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Accounting Policies of Trinetra Cement Ltd. Company

Mar 31, 2015

1.1 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

1.2 Fixed Assets

(a) Fixed assets are stated at cost of acquisition or construction. All costs including financing and applicable overheads incurred on specific projects are capitalised.

(b) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and put into commercial operation.

(c) Depreciation on fixed assets is provided in the following manner:

(i) Depreciation on fixed assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). Depreciation is provided on useful life of the assets as prescribed in Schedule II of the Companies Act, 2013, except in respect of assets installed in the premises of Third Party on licence to use basis and is depreciated over the term of the licence/agreement

(ii) Depreciation on additions is provided on pro rata basis for the period for which assets are put to use.

(iii) Assets costing less than Rs.5000 are fully depreciated in the year of purchase.

(iv) Leasehold land is not amortised.

(v) Fixed assets are tested for impairment and impairment loss, if any, is charged to the Profit and Loss Account.

1.3 Sale / Turnover includes sale value of goods and excise duty thereon but excludes VAT recovered.

1.4 Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process (WIP) & Semi-finished goods are valued at cost or net realisable value whichever is lower. The value of WIP and Semi-finished goods does not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

1.5 Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are capitalised upto the end of the month in which such assets are put into commercial operation. Other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

1.6 Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted on cash basis.

1.7 Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis. Unavailed leave balances are accounted based on respective employee's earnings as at the Balance sheet date.

1.8 Foreign Currency Transactions

Foreign exchange transactions, on current account, are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Current assets and liabilities in foreign currencies are translated at values prevailing as at the Balance sheet date. Gains/ losses, if any, arising therefrom are recognised in the Statement of Profit & loss.


Mar 31, 2014

1.1 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.2 Fixed Assets

(a) Fixed assets are stated at cost of acquisition or construction. All costs including financing and applicable overheads incurred on specific projects are capitalised.

(b) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and put into commercial operation.

(c) Depreciation on fixed assets is provided in the following manner:

(i) The Company provides depreciation on written down value method for Zinc division assets and Motor Vehicles.

(ii) Software development costs are capitalised and depreciated along with computers on Straight Line method as per Section 205(2)(b) of the Companies Act, 1956.

(iii) For all other assets Straight Line method as per Section 205(2)(b) of the Companies Act, 1956 is adopted.

(iv) Depreciation on additions is provided on pro rata basis for the period for which assets are put to use.

(v) Assets costing less than Rs.5000 are fully depreciated in the year of purchase.

(vi) Leasehold land is not amortised.

(vii) Fixed assets are tested for impairment and impairment loss, if any, is charged to the Profit and Loss Account.

1.3 Sale / Turnover includes sale value of goods and excise duty thereon but excludes VAT recovered.

1.4 Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process (WIP) & Semi-finished goods are valued at cost or net realisable value whichever is lower. The value of WIP and Semi-finished goods does not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

1.5 Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the end of the month in which such assets are put into commercial operation. Other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

1.6 Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted on cash basis.

1.7 Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis. Unavailed leave balances are accounted based on respective employee''s earnings as at the Balance Sheet date.

1.8 Foreign Currency Transactions

Foreign exchange transactions, on current account, are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Current assets and liabilities in foreign currencies are translated at values prevailing as at the Balance Sheet date. Gains / losses, if any, arising therefrom are recognised in the Statement of Profit & Loss.


Mar 31, 2013

1.1 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.2 Fixed Assets

(a) Fixed assets are stated at cost of acquisition or construction. All costs including financing and applicable overheads incurred on specific projects are capitalised.

(b) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and put into commercial operation.

(c) Depreciation on fixed assets is provided in the following manner:

(i) The Company provides depreciation on written down value method for Zinc division assets and Motor Vehicles.

(ii) Software development costs are capitalised and depreciated along with computers on Straight Line method as per Section 205(2)(b) of the Companies Act, 1956.

(iii) For all other assets Straight Line method as per Section 205(2)(b) of the Companies Act, 1956 is adopted.

(iv) Depreciation on additions is provided on pro rata basis for the period for which assets are put to use.

(v) Assets costing less than Rs.5000 are fully depreciated in the year of purchase.

(vi) Leasehold land is not amortised.

(vii) Fixed assets are tested for impairment and impairment loss, if any, is charged to the Profit and Loss Account.

1.3 Sale / Turnover includes sale value of goods and excise duty thereon but excludes VAT recovered.

1.4 Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process (WIP) & Semi-finished goods are valued at cost or net realisable value whichever is lower. The value of WIP and Semi-finished goods does not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

1.5 Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are capitalised upto the end of the month in which such assets are put into commercial operation. Other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

1.6 Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted on cash basis.

1.7 Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis. Unavailed leave balances are accounted based on respective employee''s earnings as at the balance sheet date.

1.8 Foreign Currency Transactions

Foreign exchange transactions, on current account, are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Current assets and liabilities in foreign currencies are translated at values prevailing as at the balance sheet date. Gains/losses, if any, arising therefrom are recognised in the Statement of Profit & Loss.


Mar 31, 2012

1.1 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

1.2 Fixed Assets

(a) Fixed assets are stated at cost of acquisition or construction. All costs including financing and applicable overheads incurred on specific projects are capitalised.

(b) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and put into commercial operation.

(c) Depreciation on fixed assets is provided in the following manner:

(i) The Company provides depreciation on written down value method for Zinc division assets and Motor Vehicles.

(ii) Software development costs are capitalised and depreciated along with computers on Straight Line method as per Section 205(2)(b) of the Companies Act, 1956.

(iii) For all other assets Straight Line method as per Section 205(2)(b) of the Companies Act, 1956 is adopted.

(iv) Depreciation on additions is provided on pro rata basis for the period for which assets are put to use.

(v) Assets costing less than Rs.5000 are fully depreciated in the year of purchase.

(vi) Leasehold land is not amortised.

(vii) Fixed assets are tested for impairment and impairment loss, if any, is charged to the Profit and Loss Account.

1.3 Sale / Turnover includes sale value of goods and excise duty thereon but excludes VAT recovered.

1.4 Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process (WIP) & Semi-finished goods are valued at cost or net realisable value whichever is lower. The value of WIP and Semi-finished goods does not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

1.5 Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are capitalised upto the end of the month in which such assets are put into commercial operation. Other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

1.6 Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted on cash basis.

1.7 Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis. Unavailed leave balances are accounted based on respective employee's earnings as at the balance sheet date.

1.8 Foreign Currency Transactions

Foreign exchange transactions, on current account, are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Current assets and liabilities in foreign currencies are translated at values prevailing as at the balance sheet date. Gains/losses, if any, arising there from are recognised in the Profit & Loss Account.


Mar 31, 2010

I. Basis of preparation of financial statements:

The financial statements are prepared under the historical cost convention on the accrual basis of accounting, unless otherwise stated, in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act 1956 and the applicable accounting standards.

II. Use of Estimates:

The preparation of financial statements requires estimates and assumptions. Differences between the estimates and actual results are recognised in the period in which the same are known.

ill. Fixed Assets:

a) Fixed assets are stated at cost of acquisition or construction and include proportionate amount of expenditure during construction capitalised to respective assets.

b) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and commissioned. Capital works-in-progress include capital advances paid, machinery under installation/ in transit, construction and erection materials (including those lying with contractors).

Iv. Depreciation:

a) Depreciation on fixed assets of Zinc division is provided on written down value (WDV) method and in the manner provided in schedule XIV to the Companies Act, 1956. Depreciation on additions is provided on pro-rata basis for the period for which the assets are put to use.

b) Depreciation on fixed assets of Cement division is provided on straight-line basis and in the manner provided in schedule XIV to the Companies Act, 1956. Depreciation on additions is provided on pro-rata basis for the period for which the assets are put to use.

c) Assets costing less than Rs. 5000 are fully depreciated in the year of purchase.

d) Leasehold land is not amortised. v. Impairment of Assets:

An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use.

vi. Foreign Exchange Transactions:

Foreign exchange transactions are recorded at the exchange rates prevailing on the date of transaction and net loss or gain arising on settlement of transaction is adjusted to profit and loss account.

vii. Valuation of inventory:

a) Raw materials are valued at cost on FIFO basis. Cost includes incidental expenses such as freight, transport and clearing charges.

b) Stores & spare parts are valued at cost.

c) Finished goods are valued at cost or market value whichever is lower.

d) Goods in process are valued at cost or net realisable value whichever is lower. viii. Sales/ Turnover:

Sales/ Turnover include sale value of goods and excise duty thereon but exclude VAT recovered.

ix. Excise duty and Cenvat Credits:

Sales and purchases (other than those of capital goods) are stated inclusive of excise duty. Cenvat credits relating to capital goods are reduced from the value of the capital goods.

x. Retirement benefits:

None of the employees of the company was entitled to any retirement benefit at the end of the current year.



 
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