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Accounting Policies of Unimin India Ltd. Company

Mar 31, 2014

A. Basis of Preparation of Financial Statements: The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956. The Company is following accrual basis of accounting on a going concern concept. Accounting policies are suitably disclosed as notes annexed to the Balance Sheet and Profit & Loss Account.

All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has not been able to clearly identify its operating cycle and thus it is assumed to be 12 months.

B. Use of Accounting Estimates: The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues 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.

C. Fixed Assets:- Fixed Assets are stated at cost of acquisition inclusive of all duties & taxes (Net of VAT), incidental expenses, erection/commissioning expenses and all the incidental expenses related to those fixed assets. The company is in the process of updating the fixed assets register.

D. Depreciation:- Depreciation on fixed assets have been provided on Straight Line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

E. Inventories:- Raw Materials & Stores are valued at cost, WIP are Valued at cost and Finished Goods are values at cost or net realizable value whichever is lower. Cost comprises of all costs of purchase, costs of conversion and other costs incurred in bringing the inventory to their present location and condition.

F. Impairment of Assets:- The carrying amounts of assets are reviewed at each balance sheet date to determine if there is any indication of impairment based on external / internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount, which represents the greater of the net selling price and ''value in use'' of the respective assets. The management is of the opinion that the recoverable values of assets are greater than carrying value, so impairment is not necessary.

G. Revenue Recognition:- Revenues and Expenditures of the Company are reckoned in the Current year based on the principle of "when the income & Expenditure accrue" instead of "to which period they relate". Job work charges & Interest are accounted on accrual basis.

H. Employee Retirement Benefits and other benefits: Contributions to defined contribution scheme such as Provident Fund, Employees Pension Scheme, are charged to the Profit & Loss Account as incurred.

The company has not provided for Defined benefit plans like gratuity as required under AS 15. The same are charged to Revenue in the year of availment.

Expenses on training, recruitment are charged to revenue in the year of incurrence.

Expenditure on leave travel concession to employees is recognized in the year of availment due to uncertainties of accrual. Leave encashment is provided on actual basis.

I. Borrowing Cost:- Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Other Costs are charged to Statement of Profit & Loss

J. Taxes on Income:- Provision for Current Income Tax is made on taxable income under the Income Tax Act, 1961. The Company has unabsorbed Depreciation and carried forward losses available for set off under the Income Tax Act, 1961. However, in view of inability to assess future taxable income, the extent of net deferred tax assets, which may be adjusted in the subsequent years, is not ascertainable with virtual certainty at this stage and accordingly the same has not been recog nized in these accounts on prudent basis.

K. Contingent Liabilities: These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts in respect of those contingencies, which are likely to materialize into liabilities after the year-end, till the finalization of accounts and have material effect on the position stated in the Balance Sheet.

L. Leases: Lease arrangements, where the risk and rewards incidental to the ownership of asset substantially vests with the lessor are recognized as operating lease. Assets taken on lease under operating leases are capitalized. Lease payments under operating leases are recognized as an expense in the Statement of Profit and Loss.

M. Contingencies and Event Occurring after the Balance Sheet Date: There are no contingencies and events after the Balance Sheet dates that affect the financial position of the company.

N. Net profit or loss for the period, prior period items and changes in accounting policies:

Revenue Statement does not contain any item materially affecting and having reference of prior period.

O. Prior period items and changes in accounting policies: Prior period items are disclosed separately in the profit and loss account so that their impact on current year''s profit can be known. The effect of change ip accounting policies is recognized in the year of change.


Mar 31, 2013

1) General

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2) Fixed Assets

All additions in fixed assets include freight, duties and incidential expenses.

3) Depreciation

Depreciation on Fixed Assets has been provided on straight-line method as per the classification and on the basis of Schedule-XIV to the Companies Act, 1956. Depreciation is charged on pro-rata basis from the date the asset is physically acquired up to the date on which such assets is sold, discarded,demolished or destroyed.

4) Inventories

Stocks of finished goods are valued at estimated cost or net realizable value, whichever is lower. The raw materials and other consumables on hand have been valued at cost. However, it has been devalued in current year.

5. Recognition of Income and Expenditure

Income and expenditure are recognized on accrual basis.

6. Gratuity

Gratuity is charged to revenue on the basis of provisions made as per the Payment of Gratuity Act. No actuarial valuations were conducted on this account. The company has not followed AS 15 - accounting for gratuity. The amount is not quantified.


Mar 31, 2012

1) General

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2) Fixed Assets

All additions in fixed assets include fre.ght, duties and incidental expenses.

3) Depreciation

Depreciation on Fixed Assets has been provided on straight-line method as per the classification and on the basis of Schedule-XIV to the Companies Act, 1956. Depreciation is charged on pro-rata basis from the date the asset is physically acquired up to the date on which such assets is sold, discarded,demolished or destroyed.

4) Inventories

Stocks of finished goods are valued at estimated cost or net realizable value, whichever is lower. The raw materials and other consumables on hand have been valued at cost. However, it has been devalued in current year.

5. Recognition of Income and Expenditure

Income and expenditure are recognized on accrual basis.

6. Gratuity

Gratuity is charged to revenue on the basis of provisions made as per the Payment of Gratuity Act. No actuarial valuations were conducted on this account. The company has not followed AS 15 - accounting for gratuity. The amount is not quantified.


Mar 31, 2010

1) General

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles. 2) Fixed Assets

In the financial year 2007-08, fixed Assets were revalued as per approved valuers certificate .All additions in fixed assets include freight, duties and incidential expenses.

3) Depreciation

Depreciation on Fixed Assets has been provided on straight-line method as per the classification and on the basis of Schedule-XIV to the Companies Act, 1956. Depreciation is charged on pro-rata basis from the date the asset is physically acquired up to the date on which such assets is sold, discarded, demolished or destroyed.

4) Inventories

Stocks of finished goods are valued at estimated cost or net realizable value, whichever is lower. The raw materials and other consumables on hand have been valued at cost.

5. Recognition of Income and Expenditure

Income and expenditure are recognized on accrual basis.

6. Gratuity

Gratuity is charged to revenue on the basis of provisions made as per the Payment of Gratuity Act. The company has not followed AS 15 - accounting for gratuity. The amount is not quantified.

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