Accounting Policies of Neelkanth Rock-Minerals Ltd. Company

Mar 31, 2025

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Change in Accounting policy:-

As stated to us, there is no significant change in accounting policy of the company affecting the
financial statements in any manner.

b) Use of estimates:-

The preparation of financial statements in conformity with Ind AS requires the management to
make judgments, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the
reporting period. Although these estimates are based on the management''s best knowledge of
current events and actions, uncertainty about these assumptions and estimates could result in
the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in
future periods.

c) Property, Plant and equipment’s

Property, plants and equipment’s are shown at cost net of accumulated depreciation and
impairment losses if any. Cost comprises of purchase price, other direct attributable costs for
bringing the assets to its working conditions for its intended use and proportionate allocated
share of indirect expenses, if any.

d) Depreciation on Tangible Fixed Assets

Depreciation on property, plant and equipment''s is computed on written down value method
at such rates as computed considering useful life provided in SCH II of the Act.

e) Investment

Investments, which are readily realizable and intended to be held for not more than one year
from the date on which such investments are made, are classified as current investments. All
other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price
and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value
determined on an individual investment basis. Long-term investments are carried at cost.
However, provision for diminution in value is made to recognize a decline other than
temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal
proceeds is charged or credited to the statement of profit and loss.

f) Inventories are valued and shown as under:

(i) Inventories are taken as per physical verification conducted by the management.

[ii] Inventories of Raw Material, Consumables, Stores, Oil & Lubricants, Fuel, and Packing
Materials have been valued at cost or market price whichever is lower.

[hi] Work in Progress and Finished Goods have been valued at lower of cost or market price.

[iv] Scrap and wastage are valued at market realizable value.

g) Revenue Recognition

(i] Sales of products are recognized at the time of invoicing to customers.

h) Preliminary Expenses

Preliminary expenditure is amortized over a period of 5 years commencing from the year of
commencement of commercial production.

i) Taxation

Tax expenses for the year, comprising current tax and deferred tax are included in determining
the net profit for the year.

A provision is made for the current tax based on tax liability computed in accordance with
relevant tax rates and tax laws. The deferred tax for all timing differences arising between
taxable incomes and accounting income are recognized at currently enacted tax rates.

Deferred tax assets are recognized only if there is reasonable certainty that they will be
realized and are reviewed for the appropriateness of their respective carrying values at each
balance sheet date.

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Mar 31, 2024

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Change in Accounting policy:-

As stated to us, there is no significant change in accounting policy of the company affecting the
financial statements in any manner.

b) Use of estimates:-

The preparation of financial statements in conformity with Ind AS requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period.
Although these estimates are based on the management''s best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a
material adjustment to the carrying amounts of assets or liabilities in future periods.

c) Property, Plant and Equipments

Property, plants and equipments are shown at cost net of accumulated depreciation and impairment
losses if any. Cost comprises of purchase price, other direct attributable costs for bringing the assets
to its working conditions for its intended use and proportionate allocated share of indirect expenses,
if any.

d) Depreciation on Tangible Fixed Assets

Depreciation on property, plant and equipments is computed on written down value method at such
rates as computed considering useful life provided in Sch II of the Act.

e) Investment

Investments, which are readily realizable and intended to be held for not more than one year from
the date on which such investments are made, are classified as current investments. All other
investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and
directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value
determined on an individual investment basis. Long-term investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other than temporary in the value of
the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds
is charged or credited to the statement of profit and loss.

f) Inventories are valued and shown as under:

(i) Inventories are taken as per physical verification conducted by the management.

(ii) Inventories of Raw Material, Consumables, Stores, Oil & Lubricants, Fuel, and Packing Materials
have been valued at cost or market price whichever is lower.

(iii) Work in Progress and Finished Goods have been valued at lower of cost or market price.

(iv) Scrap and wastage are valued at market realizable value.

g) Revenue Recognition

(i) Sales of products are recognized at the time of invoicing to customers.

h) Preliminary Expenses

Preliminary expenditure is amortized over a period of 5 years commencing from the year of
commencement of commercial production.

i) Taxation

Tax expenses for the year, comprising current tax and deferred tax are included in determining the
net profit for the year.

A provision is made for the current tax based on tax liability computed in accordance with relevant
tax rates and tax laws. The deferred tax for all timing differences arising between taxable income
and accounting income are recognized at currently enacted tax rates.

A provision is made for the current tax based on tax liability computed in accordance with relevant
tax rates and tax laws. The deferred tax for all timing differences arising between taxable income
and accounting income are recognized at currently enacted tax rates.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and
are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

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Mar 31, 2015

A) Change in Accounting policy:- As stated to us, there is no significant change in accounting policy of the company affecting the financial statements in any manner.

b) Use of estimates:- The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

c) Tangible Fixed Assets :- Fixed Assets are shown at cost net of accumulated depreciation and impairment losses if any. Cost comprises of purchase price, other direct attributable costs for bringing the assets to its working conditions for its intended use and proportionate allocated share of indirect expenses, if any.

d) Depreciation on Tangible Fixed Assets:- Pursuant to Companies Act, 2013 ('the Act') being effective from 1st April, 2014, the company has revised depreciation rates on tangible fixed assets as per the useful life specified in Part 'C" of Schedule II of the Act and due to the same there has been a change in the estimated useful life of depreciable tangible assets which affects the depreciation in the current period and in each period during the remaining useful life of the assets. The change is only in regard to accounting estimates requiring an adjustment of the carrying amount of tangible assets.

Depreciation on tangible fixed assets is computed on written down value method at such rates as computed considering useful life provided in Sch II of the Act. During the preceding years, the company was providing depreciation on written down value basis at the rate prescribed in Schedule XIV of the Companies Act, 1956.

Depreciation on intangible fixed assets is computed on written down value method as per the provisions of accounting standards applicable for the time being in force.

e) Investment: -"Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments."

"On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties."

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

"On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss."

f) Inventories are valued and shown as under:

i) Inventories are taken as per physical verification conducted by the management.

ii) Inventories of Raw Material, Consumables, Stores, Oil & Lubricants, Fuel, and Packing Materials have been valued at cost or market price whichever is lower.

iii) Work in Progress and Finished Goods have been valued at lower of cost or market price.

iv) Scrap and wastage are valued at market realisable value.

g) Revenue Recognition

i) Sales of products are recognized at the time of invoicing to customers

ii) The company has charged excise duty separately on sales,

h) Preliminary Expenses

Preliminary expenditure is amortized over a period of 5 years commencing from the year of commencement of commercial production,

i) Taxation

Tax expenses for the year, comprising current tax and deferred tax are included in determining the net profit for the year.

A provision is made for the current tax based on tax liability computed in accordance with relevant tax rates and tax laws. The deferred tax for all timing differences arising between taxable income and accounting income are recognized at currently enacted tax rates.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

j) Contingent Liabilities A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements

k) Gratuity and other Benefits to Employees The contribution to provident fund are being made monthly and are accounted for on accrual basis. Provision of Gratuity has however not been made.

l) Prior period and Extra ordinary Items Material events accruing after the Balance Sheet date are taken into cognizance. These items and changes in accounting policies, if material, are separately disclosed wherever required. The changes in accounting policies are generally made only where so required by statutes or standards or by compulsion of convenience.

m) Foreign Exchange Fluctuations The exchange fluctuation arising on the foreign currency transactions are recognised in the Profit and loss account at the time of realization/remittance except those relating to acquisition of fixed assets which are adjusted in cost of fixed assets.

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Mar 31, 2014

A) Change in Accounting policy;-

As stated to us, there is no significant change in accounting policy of the company affecting the financial statements in any manner.

b) Use of estimates:-

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the'' outcomes requiring a materia! adjustment to the carrying amounts of assets or liabilities in future periods.

c) Tangible Fixed Assets

Fixed Assets are shown at cost net of accumulated depreciation and impairment losses if any. Cost comprises of purchase price, other direct attributable costs for bringing the assets to its working conditions for its intended use and proportionate allocated share of indirect expenses, if any.

d) Depreciation on Tangible Fixed Assets

1, Depreciation on fixed assets have been charged on the Written Down Value method by applying rates prescribed vide circular No. 14/93 dated 20/12/1993 in schedule XIV cf trie Companies Act, 1956. Depreciation on additions/deletions to the assets during the period is provided on pro-rata basis.

e) Investment

Investments, which are readily realizable and Intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis, Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

f) Inventories are valued and shown as under:

i) Inventories are taken as per physical verification conducted by the management.

ii) Inventories of Raw Material, Consumables, Stores, Oil & Lubricants, Fuel, and Packing Materials have been valued at cost or market price whichever is lower.

iii) Work in Progress and Finished Goods have been valued at lower of cost or market price.

iv) Scrap and wastage are valued at market realisable value.

g) Revenue Recognition

i) Sales of products are recognized at the time of Invoicing to customers il) The company has charged excise duty separately on sales.

h) Preliminary Expenses

Preliminary expenditure is amortized over a period of 5 years commencing from the year of commencement of commercial production.

i) Taxation

Tax expenses for the year, comprising current tax and deferred tax are included in determining the net profit for the year.

A provision is made for the current tax based on tax liability computed in accordance with relevant tax rates and tax laws. The deferred tax for all timing differences arising between taxable income and accounting income are recognized at currently enacted, tax rates.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

j) Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will''be confirmed by the occurrence or non-occurrence of one or more uncertain future events, beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingient also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements

k) Gratuity and other Benefits to Employees

The contribution to -provident fund are being made monthly and are accounted for'' on accrual basis. Provision of Gratuity has however not been made.

l) Prior period and Extra ordinary Items

Material events accruing after the Balance Sheet date are taken into cognizance. These items- and changes in accounting policies, if material, are separately disclosed wherever required. The changes in accounting policies are generally made only where so required by statutes or standards or by complulsion of convenience.

m) Foreign Exchange Fluctuations

The exchange fluctuation arising on the foreign currency transactions are recognised in the Profit and loss account at the time of realization/remittance except those relating to acquisition of fixed assets which are adjusted in cost of fixed assets.

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Mar 31, 2011

1 The accounts are prepared on historical cost basis as a "going concern" following the mercantile system of Accounting and recognizing income & expenditure on accrual basis except otherwise stated.

2 Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price and other attributable costs for bringing the assets to its working condition for its intended use. The Financing cost incurred in respect of new project up to the date of its commissioning is however, capitalized.

3 Inventories are valued as under:

(a) Inventories are as per physical verification conducted by the management.

(b) Raw Materials, tools, packing materials, consumables, stores etc. valued at lower of cost or market value.

(c) Semi-finished and finished goods are valued at lower of cost or estimated net realizable value.

4 Depreciation is charged on written down value method by applying rates prescribed under Schedule XIV to the companies act 1956. Depreciation on addition/deletion to the assets during the year is provided on pro- rata basis.

5 (a) Sales of product and scrap are recognized at the time of invoicing to customers.

(b) Domestic Sale is net of trade discounts and returns and is exclusive of excise duty.

(c) Export Sales is shown at F.O.B. value as considered at the time of dispatch of goods. Exchange Fluctuations are accounted at the time of realisation of debts.

6 Dividend on shares held by company is accounted for as and when it is declared and interest on Investments is accounted on accrual basis except on doubtful loans on which interest is accounted for on cash basis.

7 Insurance Claims are accounted for on acceptance thereof.

8 Refund of excise, customs and sales tax are accounted for on final settlement

9 Contingent liabilities are not provided for but are disclosed by way of notes on accounts.

10 Preliminary expenditure is amortized over a period of 10 years commencing from the year of commercial production

11 The exchange fluctuation arising on the foreign currency transactions are recognized in the Profit and Loss account at the time of realization/remittance except those relating to acquisition of fixed assets which are adjusted in cost of fixed assets.

12 Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year. A provision is made for the current tax based on tax liability computed in accordance with relevant tax rates and tax laws. A provision is made for deferred tax for all timing differences arising between taxable income and accounting income at currently enacted tax rates. Deferred Tax assets are recognized only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective Carrying values at each balance sheet date.

13 The company has One segment namely Granite Slabs/ Tiles /Other Stones during the year under report.

14 The Company has not made any provision for Gratuity as per the payment of Gratuity Act.

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Mar 31, 2010

1. The accounts are prepared on historical cost basis as a "going concern" following the mercantile system of accounting and recognising income & expenditure on accrual basis except otherwise stated.

2. Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price and other attriubutable costs for bringing the assets to its working condition for its intended use. The Financing cost incurred in respect of new project upto the date of its commissioning is however, capitalized.

3. Inventories are valued as under:

(a) Inventories are as per physical verification conducted by the management.

(b)Raw Materials, tools, packing materials, consumables, stores etc. valued at lower of cost or market value. (c)Semi-finished and finished goods are valued at lower of cost or estimated net realizable value.

4 Depreciation is charged on written down value method by applying rates prescribed under Schedule XIV to the Companies Act, 1956. Depreciation on addition/deletion to the assets during the year is provided on pro rata basis.

5 (a) Sales of product and scrap are recognized at the time of invoicing to customers.

(b) Domestic Sale is net of trade discounts and returns and is exclusive of excise duty.

(c) Export Sales is shown at F.O.B. value as,-considered at the time of dispatch of goods. Exchange flutuations are accounted at the time of realisation of debts.

6. Dividend on shares held by company is accounted for as and when it is declared and interest on Investments is accounted on accrual basis except on doubtful loans on which interest is accounted for on cash basis.

7. Insurance Claims are accounted for on acceptance thereof.

8. Refund of excise, customs and sales tax are accounted for on final settlement.

9. Contingent liabilities are not provided for but are disclosed by way of notes on accounts.

10 Preliminary expenditure is amortized over a period of 10 years commencing from the year of commercial production.

11. The exchange fluctuation arising on the foreign currency transactions are recognised in the Profit and loss account at the time of realization/remittance except those relating to acquisition of fixed assets which are adjusted in cost of fixed assets.

12. Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year. A provision is made for the current tax based on tax liability computed in accordance with relevant tax rates and tax laws. A provision is made for deferred tax for all timing differences arising between taxable income and accounting income at currently enacted tax rates. Deferred Tax assets are recognised only if there is reasonable certainity that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

13. The company has only one segments namely Granite Slabs/Tiles/Other Stones during the year under report.

14. The company has not made any provision for Gratuity as per the Payment of Gratuity Act.