cost including incidental expenditure related to acquisition and installation, less accumulated depreciation.

(b) Interest on loans taken for procurement of specific assets, accrued till such assets are put to use are charged to the profit and loss account.

(c) Indirect expenditure incurred during construction period to the extent to which the expenditure are incidental to construction is capitalized and apportioned to various fixed assets in proportion to their cost.

(d) Indirect expenditure incurred during the construction period related to the fixed assets not yet put to use remains pending for allocation in capital work in progress.

1.3 Depreciation:

(a) Depreciation is provided on straight-line method in accordance with the provision of section 205(2)(b) and at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

(b) Depreciation on fixed assets has been calculated on pro-rata basis with reference to the month in which the assets are put to use.

1.4 Inventories:

a) Finished goods are valued at cost or net realisable value whichever is lower.

1.5 Sales:

(a) Sale of goods is recognised on despatch and in accordance with the terms and conditions of the sale.

(b) Contract and Machinery Hire Charges are recognized on accrual basis.

1.6 Retirement Benefits:

Gratuity is accounted for on cash basis.

1.7 Foreign Exchange Fluctuation:

Current assets and liabilities in foreign currency outstanding at the close of the financial year are valued at the contracted exchange rate. The variation in value on account of fluctuation is accounted on cash basis.

1.8 Interest on Fixed Deposit:

Accrued Interest on Fixed Deposit not provided on Fixed Deposit of Rs. 181858/-.

1.9 Investments:

Investments are stated at cost.

1.10 Taxes and Income:

Income Tax expense for the year comprises of current tax , deferred tax and fringe benefit tax . Current Tax provision has been determined on the basis of relief, deductions, etc. available under the Income Tax Act, 1961, and deferred tax is accounted for by computing the tax effect of timing differences, which arise during the year and reversed in subsequent periods.

2. Capital-work-in progress is for purchase of mining machineries as well as advance for construction and acquisition of immovable assets.

3. Contingent liabilities not provided for includes bank guarantee issued by State Bank if India NIL (previous year NIL).

4. The estimated amount of contract remaining to be executed on capital account and not provided for net of advance Rs. NIL (previous year - Rs. NIL).

5. There were no amount due and outstanding to be credited to investor Education and Protection fund.

6. Loans and advances, sundry debtors and sundry creditors are subject to confirmation by management.

7. Advances includes amount due from employees Rs.28,023/- .maximum outstanding during the year Rs.3, 38,023/-.

8. The Company has not provided for the diminution / appreciation in the value of long-term investment made since in the opinion of the management such diminution / appreciation in their value is temporary in nature considering the interest value and nature of the investments and invested assets.

9. (a) Sundry creditors include Rs.NIL (previous year Rs.NIL) due to small scale and ancillary undertakings.

(b) The above information has been determined to the extent such parties have been identified as small scale and ancillary undertaking on the basis of information available with the Company.

10. The company has loans & advances and debts recoverable from various firms and companies.

(a) In respect of advances aggregating to Rs.21509171/-, which are considered doubtful for recovery and for which Rs.13715861/- provision has been made.

(b) In respect of debts aggregating to Rs.10,38,442/-, which are considered bad / doubtful for recovery and for which Rs.9,38,442/- provision has been made.

(c) In respect of debt aggregating to NIL, outstanding from companies have been written off by the Company during the year, against the provision of Rs. NIL already made in earlier years.

(d) The company is taking all efforts including legal course to recover the amounts outstanding from the respective parties.

(e) The management believes that ultimate losses that may result on account of these loans and advances and debts will depend upon the amount that would be realized in subsequent years.

Notes :

1. Working of deferred taxes is based on assessment orders where assessments are completed and on return of income in other cases.

2. Provision for deferred taxes has been made at the tax rates that have been enacted or substantively enacted by the balance sheet date.


Mar 31, 2010

1.1 Method of Accounting:

(a) The accounts have been prepared as per historical cost convention on an accrual basis except claims/refunds not ascertainable with reasonable certainty are accounted for on cash basis.

(b) Accounting policies not specifically referred to otherwise are consistent and consonance with generally accepted accounting principles followed by the Company.

(c) Company is providing for the export benefits on the cash basis.

1.2 Fixed Assets:

(a) Fixed assets are stated at their original cost including incidental expenditure related to acquisition and installation, less accumulated depreciation.

(b) Interest on loans taken for procurement of specific assets, accrued till such assets are put to use are charged to the profit and loss account.

(c) Indirect expenditure incurred during construction period to the extent to which the expenditure are incidental to construction is capitalized and apportioned to various fixed assets in proportion to their cost.

(d) Indirect expenditure incurred during the construction period related to the fixed assets not yet put to use remains pending for allocation in capital work in progress.

1.3 Depreciation:

(a) Depreciation is provided on straight-line method in accordance with the provision of section 205(2)(b) and at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

(b) Depreciation on fixed assets has been calculated on pro-rata basis with reference to the month in which the assets are put to use.

1.4 Inventories:

a) Finished goods are valued at cost or net realisable value whichever is lower.

1.5 Sales:

(a) Sale of goods is recognised on despatch and in accordance with the terms and conditions of the sale.

(b) Contract and Machinery Hire Charges are recognized on accrual basis.

1.6 Retirement Benefits:

Gratuity is accounted for on cash basis.

1.7 Foreign Exchange Fluctuation:

Current assets and liabilities in foreign currency outstanding at the close of the financial year are valued at the contracted exchange rate. The variation in value on account of fluctuation is accounted on cash basis.

1.8 Interest on Fixed Deposit:

Accrued Interest on Fixed Deposit not provided on Fixed Deposit of Rs. 168459/-.

1.9 Investments:

Investments are stated at cost.

1.10 Taxes and Income:

Income Tax expense for the year comprises of current tax , deferred tax and fringe benefit tax . Current Tax provision has been determined on the basis of relief, deductions, etc. available under the Income Tax Act, 1961, and deferred tax is accounted for by computing the tax effect of timing differences, which arise during the year and reversed in subsequent periods.

2. Capital-work-in progress is for purchase of mining machineries as well as advance for construction and acquisition of immovable assets.

3. Contingent liabilities not provided for includes bank guarantee issued by State Bank if India NIL (previous year Rs.36.12 lakhs).

4. The estimated amount of contract remaining to be executed on capital account and not provided for net of advance Rs.Nil (previous year -Rs. Nil).

5. There were no amount due and outstanding to be credited to investor Education and Protection fund.

6. Loans and advances, sundry debtors and sundry creditors are subject to confirmation by management.

7. Advances includes amount due from employees Rs.38,023/- maximum outstanding during the year Rs.38,023/-.

8. The Company has not provided for the diminution / appreciation in the value of long-term investment made since in the opinion of the management such diminution / appreciation in their value is temporary in nature considering the interest value and nature of the investments and invested assets.

9. (a) Sundry creditors include Rs.Nil (previous year Rs.Nil/-) due to small scale and ancillary undertakings. (b) The above information has been determined to the extent such parties have been identified as small scale and ancillary undertaking on the basis of information available with the Company.

10. The company has loans & advances and debts recoverable from various firms and companies.

(a) In respect of advances aggregating to Rs.21509171/-, which are considered doubtful for recovery and for which Rs.13715861/- provision has been made.

(b) In respect of debts aggregating to Rs.938442/-, which are considered bad / doubtful for recovery and for which Rs.938442/- provision has been made.

(c) In respect of debt aggregating to Rs. 32,913/-, outstanding from companies have been written off by the Company during the year, against the provision of Rs. NIL already made in earlier years.

(d) The company is taking all efforts including legal course to recover the amounts outstanding from the respective parties.

(e) The management believes that ultimate losses that may result on account of these loans and advances and debts will depend upon the amount that would be realized in subsequent years.

 
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