Accounting Policies of Alfa Ica (India) Ltd. Company

Mar 31, 2015

I Basis of Preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on an accrual basis of accounting in accordance with generally accepted accounting principles in India and are to comply with the applicable accounting standards notified under section 133 of the Companies Act, 2013. The accounting policies have been consistently applied unless otherwise stated.

ii Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of incomes and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which results are known or materialised.

iii. Valution of Inventories

The inventory has been valued as under :

(a) Raw materials, stores and spares are valued at cost.

(b) Work in progress and finished goods are valued at lower of cost and net realisable value.

iv. Depreciation

Depreciation on fixed assets is provided on Stright line method as per schedule II of the Companies Act, 2013 on the basis of period for which assets used in reporting period. Necessary amounts have been adjusted against surplus to comply with provisions of Schedule II of the Act.

v. Revenue Recognition

Sale of goods is recognised at the point of dispatch of finished goods to the customers. Sale is inclusive of excise duty and VAT. Export incentives are accounted for in the year of exports based on eligibility and when there is no uncertainity in receiving the same. Interest income is recognised on time proportion basis.

vi. Fixed Assets

Fixed assets are recognised at cost of acquisition including expenditure up to the date of commissioning, net of CENVAT or VAT less accumulated depreciation, amortisation and impairment loss. The cost of fixed assets not ready for their intended use before balance sheet date are disclosed under capital work-in-progress.

vii. Government Grants

Government grants for Project Capital Subsidy are credited to Capital Reserve.

viii. Foreign Currency Transaction

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.

(b) Any income or expense on account of exchange difference either on settlement or on traslations recognised in the statement of profit and loss except fixed assets acquisition in which they are adjusted to the carrying cost of such assets.

ix. Investments

Investments are classified as long term or current based on management intention at the time of purchase. Long term quoted investments are stated at cost after deducting provisions made, if any for permanent dimunitions i.e. other than temporary dimunition in value. Long term unquoted investments are stated at cost of acquisition. Current Investments are stated at lower of cost and fair value.

x. Retirement Benefits

Liability for gratuity is accounted on cash basis. The company does not provide for gratuity payable to employees as per the provisions of AS-15, "Employee Benefits"

xi. Borrowing Costs

Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to acquisition or construction of qualifying assets are capitalised up to the date when such fixed assets are ready for their intended use and all other borrowing costs are charged to statement of profit and loss.

xii. Provision for taxation

Provision for income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing difference" between book and taxable income is accounted for using tax rated and tax laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised only to the extent that there is a reasonable certainity that the future taxable profit will be available against which the deferred tax assets can be realised.

xiii. Provisions and contingencies

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the balance sheet date.

Contingent liabilities are not recognised but are disclosed as a part of notes to accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2014

I. Basis of preparation of Financial Statements:

The financial statements are prepared and presented under the historical cost convention on an accrual basis of accounting in accordance with generally accepted accounting principles in India and are to comply with the applicable accounting standards notified under Section 211 (3C) of the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 read with the general circular 15/2013 dated 13th September,2013 of the Ministry of Corporate Affairs in respect of the Companies Act,2013. The accounting policies have been consistently applied unless otherwise stated.

ii. Use of Estimates:

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of incomes and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known or materialise.

iii. Valuation of Inventories:

The Inventory has been valued as under:

a) Raw Materials, Stores and Spares are valued at cost.

b) Work in progress and finished goods are valued at lower of cost and net realisable value.

iv. Depreciation:

Depreciation on Fixed Assets is provided on Straight Line method at the rates specified in Schedule XIV of the Companies Act, 1956 on full year basis.

v. Revenue Recognition:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sale is inclusive of excise duty and VAT. Export incentives are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same. Interest income is recognised on time proportion basis.

vi. Fixed Assets

Fixed assets are recognized at cost of acquisition including expenditure up to the date of commissioning, net of Cenvat or VAT less accumulated depreciation, amortization and impairment loss. The costs of fixed assets not ready for their intended use before balance sheet date are disclosed under capital work-in-progress.

vii. Government Grants:

Government grants for Project Capital Subsidy are credited to Capital Reserve.

viii. Foreign Currency Transactions:

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.

b) Any income or expense on account of exchange difference either on settlement or on translations recognised in the statement of Profit and Loss except Fixed Assets acquisition in which they are adjusted to the carrying cost of such assets.

ix. Investments:

Investments are classified as long term or current based on management intention at the time of purchase. Long Term Quoted Investments are stated at cost after deducting provisions made, if any, for permanent diminutions i.e. other than temporary diminution in value. Long Term Unquoted Investments are stated at cost of acquisition. Current Investments are stated at lower of cost and fair value.

x. Retirement Benefits:

Liability for Gratuity is accounted on cash basis.

xi. Borrowing Costs:

Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to acquisition or construction of qualifying assets are capitalised up to the date when such fixed assets are ready for their intended use and all other borrowing costs are charged to statement of Profit and Loss.

xii. Provision for Taxation:

Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using tax rates & tax laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized only to the extent that there is a reasonable certainty that the future taxable profit will be available against which the deferred tax assets can be realized.

xiii. Provisions and Contingencies:

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance sheet date.

Contingent Liabilities are not recognised but are disclosed as a part of notes to accounts. Contingent Assets are neither recognised nor disclosed, in the financial statements.

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Mar 31, 2013

I. Basis of preparation of Financial Statements:

The financial statements are prepared and presented under the historical cost convention on an accrual basis of accounting in accordance with generally accepted accounting principles in India and are to comply with the applicable accounting standards notified under Section 211 (3C) of the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied unless otherwise stated.

ii. Use of Estimates:

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of incomes and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known or materialise.

iii. Valuation of Inventories:

The Inventory has been valued as under:

a) Raw Materials, Stores and Spares are valued at cost.

b) Work in progress and finished goods are valued at lower of cost and net realisable value.

iv. Depreciation:

Depreciation on Fixed Assets is provided on Straight Line method at the rates specified in Schedule XIV of the Companies Act, 1956 on full year basis.

v. Revenue Recognition:

Sale of goods is recognized at the point of dispatch of finished goods to the customers. Sale is inclusive of excise duty and VAT. Export incentives are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same. Interest income is recognised on time proportion basis.

vi. Fixed Assets

Fixed assets are recognized at cost of acquisition including expenditure up to the date of commissioning, net of Cenvat or VAT less accumulated depreciation, amortization and impairment loss. The costs of fixed assets not ready for their intended use before balance sheet date are disclosed under capital work-in-progress.

vii. Government Grants:

Government grants for Project Capital Subsidy are credited to Capital Reserve. viii. Foreign Currency Transactions:

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.

b) Any income or expense on account of exchange difference either on settlement or on translations recognised in the statement of Profit and Loss except Fixed Assets acquisition in which they are adjusted to the carrying cost of such assets.

ix. Investments:

Investments are classified as long term or current based on management intention at the time of purchase. Long Term Quoted Investments are stated at cost after deducting provisions made, if any, for permanent diminutions i.e. other than temporary diminution in value. Long Term Unquoted Investments are stated at cost of acquisition. Current Investments are stated at lower of cost and fair value.

x. Retirement Benefits:

Liability for Gratuity is accounted on cash basis.

xi. Borrowing Costs:

Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to acquisition or construction of qualifying assets are capitalised up to the date when such fixed assets are ready for their intended use and all other borrowing costs are charged to statement of Profit and Loss.

xii. Provision for Taxation:

Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using tax rates & tax laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized only to the extent that there is a reasonable certainty that the future taxable profit will be available against which the deferred tax assets can be realized.

xiii. Provisions and Contingencies:

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance sheet date.

Contingent Liabilities are not recognised but are disclosed as a part of notes to accounts. Contingent Assets are neither recognised nor disclosed, in the financial statements.

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Mar 31, 2011

1. Basis of preparation of Financial Statements:

The financial statements have been prepared and presented on an accrual basis under the historical cost convention and in accordance with the applicable accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied unless otherwise stated.

2. Use of Estimates:

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities as at the date of the financial statements and the reported amounts of incomes and expenses during the year. Difference between the actual results and estimates are recognised in the period in which the results are known.

3. Valuation of Inventories:

The Inventory has been valued as under:

a) Raw Materials, Stores and Spares are valued at cost.

b) Work in progress includes cost of conversion and other costs incurred in bringing the inventories to their present location and conditions.

c) Finished goods are valued at lower of cost and Net Realizable Value.

4. Depreciation:

Depreciation on Fixed Assets is provided on straight Line method at the rates specified in Schedule XIV of the Companies Act, 1956 on full year basis.

5. Revenue Recognition:

a) Sales are recognised on dispatch of goods to customers and represents amount invoiced, inclusive of excise duty and sales tax.

b) To account for all purchases exclusive of excise duty, as duty paid on all inputs is monitored through a distinct account.

c) Insurance claims are accounted for as and when admitted by the appropriate authorities.

d) The benefits in respect of Advance Licenses/ Credit in Pass Book scheme received by the Company against export made by it are recognised as and when goods are imported against them or the Advance Licenses are sold, as the case may be.

e) Interest income is recognised on time proportion basis.

6. Fixed Assets

a) Fixed Assets are stated at cost less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and conditions.

b) The Company availed CENVAT benefit on Fixed Assets.

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalized as part of the cost of machinery.

d) Fixed assets are eliminated from financial statements on disposal. The Capitalised cost of such disposed assets are removed from the fixed asset records.

e) Expenditure during the construction period is included under Capital Work in Progress and the same is allocated to the respective fixed assets on the completion of its construction.

7. Government Grants:

Government grants for Project Capital Subsidy are credited to Capital Reserve.

8. Foreign Currency Transactions:

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of transaction.

b) Any income or expense on account of exchange difference either on settlement or on translations recognised in the Profit and Loss Account except Fixed Assets acquisition in which they are adjusted to the carrying cost of such assets.

9. Investments:

Investments are classified as long term or current based on management intention at the time of purchase.

Long Term Quoted Investments are stated at cost after deducting provisions made, if any, for permanent diminutions i.e. other than temporary diminution in value.

Long Term Unquoted Investments are stated at cost of acquisition.

Current Investments are stated at lower of cost and fair value.

10. Retirement Benefits:

Liability for Gratuity is accounted on cash basis.

11. Borrowing Costs:

Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to acquisition or construction of qualifying assets are capitalized up to the date when such fixed assets are ready for their intended use and all other borrowing costs are charged to Profit and Loss Account.

12. Provision for Taxation:

Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

The Deferred Tax resulting from timing difference between book and taxable profit is accounted for using tax rates & tax laws that have been enacted or substantively enacted as at the Balance Sheet date.

13. Provisions and Contingencies:

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance sheet date.

Contingent Liabilities are not recognised but are disclosed as a part of notes to accounts. Contingent Assets are neither recognised nor disclosed, in the financial statements.

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Mar 31, 2010

1. Basis of preparation of Financial Statements:

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India and comply in all material aspects with the Accounting Standards (AS) notified under the Companies (Accounting Standards) Rules, 2006 (as amended), other pronouncements of Institute of Chartered Accountants of India, the relevant provisions of the Companies Act, 1956.

2. Use of Estimates:

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities as at the date of the financial statements and the reported amounts of incomes and expenses during the year. Difference between the actual results and estimates are recognised in the period in which the results are known.

3. Valuation of Inventories:

The Inventory has been valued as under:

a) Raw Materials, Stores and Spares are valued at cost.

b) Work in progress includes cost of conversion and other costs incurred in bringing the inventories to their present location and conditions.

c) Finished goods are valued at lower of cost and Net Realisable Value.

4. Depreciation:

Depreciation on Fixed Assets is provided on straight Line method at the rates specified in Schedule XIV of the Companies Act, 1956 on full year basis.

5. Revenue Recognition:

a) Sales are recognised on dispatch of goods to customers and represents amount invoiced, inclusive of excise duty sales tax.

b) To account for all purchases exclusive of excise duty, as duty paid on all inputs is monitored through a distinct account.

c) Insurance claims are accounted for as and when admitted by the appropriate authorities.

d) The benefits in respect of Advance Licenses/ Credit in Pass Book scheme received by the Company against export made by it are recognised as and when goods are imported against them or the Advance Licenses are sold, as the case may be.

e) Interest income is recognised on time proportion basis.

6. Fixed Assets:

a) Fixed Assets are stated at cost less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and conditions.

b) The Company availed CENVAT benefit on Fixed Assets.

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalised as part of the cost of machinery.

d) Fixed assets are eliminated from financial statements on disposal. The Capitalised cost of such assets disposed assets are removed from the fixed asset records.

e) Expenditure during the construction period is included under Capital Work in Progress and the same is allocated to the respective fixed assets on the completion of its construction.

7. Government Grants:

Government grants for Project Capital Subsidy are credited to Capital Reserve.

8. Foreign Currency Transactions:

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date transaction.

b) Any income or expense on account of exchange difference either on settlement or on translations recognised in the Profit and Loss Account except Fixed Assets acquisition in which they are adjusted to the carrying cost of such assets.

9. Investments:

Investments are classified as long term or current based on management intention at the time of purchase. Long Term Quoted Investments are stated at cost after deducting provisions made, if any, for permanent diminutions i.e. other than temporary diminution in value.

Long Term Unquoted Investments are stated at cost of acquisition. Current Investments are stated at lower of cost and fair value.

10. Retirement Benefits:

Liability for Gratuity is accounted on cash basis.

11. Borrowing Costs:

Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to acquisition or construction of qualifying assets are capitalised upto the date when such fixed assets are ready for their intended use and all other borrowing costs are charged to Profit and Loss Account.

12. Provision for Taxation:

Provision for Income tax and fringe benefit tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

The Deferred Tax resulting from timing difference between book and taxable profit is accounted for using tax rates & tax laws that have been enacted or substantively enacted as at the Balance Sheet date.

13. Provisions and Contingencies:

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance sheet date.

Contingent Liabilities are not recognised but are disclosed as a part of notes to accounts. Contingent Assets are neither recognised nor disclosed, in the financial statements.