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Accounting Policies of Shiva Cement Ltd. Company

Mar 31, 2015

Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified relevant provisions of the Companies Act, 2013.

Use of Estimates

Preparation of financial statements requires estimates and assumptions to be made that affects the reported amount of assets & liabilities on the date of financial statements and the reported amount of revenue 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.

Fixed Assets

Tangible Fixed Assets

Tangible Fixed Assets are stated at cost of acquisition net of recoverable taxes & duties. Cost of installations & development up to the date of commencement is capitalized. Pre-operative expenses have been apportioned to fixed assets on prorate basis.

Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.

Intangible Assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated depletion/ Amortization.

Depreciation & Amortization

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). As per management estimate, the useful life of most of the assets are different from those prescribed in Schedule II to the Companies Act, 2013. Hence, depreciation has been provided on these assets over their useful life as technically assessed, except the following assets:

Particulars Basis of Depreciation

Premium on leasehold land and mines : Over the period of leased term

Computers : Over its useful life as provided in Schedule-II

Deferred revenue expenses have been written off 1/10th during the year on pro-rata basis.

Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to profit & loss account in the year, in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

Investments

Investments are long term and are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

Inventories

Stock of finished goods and stock in process are valued at cost or net realizable value whichever is lower. Cost includes direct materials and labour and a proportion of overheads. Raw materials are valued at cost; Consumable stores & spares are valued at weighted average cost and by products are valued at net realizable value. Other inventories are valued at cost or net realizable value whichever is lower.

Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sales are recognized at the time of dispatch to consumers. Sales are shown at net of returns including excise duty, cess and sales tax on sales.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head " other income" in the statement of profit and loss.

Dividends

Dividend income is recognized when the company's right to receive dividend is established by the reporting date.

Employee Benefits

Employer 's contribution to employees state insurance and provident fund are charged to profit & loss account on accrual basis. Company provides gratuity benefits to employees. Value of obligation is determined based on valuation using the projected unit credit method. This recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measurement. Each unit is separate to build up the final obligation. Actuarial gain & losses are recognized in full during the period in which they occur in the statement of profit & loss.

Borrowing costs

Borrowing costs that are attributable to the acquisition/construction of concerned assets. These are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

Current and deferred tax

Tax expenses comprise both current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax is recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

Deferred Tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

Provisions, contingent liabilities & 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 the notes. Contingent assets are neither recognized nor disclosed in financial statements.

Segment Reporting

Company is cement manufacturing company dealing in cement and allied products. All activities of the company revolve around main business. As such there are no reportable segments as defined by accounting standard (AS)-17 (segment reporting) issued by the Institute of Chartered Accountants of India.

(ii) (a) Terms/rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs 2/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(ii) (b) Terms/rights attached to 9% Non Cumulative Redeemable Preference Shares

The company has only one class of Preference Shares. These shares carry non cumulative dividend @ 9% These NCRP Shares are redeemable in four installments by 2011-12 (out of which 40% has been redeemed) with an option to the holders & the company to mutually alter and vary the terms of these NCRP's before and after their allotment.

- Note - Public deposits includes Rs.15.73 Lakhs (Previous year Rs.7.82 Lakhs) from related parties. (iii) Details of Security and Terms of repayment of Loans are as under :

(a) The Term loan from Bank of Baroda is secured by the hypothecation of car Scorpio and personal guarantee of Directors (Mr. R.P.Gupta and Mr. Akash Gupta) as specified in the loan agreement executed on 15-11-2011. The loan is repayable in 48 EMI's of Rs.0.24 Lakhs each. It carries interest @ 12.5% (floating) p.a. The period of maturity as on Balance Sheet date is 8 months.

(b) The Term Loan from ICICI Bank Ltd carries interest @ 13.25% (floating) p.a. The loan is repayable in 23 EMI of Rs. 1.34 Lakh along with interest, from Oct, 2013. The loan is secured by first & exclusive charge on Vehicles, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 24/09/2013. The period of maturity as on Balance Sheet date is 5 months.

(c) The Term Loan from Canara Bank Ltd carries interest @ 14.20% (floating) p.a. The loan is repayable in 60 EMI's of 11.69 lacs including interest, from Jan, 2014. The loan is secured by EMT of lease hold land leased out by IDCO, Odisha in the name of company together with factory building/shed including staff quarters situated at Mouza - Goibhanga, Kalunga Industrial Estate, Sundergarh and personal guarantees of directors as per agreement dated 16/06/2014. The period of maturity as on Balance Sheet date is 4 years 9 months.

(d) Secured Term loan from Tata Capital Financial Services Ltd. :

Term Loan-1 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 6.83 Lakhs and last installment of Rs 6.83 Lakhs) along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipment's out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 2 years 15 days.

Term Loan-2 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 6.76 Lakhs and last installment of Rs 6.77 Lakhs along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipment's purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 2 years 15 days.

Term Loan-3 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 3.04 Lakhs and last installment of Rs 3.04 Lakhs along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipment's purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 2 years 15 days.

Term Loan-4 from Tata Capital Financial Services Ltd carries interest @ 15.5% (floating) p.a. The loan is repayable in 16 quarterly installments (15 installments of Rs. 3.77 Lakhs and last installment of Rs 3.77 Lakhs along with interest, from July, 2013. The loan is secured by first & exclusive charge on machineries/equipment's purchased/to be purchased out of the funds of term loan sanctioned, personal guarantees of directors and corporate guarantee of Unicon Merchants (P) Ltd as per agreement dated 11/09/2012. The period of maturity as on Balance Sheet date is 2 years 15 days.

(e) The Term Loan from IDBI Bank Ltd carries interest @ 13.75% (floating) p.a. The loan is repayable in 18 quarterly unequal installments as given below, excluding interest (Interest is repayable on 1st day of the succeeding month) from July 2015. The loan is secured by first charge on entire fixed assets of the company, both present and future, and on the leasehold rights of the existing limestone mines of the company at Khatkurbahal, Sundergarh, Odisha except for the specific assets charged to Tata Capital worth Rs. 5.64 Crores & second charge on the current assets including book debts, both present and future of the company, pledge of 5 lacs equity shares of the company in the name of directors and personal guarantee of directors as per agreement dated 06/08/2014. The period of maturity as on Balance Sheet date is 4 years 7 months.

Notes:

(ii) (a) The above working capital loan is secured against hypothecation of stocks and book debts of the company and second charge on entire movable and immovable fixed assets of the company, as per sanction letter dated 05th Feb, 2014. The loan is further secured by lien over fixed deposits of Rs. 55 lacs, pledge of 5 lacs equity shares by the promoters and personal guarantee of promoter directors of the company. The loan is repayable on demand and carries interest @ 15.25 % p.a.

Disclosure of Trade Payables under current liabilities is based on the information available with the company/firm regarding the status of suppliers as defined under the Micro, Small & Medium Enterprises Development Act, 2006. Amount overdue as on 31st March,2015 to Micro & Small Enterprises on account of Principal Amount Rs. Nil (Previous Year Rs.Nil) and interest Rs. Nil (Previous year Rs. Nil)


Mar 31, 2014

Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956.

Use of Estimates

Preparation of financial statements requires estimates and assumptions to be made that affects the reported amount of assets & liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

Fixed Assets

Fixed assets are stated at cost of acquisition net of recoverable taxes & duties. Cost of installations & development upto the date of commencement is capitalised. Pre-operative expenses have been apportioned to fixed assets on prorata basis.

Intangible Assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated depletion/amortization.

Depreciation & Amortization

Depreciation is provided on all depreciable assets on straight line method at the rates prescribed in schedule XIV of the Companies Act, 1956 as amended from time to time on prorata basis.

Deferred revenue expenses has been written off 1/10th during the year on prorata basis.

Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to profit & loss account in the year, in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

Investments

Investments are long term and are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

Inventories

Stock of finished goods and stock in process are valued at cost or net realisable value whichever is lower. Cost includes direct materials and labour and a proportion of overheads. Consumable stores & spares are valued at weighted average cost. Other inventories are valued at cost or net realisable value whichever is lower.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sales are recognised at the time of despatch to consumers. Sales are shown at net of returns including excise duty, cess and sales tax on sales.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

Dividends

Dividend income is recognized when the company''s right to receive dividend is established by the reporting date.

Employee Benefits

Employer''s contribution to employees state insurance and provident fund are charged to profit & loss account on accrual basis. Company provides gratuity benefits to employees. Value of obligation is determined based on valuation using the projected unit credit method. This recognises each period of service as giving rise to additional unit of employee benefit entitlement and measurement. Each unit is separate to build up the final obligation. Actuarial gain & losses are recognised in full during the period in which they occur in the statement of profit & loss.

Borrowing costs

Borrowing costs that are attributable to the acquisition/construction of concerned assets. These are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

Current and deferred tax

Provision for current tax is made after taking into consideration benefit admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from timing difference between taxable and accounting income is accounted for using the tax rate and loss that are enacted as on the balance sheet date. Deferred tax assets are recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

Provisions, contingent liabilities & contingent assets

Provisions involving substantial degree of estimation in measurement are recognised 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 recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in financial statements.

Segment Reporting

Company is cement manufacturing company dealing in cement and allied products. All activities of the company revolve around main business. As such there are no reportable segments as defined by accounting standard(AS)-17 (segment reporting) issued by the Institute of Chartered Accountants of India.


Mar 31, 2013

Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956.

Use of Estimates

Preparation of financial statements requires estimates and assumptions to be made that affects the reported amount of assets & liabilities on the date of financial statements and the reported amount of revenue 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.

Fixed Assets

Fixed assets are stated at cost of acquisition net of recoverable taxes & duties. Cost of installations & development up to the date of commencement is capitalized. Pre-operative expenses have been apportioned to fixed assets on prorate basis.

Intangible Assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated depletion/amortization.

Depreciation & Amortization

Depreciation is provided on all depreciable assets on straight line method at the rates prescribed in schedule XIV of the Companies Act, 1956 as amended from time to time on prorate basis.

Deferred revenue expenses has been written off 1/10th during the year on prorata basis.

Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to profit & loss account in the year, in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

Investments

Investments are long term and are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

Inventories

Stock of finished goods, and stock in process are valued at cost or net realizable value whichever is lower. Cost includes direct materials and labour and a proportion of overheads. Consumable stores & spares are valued at weighted average cost. Other inventories are valued at cost or net realizable value whichever is lower.

Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sales are recognized at the time of dispatch to consumers. Sales are shown at net of returns including excise duty, cess and sales tax on sales.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head other income in the statement of profit and loss.

Dividends

Dividend income is recognized when the company s right to receive dividend is established by the reporting date.

Employee Benefits

Employers contribution to employees state insurance and provident fund are charged to profit & loss account on accrual basis. Company provides gratuity benefits to employees. Value of obligation is determined based on valuation using the projected unit credit method. This recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measurement. Each unit is separate to build up the final obligation. Actuarial gain & losses are recognized in full during the period in which they occur in the statement of profit & loss.

Borrowing costs

Borrowing costs that are attributable to the acquisition/construction of concerned assets. These are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

Current and deferred tax

Provision for current tax is made after taking into consideration benefit admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from timing difference between taxable and accounting income is accounted for using the tax rate and loss that are enacted as on the balance sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

Provisions, contingent liabilities & 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 the notes. Contingent assets are neither recognized nor disclosed in financial statements.

Segment Reporting

Company is cement manufacturing company dealing in cement and allied products. All activities of the company revolve around main business. As such there are no reportable segments as defined by accounting standard(AS)-17 (segment reporting) issued by the Institute of Chartered Accountants of India.


Mar 31, 2012

Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956.

Use of Estimates

Preparation of financial statements requires estimates and assumptions to be made that affects the reported amount of assets & liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

Fixed Assets

Fixed assets are stated at cost of acquisition net of recoverable taxes & duties. Cost of installations & development upto the date of commencement is capitalised. Pre-operative expenses have been apportioned to fixed assets on prorata basis.

Intangible Assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated depletion/amortisation.

Depreciation & Amortisation

Depreciation is provided on all depreciable assets on straight line method at the rates prescribed in schedule XIV of the Companies Act, 1956 as amended from time to time on prorata basis.

Deferred revenue expenses has been written off 1/10th during the year on prorata basis.

Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to profit & loss account in the year, in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

Investments

Investments are long term and are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

Inventories

Stock of finished goods, and stock in process are valued at cost or net realisable value whichever is lower. Cost includes direct materials and labour and a proportion of overheads. Consumable stores & spares are valued at weighted average cost. Other inventories are valued at cost or net realisable value whichever is lower.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sales are recognised at the time of despatch to consumers. Sales are shown at net of returns including excise duty, cess and sales tax on sales.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

Dividends

Dividend income is recognized when the company's right to receive dividend is established by the reporting date.

Employee Benefits

Employer's contribution to employees state insurance and provident fund are charged to profit & loss account on accrual basis. Company provides gratuity benefits to employees. Value of obligation is determined based on valuation using the projected unit credit method. This recognises each period of service as giving rise to additional unit of employee benefit entitlement and measurement. Each unit is separate to build up the final obligation. Actuarial gain & losses are recognised in full during the period in which they occur in the statement of profit & loss.

Borrowing costs

Borrowing costs that are attributable to the acquisition/construction of concerned assets. These are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

Current and deferred tax

Provision for current tax is made after taking into consideration benefit admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from timing difference between taxable and accounting income is accounted for using the tax rate and loss that are enacted as on the balance sheet date. Deferred tax assets are recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

Provisions, contingent liabilities & contingent assets

Provisions involving substantial degree of estimation in measurement are recognised 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 recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in financial statements.

Segment Reporting

Company is cement manufacturing company dealing in cement and allied products. All activities of the company revolve around main business. As such there are no reportable segments as defined by accounting standard(AS)-17 (segment reporting) issued by the Institute of Chartered Accountants of India.

Shiva Cement Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. It's shares are listed on the Bombay stock exchange and Calcutta stock exchange. Company is engaged in the manufacturing and selling of cement & its allied products. Company caters to domestic markets.

(ii) (a) Terms/rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs 21- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.


Mar 31, 2011

1. Accounting Convention :-

The accounts are prepared under historical cost convention and in accordance with Generally Accepted Accounting Principles (GAAP), Accounting Standards issued by the Institute of Chartered Accountants of India and provisions of the Companies Act, 1956.

2. Significant Accounting Policies followed by the Company are :-

- The Company follows Mercantile system of accounting.

- The Company prepares its accounts on historical cost basis of accounting.

- Depreciation is provided on all depreciable assets on straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956 as amended from time to time on prorata basis.

- Deferred Revenue Expenses has been written off 1/10th during the year on prorata basis.

- Stock of finished goods and Stock in process are valued at cost or net realisable value whichever is lower. Consumable stores & spares are valued at weighted average cost. Other inventories are valued at cost or net realisable value whichever is lower.

- Fixed Assets are stated at cost of acquisition. The cost of Installations & development upto the date of commencement are capitalised. Pre-operative expenses have been apportioned to fixed assets on prorata basis.

- Investments are long term and are stated at cost.

- Employers contribution to Employees State Insurance and Provident Fund are charged to profit & loss account on accrual basis. However earned leave is accounted for on cash basis.

- Sales are recognised at the time of despatch to consumers. Sales are shown at net of returns including Excise duty, Cess and Sales tax on sales.

- Borrowing cost that are attributable to the acquisition/construction of concerned assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

- An asset is treated as Impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to Profit & Loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.


Mar 31, 2010

1. Accounting Convention:-

The accounts are prepared under historical cost convenion and in accordance with Generally Accepted Accounting Prinnciples (GAAP), Accounting Standards issued by the Institute of Chartered Accountants of India and provissions of hte Companies Act. 1956.

2. Significant Accounitng Pollicies followed by the Company are:-

a) The company follows Mercantile system of accounting.

b) The company prepared its accounts on historical cost basis of accounting.

c) Depreciation is provided on all depreciable assets on straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956 as amended from time to time on proata basis.

d) Deferred Revenue Expenses has been written off 1/10th furing the year on prorate basis.

e) Stock of finished goods, and Stook in process are valued at cost or ner realisable value whichever is lower. Consumable stores & spares are valued at weighted average cost. Other inventiories are valued at cost or net realisable vaue whichever is lower.

f) Fixed Assets are stated at cost of acquisition. The cost of Installations & development upto the date of commencement are capotalised. Pre-oprative expenses have been apportioned to fixed assets on prorata basis.

g) Investments are long term and are stated at cost.

h) Employers contribution to Employees State Insurance and Provident Fund are charged to profir & loss account on accrual basis. Hoerver earned leave is accunted for on chas basis.

i) Sales are recognised at the time to despatch to consumers. Sales are shown at net of retums including Excise duty, Cess and Sales tax on sales.

j) Borrowing cost that are attribuable to the acquisition/construction of concemed assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

k) As asset is treated as lmpired when the carrying cost of asset exceeds its recoverable vaule. An impairment loss is charged to Profit & Loss account in the year in which an asset is identified as lmpairment loss recognised in prior accounting period is reversed is reversed if there has been a change in the estimate of reconverable amount.

3. The Company is Cement maunfacturing Company dealing in Coment and allied products. All activities of the company revolve around main business, As such there are no repportble segments as defined by Accounting Standard (AS)-17 (Segment Reporting) issued by the Institute of Chartered Accounants of India.

 
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