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Accounting Policies of Rose Zinc Ltd. Company

Mar 31, 2014

A. BASIS OF PREPARATION OF FINANCIAL STATEMENT:-

The financial statements are prepared on historical cost convention basis in accordance with the generally accepted accounting principles and the accounting standards referred to in section 211 (3C) of the Companies Act, 1956.

B. RECOGNITION OF INCOME AND EXPENDITURE

The company generally follows mercantile system of accounting and recognizes significant items of Income & Expenditure on accrual basis except those sums which are not reasonably certain of realisation are recognized on cash basis.

C. FIXED ASSETS

The gross block of Fixed Assets is stated at cost of acquisition/ construction less CENVAT Credit available thereon, including indirect cost related to construction and interest and financial costs, if any, related to their acquisition/construction till such assets are put to use.

D. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure directly related to particular fixed assets are capitalised to those fixed assets. All indirect expenses are allocated to various fixed assets on reasonable basis. This is done once the construction and erection work is completed, pending which the accumulated amount is disclosed as Capital work-in-progress etc

E. IMPAIRMENT OF ASSETS

The carrying amount of assets are reviewed at each balance sheet date on value in use basis to assess whether they are recorded in excess of their estimated recoverable amount. If carrying value exceeds the estimated recoverable amount, assets are written down to their estimated recoverable amount.

F. DEPRECIATION

a. Depreciation on fixed assets is calculated at the rates specified in Schedule XIV of the Companies Act, 1956 on the Straight Line Method on assets which have been installed and put to use,

b. The cost of lease hold land has not been amortized over the period of the lease, since the lease is for a long period of 99 years intended to be renewed on the expiry of the stipulated period.

G. VALUATION OF INVENTORY

a. Raw Material including : at cost (on average cost basis) or net Processed Ash realisable value whichever is lower.

b. Stores & Spare Parts : at cost (on average cost basis) or net realisable value, whichever is lower.

c. Finished Goods : at cost or net realisable value, whichever is lower.

d. Goods in Process : at approximate cost of inputs and manufacturing cost depending on stage of completion.

e. Stock in Transit : at cost or net realisable value, whichever is lower.

H. RETIREMENT BENEFITS -

a. Contribution to Provident Fund are made on monthly basis and charged to revenue accordingly, if applicable.

b. Provision for encashment of leave is accounted for the arithmetical valuation on the assumption that such benefits are payable to all employees at the end of the financial year.

c. Provision of Gratuity is accounted for the arithmetical valuation on the assumption that such benefits are payable to all employees at the end of the financial year.

I. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted at exchange rates on the date of transactions takes place. Premium on forward cover contract in respect of import of raw materials is charged to Profit and Loss Account over the period of Contract. Amount payable and receivable in foreign currency as at the Balance Sheet date not covered by forward contracts are reinstated at the applicable exchange rates prevailing on that date. All exchange differences arising on revenue transactions, not covered by forward contracts, are charged to Profit and Loss Account.

J. TAXATION

Tax expense/ (Tax saving) is the aggregate of current year tax and deferred tax charged/ (or credited) to the Profit and Loss Account of the year.

a. Current tax is the provision made for income tax liability on the profits for the year ended 31st March, 2014 in accordance with the provisions of Income Tax Act, 1961.

b. The company has unabsorbed depreciations carried forward losses under Tax Laws. In absence of virtual certainty of sufficient future taxable income, net deferred Liability/Assets has not been recog-nized by way of prudence in accordance with Accounting Standard (AS-22) "Accounting for Taxes on Income" issued by the Insti-tute of Chartered Accountants of India.

K. BORROWING COSTS

Borrowing Cost are charged to revenue except in cases where costs relate to qualifying assets in which case such costs are capitalised as a part of cost of respective assets till the date they are put to their commercial use.

L. IMPORT OF RAW MATERIAL

Assessment of Custom Duty on imported raw material has been computed by custom department on provisional valuation basis and accounted in books of accounts accordingly, pending report of custom approved laboratory. Variations in custom duty, if any, are accounted for in the year of finalization.

Payments made against import of Raw Material and expenditure incurred towards this, but material not received at the factory site, has been considered as Advance against Raw Material.

M. EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the Company''s EPS comprises the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year.

N. CONTINGENT LIABILITIES

All liabilities have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts.

O. MISCELLANEOUS EXPENDITURE

Public Issue expenditure will be amortized over a period of ten years from the year 2000-2001 in which expansion has been completed.


Mar 31, 2013

A BASIS OF PREPARATION OF FINANCIAL STATEMENT:-

The financial statements are prepared on historical cost convention basis in accordance with the generally accepted accounting principles and the accounting standards referred to in section 211 (3C) of the Companies Act, 1956.

B. RECOGNITION OF INCOME AND EXPENDITURE

The company generally follows mercantile system of accounting and recognizes significant items of Income & Expenditure on accrual basis except those sums which are not reasonably certain of realisation are recognized on cash basis.

C. FIXED ASSETS

The gross block of Fixed Assets is stated at cost of acquisition/ construction less CENVAT Credit available thereon, including indirect cost related to construction and interest and financial costs, if any, related to their acquisition/construction till such assets are put to use.

D. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure directly related to particular fixed assets are capitalised to those fixed assets. All indirect expenses are allocated to various fixed assets on reasonable basis. This is done once the construction and erection work is completed, pending which the accumulated amount is disclosed as Capital work-in-progress etc.

E. IMPAIRMENT OF ASSETS

The carrying amount of assets are reviewed at each balance sheet date on value in use basis to assess whether they are recorded in excess of their estimated recoverable amount. If carrying value exceeds the estimated recoverable amoupt, assets are written down to their estimated recoverable amount.

F. DEPRECIATION

a. Depreciation on fixed assets is calculated at the rates specified in Schedule XIV of the Companies Act, 1956 on the Straight Line Method on assets which have been installed and put to use,

b. The cost of lease hold land has not been amortized over the period of the lease, since the lease is for a long period of 99 years intended to be renewed on the expiry of the stipulated period.

G. VALUATION OF INVENTORY

a. Raw Material including at cost (on average cost basis) or net realisable value, Processed Ash whichever is lower.

b. Stores & Spare Parts at cost (on average cost basis) or net realisable value, whichever is lower.

c. Finished Goods at cost or net realisable value, whichever is lower.

d. Goods in Process at approximate cost of inputs and manufacturing cost depending on stage of completion.

e. Stock in Transit at cost or net realisable value, whichever is lower.

f. The raw material consumed and the inventory of raw material are valued on the basis of purchase cost net of Excise Duty, therefore, CENVAT Credit in respect of raw material not consumed but lying in stock is shown in Balance Sheet as CENVAT Credit receivable under the head of Advances.

g. The Excise duty on stock of finished goods lying in bonded warehouse is included in valuation of closing stock of finished goods.

h. The Excise duty paid on stock of finished goods cleared but remained unsold has been treated as expenditure and included in valuation of closing stock of finished goods.

H. RETIREMENT BENEFITS

a. Contribution to Provident Fund are made on monthly basis and charged to revenue accordingly.

b. Provision for encashment of leave is accounted for the arithmetical valuation on the assumption that such benefits are payable to all employees at the end of the financial year.

c. Provision of Gratuity is accounted for the arithmetical valuation on the assumption that such benefits are payable to all employees at the end of the financial year.

I. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted at exchange rates on the date of transactions takes place. Premium on forward cover contract in respect of import of raw materials is charged to Profit and Loss Account over the period of Contract. Amount payable and receivable in foreign currency as at the Balance Sheet date not covered by forward contracts are reinstated at the applicable exchange rates prevailing on that date. All exchange differences arising on revenue transactions, not covered by forward contracts, are charged to Profit and Loss Account.

J. TAXATION

Tax expense/ (Tax saving) is the aggregate of current year tax and deferred tax charged/ (or credited) to the Profit and Loss Account of the year.

a. Current tax is the provision made for income tax liability on the profits for the year ended 31st March, 2013 in accordance with the provisions of Income Tax Act, 1961.

b. The company has unabsorbed depreciation & carried forward losses under Tax Laws. In absence of virtual certainty of sufficient future taxable income, net deferred Liability/Assets has not been recog-nized by way of prudence in accordance with Accounting Standard (AS- 22) "Accounting for Taxes on Income" issued by the Insti-tute of Chartered Accountants of India.

K. BORROWING COSTS

Borrowing Cost are charged to revenue except in cases where costs relate to qualifying assets in which case such costs are capitalised as a part of cost of respective assets till the date they are put to their commercial use.

L. IMPORT OF RAW MATERIAL

Assessment of Custom Duty on imported raw material has been computed by custom department bYi provisional valuation basis and accounted in books of accounts accordingly, pending report of custom approved laboratory. Variations in custom duty, if any, are accounted for in the year of finalization. Payments made against import of Raw Material and expenditure incurred towards this, but material not received at the factory site, has been considered as Advance against Raw Material.

M. EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the Company''s EPS comprises the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year.

N. CONTINGENT LIABILITIES

All liabilities have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts.

O. MISCELLANEOUS EXPENDITURE

Public Issue expenditure will be amortized over a period of ten years from the year 2000-2001 in which expansion has been completed.


Mar 31, 2012

A BASIS OF PREPARATION OF FINANCIAL STATEMENT: -

The financial statements are prepared on historical cost convention basis in accordance with the generally accepted accounting principles and the accounting standards referred to in section 211 (3C) of the Companies Act, 1956.

B. RECOGNITION OF INCOME AND EXPENDITURE

The company generally follows mercantile system of accounting and recognizes significant items of Income & Expenditure on accrual basis except those sums which are not reasonably certain of realisation are recognized on cash basis.

C. FIXED ASSETS

The gross block of Fixed Assets is stated at cost of acquisition/ construction less CENVAT Credit available thereon, including indirect cost related to construction and interest and financial costs, if any, related to their acquisition/construction till such assets are put to use.

D. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure directly related to particular fixed assets are capitalised to those fixed assets. All indirect expenses are allocated to various fixed assets on reasonable basis. This is done once the construction and erection work is completed, pending which the accumulated amount is disclosed as Capital work-in-progress etc.

E. IMPAIRMENT OF ASSETS

The carrying amount of assets are reviewed at each balance sheet date on value in use basis to assess whether they are recorded in excess of their estimated recoverable amount. If carrying value exceeds the estimated recoverable amount, assets are written down to their estimated recoverable amount.

F. DEPRECIATION

a. Depreciation on fixed assets is calculated at the rates specified in Schedule XIV of the Companies Act, 1956 on the Straight Line Method on assets which have been installed and put to use,

b. The cost of lease hold land has not been amortized over the period of the lease, since the lease is for a long period of 99 years intended to be renewed on the expiry of the stipulated period.

G. VALUATION OF INVENTORY

a. Raw Material including at cost (on average cost basis) or net realisable value, Processed Ash whichever is lower.

b. Stores & Spare Parts at cost (on average cost basis) or net realisable value,

whichever is lower.

c. Finished Goods at cost or net realisable value, whichever is lower.

d. Goods in Process at approximate cost of inputs and manufacturing cost

depending on stage of completion.

e. Stock in Transit at cost or net realisable value, whichever is lower.

f. The raw material consumed and the inventory of raw material are valued on the basis of purchase cost net of Excise Duty, therefore, CENVAT Credit in respect of raw material not consumed but lying in stock is shown in Balance Sheet as CENVAT Credit receivable under the head of Advances.

g. The Excise duty on stock of finished goods lying in bonded warehouse is included in valuation of closing stock of finished goods.

h. The Excise duty paid on stock of finished goods cleared but remained unsold has been treated as expenditure and included in valuation of closing stock of finished goods.

H. RETIREMENT BENEFITS

a. Contribution to Provident Fund are made on monthly basis and charged to revenue accordingly.

b. Provision for encashment of leave is accounted for the arithmetical valuation on the assumption that such benefits are payable to all employees at the end of the financial year.

c. The accruing liability of Gratuity is covered by Employees Group Gratuity Scheme of the Life Insurance Corporation of India and premium accounted for the year of as per actual liability to be paid at the end of the year.

I. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted at exchange rates on the date of transactions takes place. Premium on forward cover contract in respect of import of raw materials is charged to Profit and Loss Account over the period of Contract. Amount payable and receivable in foreign currency as at the Balance Sheet date not covered by forward contracts are reinstated at the applicable exchange rates prevailing on that date. All exchange differences arising on revenue transactions, not covered by forward contracts, are charged to Profit and Loss Account.

J. TAXATION

Tax expense/ (Tax saving) is the aggregate of current year tax and deferred tax charged/ (or credited) to the Profit and Loss Account of the year.

a. Current tax is the provision made for income tax liability on the profits for the year ended 31st March, 2012 in accordance with the provisions of Income Tax Act, 1961.

b. Deferred tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statements and in estimating its current income tax provision.

c. Deferred tax assets are recognized only to the extent that there is virtual certainty supported by convincing evidence and to the extent that there is reasonable certaintity of their realization.

d. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the Balance Sheet date.

K. BORROWING COSTS

Borrowing Cost are charged to revenue except in cases where costs relate to qualifying assets in which case such costs are capitalised as a part of cost of respective assets till the date they are put to their commercial use.

L. IMPORT OF RAW MATERIAL

Assessment of Custom Duty on imported raw material has been computed by custom department on provisional valuation basis and accounted in books of accounts accordingly, pending report of custom approved laboratory. Variations in custom duty, if any, are accounted for in the year of finalization. Payments made against import of Raw Material and expenditure incurred towards this, but material not received at the factory site, has been considered as Advance against Raw Material.

M. EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the Company''s EPS comprises the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year.

N. CONTINGENT LIABILITIES

All liabilities have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts.

0. MISCELLANEOUS EXPENDITURE

Public Issue expenditure will be amortized over a period of ten years from the year 2000-2001 in which expansion has been completed.

 
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