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Accounting Policies of Shri Keshav Cements & Infra Ltd. Company

Mar 31, 2015

A) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition/installation less accumulated depreciation and modal. There are no intangible assets.

b) DEPRECIATION:

Depreciation on Fixed Assets has been calculated as per Schedule II of Companies Act, 2013.

c) INVENTORIES:

Items of Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of all cost of purchases, cost of conversion and other cost incurred in bringing them to their respective present location and condition (net of applicable CENVAT). The coke is valued at average price. The cost of semi finished and finished goods are valued at production cost.

d) INVESTMENTS:

There are no investments either long term or short term.

e) PROVISION FOR INCOME TAX:

In view of unabsorbed depreciation/ business loss carried from earlier years the income assessable under the Income Tax Act, is Rs.2,82,83,890/- However, provision for income tax of Rs. 83,70,000/- has been made.

f) REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sale of cement is exclusive of sales tax and inclusive of excise duty, sale of coke is exclusive sale tax, sale of diesel & petrol is tax free.

g) EXCISE DUTY:

Excise duty is paid on finished goods, on clearance of goods from factory premises.

h) SALES TAX DISPUTES:

Sales tax Assessments are completed up to the financial year 2012-13 Thereafter Self Assessments have been completed till 2013-14

i) EMPLOYEE BENEFITS:

Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefit likes salary, wages, and production incentives, and are recognized as expenses in the period in which the employee renders the related service.

Post employment benefits:

a) Defined contribution plans

The company has defined contribution plans for post employments benefits in the form of provident fund and ESI for all employees which are administered by the Regional Provident Fund Commissioner. They are classified as defined contribution plans as the company has no further obligation beyond making the contributions. The companies contributions to defined contribution plans are charged to Profit and Loss Account as and when incurred.

b) Funded Plan:

The Company has defined benefit plan for post employment benefit in the form of gratuity, which is administered by Life Insurance Corporation. Liability to the above defined benefit plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used measuring liability is Projected Unit Credit Method. The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account.

c) The Company has adopted the Accounting Standards (AS-15) on employee benefits, pursuant to which the amount worked out by the actuary has been charged to Profit and Loss Account.

j) CONTINGENT LIABILITIES:

Management reports, that there are no Contingent Liabilities.

k) REMUNERATION U/S 134:

Remuneration paid more than Rs. 5,00,000/- per month when employed for part of the year or Rs. 60,00,000/- per annum is NIL.

l) Consumption of imported Raw materials and components: NIL

m) C.I.F. Values of imports, Expenditures of Earning in Foreign Currency: NIL.

n) ACCOUNTING FOR TAXES OF INCOME: AS 22

The Company has during the year, in order to comply with mandatory Accounting Standards-22 issued by the Institute of Chartered Accountants of India, Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset/ liability is recognized and carried forward only to the extent that there is a reasonable/ virtual certainty that the asset will be realized or liability will be repaid in future. Company has recognized a net deferred tax liability of Rs. 5,62,09,687 /- in the Balance Sheet which comprises of Rs. 5,18,14,687/- relating to net deferred tax liability as on 1- 4-2014. Company has worked out net deferred tax liability of Rs. 43,95,000/- for the current year, towards timing differences.

p) AUDITORS REMUNERATION:

Audit Fees Rs. 54,000/- (including Tax & other professional work)

q) AS-17:

The Company is engaged in manufacture of ordinary Portland cement accordingly management reports that it is single segment industry. Therefore no other separate statement is made.


Mar 31, 2014

The Financial statements have been prepared in accordance with the applicable Accounting Standards under the Companies (Accounting Standards) Rules, 2006 and are based on the historical cost convention. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The Significant Accounting Policies followed are stated below:

a) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition/installation less accumulated depreciation and modvat. There are no intangible assets.

b) DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. The depreciation has been calculated on pro rata basis considering the month of acquisition/installations of the assets.

c) INVENTORIES:

Items of Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of all cost of purchases, cost of conversion and other cost incurred in bringing them to their respective present location and condition (net of applicable CENVAT). The coke is valued at average price. The cost of semi finished and finished goods are valued at production cost.

d) INVESTMENTS:

There are no investments either long term or short term.

e) PROVISION FOR INCOME TAX:

In view of unabsorbed depreciation/ business loss carried from earlier years the income assessable under the Income Tax Act, is Nil. However, a MAT provision of Rs. 68,20,259/- has been made.

f) REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sale of cement is exclusive of sales tax and inclusive of excise duty, sale of coke is exclusive sale tax, sale of diesel & petrol is tax free.

g) EXCISE DUTY:

Excise duty is paid on finished goods, on clearance of goods from factory premises.

h) SALES TAX DISPUTES:

Sales tax Assessments are completed up to the financial year 2006-07. Thereafter Self Assessments have been completed till 2012-13.

i) EMPLOYEE BENEFITS:

Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefit likes salary, wages, and production incentives, and are recognized as expenses in the period in which the employee renders the related service.

Post employment benefits:

a) Defined contribution plans

The company has defined contribution plans for post employments benefits in the form of provident fund and ESI for all employees which are administered by the Regional Provident Fund Commissioner. They are classified as defined contribution plans as the company has no further obligation beyond making the contributions. The companies contributions to defined contribution plans are charged to Profit and Loss Account as and when incurred.

b) Funded Plan:

The Company has defined benefit plan for post employment benefit in the form of gratuity, which is administered by Life Insurance Corporation. Liability to the above defined benefit plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used measuring liability is Projected Unit Credit Method. The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account.

c) The Company has adopted the Accounting Standards (AS-15) on employee benefits, pursuant to which the amount worked out by the actuary has been charged to Profit and Loss Account.

j) CONTINGENT LIABILITIES:

Management reports, that there are no Contingent Liabilities.

k) REMUNERATION U/S 217(1A):

Remuneration paid more than Rs. 5,00,000/- per month when employed for part of the year or Rs. 60,00,000/- per annum is NIL.

I) Consumption of imported Raw materials and components: NIL

m) C.I.F. Values of imports, Expenditures of Earning in Foreign Currency: NIL.

n) ACCOUNTING FOR TAXES OF INCOME: AS 22

The Company has during the year, in order to comply with mandatory Accounting Standards-22 issued by the Institute of Chartered Accountants of India, Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset/ liability is recognized and carried forward only to the extent that there is a reasonable/ virtual certainty that the asset will be realized or liability will be repaid in future. Company has recognized a net deferred tax liability of Rs. 5,18,14,687/- in the Balance Sheet which comprises of Rs. 4,07,54,687/- relating to net deferred tax liability as on 1 -4-2013. Company has wbrked out net deferred tax liability of Rs. 1,10,60,000/- for the current year, towards timing differences.

p) AUDITORS REMUNERATION:

Audit Fees Rs. 54,000/- (including Tax & other professional work)

q) AS-17:

The Company is engaged in manufacture of ordinary Portland cement accordingly management reports that it is single segment industry. Therefore no other separate statement is made.

r) NOTES ON ACCOUNTS:

i) The previous year''s figures have been reworked, regrouped, rearranged and re-classified wherever necessary.

ii) The sundry debtors, sundry creditors and advances are subject to Confirmation and are stated as per books.

ii) In the opinion of the Directors, current assets, loans and advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

iii) The unit is cement-manufacturing unit. During the year Company has manufactured cement. Company was also engaged in coke & Cement trading and petrol pump activities. The various quantity of raw material consumption and other inputs required for production of cement and consumption of electricity and other manufacturing expenses are highly technical in nature therefore; we have totally relied on the statement given by the management.

iv) Inventory valuation is as valued and certified by the management.

v) The previous year''s modvat balance brought forward is Rs. 4,24,053/- during the year Company has availed modvat credit of Rs. 73,91,859/- comprises of modvat credit on capital goods Rs. 14,65,510/- and modvat credit on raw material Rs. 49,44,007/-, and on Service Tax Rs. 9,82,342/-. The Company has deducted modvat credit of Rs. 15,22,838/- from the plant and machinery, Rs. 49,97,452/- from the raw materials and Rs. 9,56,239/- from the Service Tax. Balance amount of modvat of Rs. 3,39,383/-is carried forwarded.

vi) As per the guidance note issued by the Institute of Chartered Accountants of India the Company has worked out MAT credit of Rs. 2,36,42,879/- and it is shown under the head Loans and Advances as ''MAT Credit C/fd.''.

s) IMPAIRMENT OF ASSETS AS-28:

On the aspect of compliance of AS-28 on impairment of assets, the management asserts that its assets have not undergone by impairment. Therefore no provision is called for the impairment of assets.

t) BORROWING COSTS AS-16 :

There are no items of borrowing cost hence nothing is reportable.

u) RELATED PARTY DISCLOUSERS AS-18 :

It is reported by the management and as per the information and explanations given to us. In our verification of books of accounts there are related party transactions:

As per Accounting Standard (AS-18) "Related Party Disclosures" notified in the Companies (Accounting Standards) Rules 2006, the disclosures of transactions with the related as defined in AS-18 are given below:

I. Key Management Personnel

1. Mr. Venkatesh Katwa Chairman

2. Mr. Vilas H. Katwa Managing Director

3. Mr. Deepak Katwa Director

II. Relative of Key Management Personnel

1. Mr. H.D. Katwa

2. Mrs. N.H. Katwa

3. Mr. Y. M. Katwa HUF

4. Mr. P.G. Katwa HUF

III. Enterprises where key management personnel have significant influence

1. Katwa Finlease Limited

2. Katwa Infotech Limited

3. Katwa Construction Co. Ltd.

4. Katwa Oil Limited

5. Katwa Finance & Investment Co. Ltd.

6. Katwa Inc (100% subsidiary of Katwa Infotech Ltd)


Mar 31, 2013

The Financial statements have been prepared in accordance with the applicable Accounting Standards under the Companies (Accounting Standards) Rules, 2006 and are based on the historical cost convention. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The Significant Accounting Policies followed are stated below:

a) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition/installation less accumulated depreciation and modvat. There are no intangible assets.

b) DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. The depreciation has been calculated on pro rata basis considering the month of acquisition/installations of the assets.

c) INVENTORIES:

Items of Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of all cost of purchases, cost of-conversion and other cost incurred in bringing them to their respective present location and condition (net of applicable CENVAT). The coke is valued at average price. The cost of semi finished and finished goods are valued at production cost.

d) INVESTMENTS:

There are no investments either long term or short term.

e) PROVISION FOR INCOME TAX:

In view of unabsorbed depreciation/ business loss carried from earlier years the income assessable under the Income Tax Act, is Nil. However, a MAT provision of Rs. 74,04,152/- has been made.

f) REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sale of cement is exclusive of sales tax and inclusive of excise duty, sale of coke is exclusive sale tax, sale of diesel & petrol is tax free.

g) EXCISE DUTY:

Excise duty is paid on finished goods, on clearance of goods from factory premises.

h) SALES TAX DISPUTES:

Sales tax Assessments are completed up to the financial year 2006-07. Thereafter Sell Assessments have been completed till 2011-12.

i) EMPLOYEE BENEFITS:

Short term employee benefits: >

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefit likes salary, wages, and production incentives, and are recognized as expenses in the period in which the employee renders the related service.

Post employment benefits:

a) Defined contribution plans

The company has defined contribution plans for post employments benefits in the form of providenl fund and ESI for all employees which are administered by the Regional Provident Fund Commissioner. They are classified as defined contribution plans as the company has no further obligation beyond making the contributions. The companies contributions to defined contribution plans are charged to Profit and Loss Account as and when incurred.

b) Funded Plan:

The Company has defined benefit plan for post employment benefit in the form of gratuity, which is administered by Life Insurance Corporation. Liability to the above defined benefit plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used measuring liability is Projected Unit Credit Method. The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account.

c) The Company has adopted the Accounting Standards (AS-15) on employee benefits, pursuant to which the amount worked out by the actuary has been charged to Profit and Loss Account.

j) CONTINGENT LIABILITIES:

Management reports, that there are no Contingent Liabilities.

k) REMUNERATION U/S 217(1A):

Remuneration paid more than Rs.2,00,000/- per month when employed for part of the year or Rs. 24,00,000/- per annum is NIL.

1) Consumption of imported Raw materials and components: NIL

m) C.I.F. Values of imports, Expenditures of Earning in Foreign Currency: NIL.

n) ACCOUNTING FOR TAXES OF INCOME: AS 22

The Company has during the year, in order to comply with mandatory Accounting Standards-22 issued by the Institute of Chartered Accountants of India, Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset/ liability is recognized and carried forward only to the extent that there is a reasonable/ virtual certainty that the asset will be realized or liability will be repaid in future. Company has recognized a net deferred tax liability of Rs. 4,07,54,687/- in the Balance Sheet which comprises of Rs. 2,87,54,687/- relating to net deferred tax liability as on 1-4-2012. Company has worked out net deferred tax liability of Rs. 1,20,00,000/- for the current year, towards timing differences.

p) AUDITORS REMUNERATION:

Audit Fees Rs. 54,000/- (including Tax & other professional work)

q) AS-17:

The Company is engaged in manufacture of ordinary Portland cement accordingly management reports that it is single segment industry. Therefore no other separate statement is made.


Mar 31, 2012

The Financial statements have been prepared in accordance with the applicable Accounting Standards and relevant presentational requirement of the Companies Act, 1956 and are based on the historical cost convention. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The Significant Accounting Policies followed are stated below:

a) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition/installation less accumulated depreciation and modvat.

b) DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. The depreciation has been calculated on pro rata basis considering the month of acquisition/installations of the assets.

c) INVENTORIES:

Items of Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of all cost of purchases, cost of conversion and other cost incurred in bringing them to their respective present location and condition (net of applicable CENVATJ. The coke is valued at average price. The cost of semi finished and finished goods are valued at production cost.

d) INVESTMENTS:

There are no investments either long term or short term.

e) PROVISION FOR INCOME TAX:

In view of unabsorbed depreciation/ business loss carried from earlier years the income assessable under the Income Tax Act, is Nil However, a MAT provision of Rs. 46,62,420/- has been made.

f) REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sate of cement is exclusive of sales tax and inclusive of excise duty, sate of coke is exclusive sate tax, sale of diesel & petrol is tax free.

g) EXCISE DUTY:

Excise duty is paid on finished goods, on clearance of goods from factory premises.

h) SALES TAX DISPUTES:

Sales tax Assessments are completed up to the financial year 2006-07.

i) EMPLOYEE BENEFITS:

Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefit likes salary, wages, and production incentives, and are recognized as expenses in the period in which the employee renders the related service.

Post employment benefits:

a) Defined contribution plans

The company has defined contribution plans for post employments benefits in the form of provident fund and ESI for all employees which are administered by the Regional Provident Fund Commissioner. They are classified as defined contribution plans as the company has no further obligation beyond making the contributions. The companies contributions to defined contribution plans are charged to Profit and Loss Account as and when incurred

b) Funded Plan:

The Company has defined benefit plan for post employment benefit in the form of gratuity, which is

administered by Life Insurance Corporation. Liability to the above defined benefit plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used measuring liability is Projected Unit Credit Method The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account.

c ) The Company has adopted the Accounting Standards (AS-15] on employee benefits, pursuant to which the amount worked out by the actuary has been charged to Profit and Loss Account.

2. The above report is not certification under AS-15 revised 2005 read with Actuaries Act, 2006. It is simply a report generated to help companies for proper accounting of employee's liabilities.

j) CONTINGENT LIABILITIES:

Management reports, that there are no Contingent Liabilities.

k) REMUNERATION U/S 217(1A):

Remuneration paid more than Rs.2,00,000/- per month when employedfor part of the year or Rs. 24,00,000/ - per annum is NIL.

I) Consumption of imported Raw materials and components: NIL

m) C.I.F. Values of imports, Expenditures of Earning in Foreign Currency: NIL.

n) ACCOUNTING FOR TAXES OF INCOME: AS 22

The Company has during the year, in order to comply with mandatory Accounting Standards-22 issued by the Institute of Chartered Accountants of India, Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset/ liability is recognized and carried forward only to the extent that there is a reasonable/ virtual certainty that the asset will be realized or liability will be repaid in future. Company has recognized a net deferred tax liability of Rs. 2,87,54,687/- in the Balance Sheet which comprises ofRs. 2,28,70,387/- relating to net deferred tax liability as on 1-4-2011. Company has worked out net deferred tax liability of Rs. 58,84,300/- for the current year, towards timing differences. In order to give net effect in the Balance Sheet the Deferred tax asset has been transferred to deferred tax liability and Net deferred tax liability is shown in the Balance Sheet under head deferred tax liability.

p) AUDITORS REMUNERATION:

Audit Fees Rs. 35,000/-

q) AS-17:

The Company is engaged in manufacture of ordinary Portland cement accordingly management reports that it is single segment industry. Therefore no other separate statement is made.

r) NOTES ON ACCOUNTS:

i) The previous year's figures have been reworked, regrouped, rearranged and re-classified wherever necessary.

ii) The sundry debtors, sundry creditors and advances are subject to Confirmation and are stated as per books.

ii) In the opinion of the Directors, current assets, loans and advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

iii) The unit is cement-manufacturing unit. During the year Company has manufactured cement. Company was also engaged in coke & Cement trading and petrol pump activities. The various quantity of raw material consumption and other inputs required for production of cement and consumption of electricity and other manufacturing expenses are highly technical in nature therefore; we have totally relied on the statement given by the management.

iv) Inventory valuation is as valued and certified by the management.

v) Company has availed modvat credit of Rs. 61,22,000/-comprises of modvat credit on capital goods Rs. 16,10,396/- and modvat credit on raw material Rs. 45,11,604/-, The Company has deducted modvat credit of Rs. 16,10,396/- from the plant and machinery & Rs. 45,11,604/- from the raw materials. Balance amount of modvat of Rs. 3,69,543/-is carried forwarded it includes service tax.

vi) As per the guidance note issued by the Institute of Chartered Accountants of India the Company has worked out MAT credit of Rs. 94,18,468/- and it is shown under the head Loans and Advances as 'MAT Credit Entitlement'. *

s) IMPAIRMENT OF ASSETS AS-28:

On the aspect of compliance of AS-28 on impairment of assets, the management asserts that its assets have not undergone by impairment. Therefore no provision is called for the impairment of assets.

t) BORROWING COSTS AS-16 :

There are no items of borrowing cost hence nothing is reportable. .

u) RELATED PARTY DISCLOUSERS AS-18 :

It is reported by the management and as per the information and explanations given to us. In.our verification of books of accounts there are related party transactions:

As per Accounting Standard (AS-18) "Related Party Disclosures" notified in the Companies (Accounting Standards) Rules 2006, the disclosures of transactions with the related as defined in AS-18 are given below:

I. Key Management Personnel

1. Mr. Venkatesh Katwa Chairman

2. Mr. Vilas H. Katwa Managing Director

3. Mr. Deepak Katwa Director

II. Relative of Key Management Personnel

1. Mr. H.D. Katwa

2. Mrs. N.H. Katwa

3. Mr. Y. M. Katwa HUF

4. Mr. P.G Katwa HUF

III. Enterprises where key management personnel have significant influence

1. Katwa Finlease Limited

2. Katwa Infotech Limited

3. Katwa Construction Co. Ltd.

4. Katwa Oil Limited

5. Katwa Finance & Investment Co. Ltd.

6. Katwa Inc (100% subsidiary of Katwa Infotech Ltd) "

v) AMOUNT DUE TO MICRO SMALL AND MEDIUM ENTERPRISES: DISCLOSER UNDER MSMED ACT 2006

It is reported by the management that based on the information so far available with company up to 30th April, 2012 in respect of MSEs (as defined in "The Micro Small and Medium Enterprises Development Act 2006") the payments have been made to MSEs as per the terms and conditions of payments and on the agreed dates, hence interest provision is not made.


Mar 31, 2010

The Financial statements have been prepared in accordance with the applicable Accounting Standards and relevant presentational requirement of the Companies Act, 1956 and are based on the historical cost convention. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The Significant Accounting Policies followed are stated below:

a) FIXEDASSETS:

Fixed Assets are stated at cost of acquisition/installation less accumulated depreciation and mod vat.

b) DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. The depreciation has been calculated on pro rata basis considering the month of acquisition/installations of the assets.

c) INVENTORIES:

Items of Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of all cost of purchases, cost of conversion and other cost incurred in bringing them to their respective present location and condition (net of applicable CENVAT). The coke is valued at average price. The cost of semi finished and finished goods are valued at production cost.

d) INVESTMENTS:

There are no investments either long term or short term.

e) PROVISION FOR INCOME TAX:

In view of claim of depreciation under the Income Tax Act, the assessable income is loss. Hence the tax payable is NIL. However, a MAT provision of Rs. 20,00,000/- has been made.

f) REVENUE RECOGNITION:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sale of cement is exclusive of sales tax and excise duty, sale of coke is exclusive sale tax.

g) EXCISE DUTY:

Excise duty is paid on finished goods, on clearance of goods from factory premises.

h) SALES TAX DISPUTES:

Sales tax Assessments are completed up to the financial year 2006-07.

i. EMPLOYEE BENEFITS: Short term employee benefits:

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefit likes salary, wages, and production incentives, and are recognized as expenses in the period in which the employee renders the related service.

Post employment benefits:

a. Defined contribution plans.

The company has defined contribution plans for post employments benefits in the form of provident fund and ESI for all employees which are administered by the Regional Provident Fund Commissioner. They are classified as defined contribution p lans as the company has no further obligation beyond making the contributions. The companies contributions to defined contribution plans are charged to Profit and Loss Account as and when incurred.

b. Funded Plan:

The Company has defined benefit plan for post employment benefit in the form of gratuity, which is administered by Life Insurance Corporation. Liability to the above defined benefit plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used measuring liability is Projected Unit Credit Method. The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account.

C. The Company has adopted the Accounting Standards (AS-15) on employee benefits, pursuant to which the amount worked out by the actuary has been charged to Profit and Loss Account.

Note:

1. The report issued by LIC of India[P&GS] Dharwad for the year 2009-10, while verifying it appears that there is difference in present value obligations at the beginning of the year i.e., on 01-04-2009 and the closing balance as per the previous year certificate differs of Rs. 455878/- and Rs. 499783/-

2. The above report is not certification under AS-15 revised 2005 read with Actuaries Act, 2006. It is simply a report generated to help companies for proper accounting of employees liabilities.

j. CONTINGENT LIABILITIES:

Management reports, that there are no Contingent Liabilities.

k. REMUNERATION U/S 217(1 A):

Remuneration paid more than Rs.2,00,000/- per month when employed for part of the year or Rs. 24,00,000/- per annum is NIL.

L Consumption of imported Raw materials and components: NIL

m. CLE Values of imports, Expenditures of Earning in Foreign Currency: NIL.

n. ACCOUNTING FOR TAXES OF INCOME: AS 22

The Company has during the year, in order to comply with mandatory Accounting Standards-22 issued by the Institute of Chartered Accountants of India, Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset/ liability is recognized and carried forward only to the extent that there is a reasonable/ virtual certainty that the asset will be realized or liability will be repaid in future. Company has recognized a net deferred tax liability of Rs. 1,49,10,587/- in the Balance Sheet which comprises of Rs. 1,55,60,587/- relating to net deferred tax liability as on 1 -4-2009. Company has worked out net deferred tax asset of Rs. 6,50,000/- for the current year, towards timing differences i.e., of depreciation which has been credited to profit and loss appropriation Account under head deferred tax asset and debited to deferred tax asset. In order to give net effect in the Balance Sheet the Deferred tax asset has been transferred to deferred tax liability and Net deferred tax liability is shown in the Balance Sheet under head deferred tax liability.

Calculation of Deferred Tax Liability: -

Particulars of Deferred tax As on 1-4-2009 For the year As on Closing

liability 2009-10 31-03-2010

"Deferred Tax Asset 1,55,60,587 6,50,000 1,49,10,587 towards timing differnces"

u. AS-17:

The Company is engaged in manufacture of ordinary Portland cement accordingly management reports that it is single segment industry. Therefore no other separate statement is made.



 
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