Mar 31, 2015
1. Corporate information
RCC CEMENTS LIMITED Company incorporated under the provisions of the
Companies Act, 1956.
2. Basis of preparation
- The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP).
- The company has prepared these financial statements to comply in all
material respects with the accounting standards notified under the
Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 1956.
- The company follows the Mercantile System of Accounting recognizing
Income and Expenditure on accrual basis.
- The directors have certified that there are no outstanding expenses
not provided for and nor there are income which have fallen due but not
accounted for. The accounts are prepared on historical cost basis and
as a going concern.
- The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
3. Summary of significant accounting policies
From the year ended 31 March 2015, the Schedule III notified under the
Companies Act 2013, has become applicable to the company, for
preparation and presentation of its financial statements. The adoption
of Schedule III does not impact recognition and measurement principles
followed for preparation of financial statements. However, it has
significant impact on presentation and disclosures made in the
financial statements. The company has also reclassified the previous
year figures in accordance with the requirements applicable in the
current year.
- 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.
- Fixed Assets
Fixed Assets are stated at cost. Depreciation of fixed assets is
calculated at the rates prescribed under Schedule XIV to the Companies
Act, 1956.
- 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.
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. 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.
- Inventories
Raw materials, components, stores and spares are valued at lower of
cost and net realizable value. Work in progress and finished goods are
valued at lower of cost and net realizable value.
- Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
- Income tax
o Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
- Deferred income taxes reflect the impact of timing differences
between taxable income and accounting income originating during the
current year and reversal of timing differences for the earlier years.
Mar 31, 2013
From the year ended 31 March 2012, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the company, for
preparation and presentation of its financial statements. The adoption
of revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on presentation and disclosures made in the
financial statements. The company has also reclassified the previous
year figures in accordance with the requirements applicable in the
current year.
- 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.
- Fixed Assets
Fixed Assets are stated at cost. Depreciation of fixed assets is
calculated at the rates prescribed under Schedule XIV to the Companies
Act, 1956.
- 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.
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. 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.
- Inventories
Raw materials, components, stores and spares are valued at lower of
cost and net realizable value. Work in progress and finished goods are
valued at lower of cost and net realizable value.
- Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
- Income tax
o Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
o Deferred income taxes reflect the impact of timing differences
between taxable income and accounting income originating during the
current year and reversal of timing differences for the earlier years.
Mar 31, 2011
1. Accounting Convention
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act. 1956 except where
otherwise stated.
2. Revenue Recognition
All Revenue / Income are recognised on accrual basis of accounting,
3. Expenditure
All expenses have been accounted for on accrual basis
4. Use of Estimates
The preparation of financial statements in conformity with GAAP
requires that the managements makes estimates and assumptions that
affect reported amount of assets and liabilities, disclosure of
contingent liabilities as at the date of financial statements. and the
reported amount of revenues and expenses during the reported year
Actual results could differ from those estimates
5. Fixed Assets
Fixed Assets are stated at cost less depreciation. All costs including
financing costs till commencement of commercial production relating to
borrowings attributable to fixed assets are capitalised.
6. Depreciation
Depreciation on fixed assets has been provided on straight line method
at the rates prescribed in Schedule XIV of the Companies Act, 1956.
7. Investments
Investments are treated as long term investments and are stated at
cost. Any decline in the value of investments, other than a temporary
decline, is recognised and charged to Profit & Loss Account
8. Impairment of Assets
All assets other than inventories, investments and deferred tax assets
are reviewed for impairment at each balance sheet date, wherever events
or charges in circumstances indicate that the carrying amount may not
be recoverable. Assets whose carrying values exceed their recoverable
amount are written down to the recoverable amount.
9. Income Tax
Tax expense comprises both current and deferred taxes. Current tax is
determined on the taxable profits of the year using the applicable tax
rates and tax laws. Deferred tax for the year is recognised on timing
difference, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods
Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax assets are recognised and carried
forward only if there is a reasonable/virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realised
10. Inventories
Inventories are valued at cost
11. Contingent Liabilities
Contingent liabilities are not provided tor, and If any, are disclosed
separately by way of notes
Mar 31, 2010
1. Accounting Convention
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 except where
otherwise stated.
2. Revenue Recognition
All Revenue / income are recognised on accrual basis of accounting
3. Expenditure
All expenses have been accounted for on accrual basis.
4. Use of Estimates
The preparation of financial statements in conformity with GAAP
requires that the managements makes estimates and assumptions that
affect reported amount of assets and liabilities, disclosure of
contingent liabilities as at the date of financial statements. and the
reported amount of revenues and expenses during the reported year.
Actual results could differ from those estimates.
5. Fixed Assets
Fixed Assets are stated at cost less depreciation. All costs including
financing costs till commencement of commercial production relating to
borrowings attributable to fixed assets are capitalised
6. Depreciation
Depreciation on fixed assets has been provided on straight line method
at the rates prescribed in Schedule XIV of the Companies Act. 1956,
7. Investments
Investments are treated as long term investments and are stated at
cost. Any decline in the value of investments, other than a temporary
decline, is recognised and charged to Profits Loss Account.
8. Impairment of Assets
All assets other than inventories, investments and deferred tax assets
are reviewed for impairment at each balance sheet date, wherever events
or charges in circumstances indicate that the carrying amount may not
be recoverable. Assets whose carrying values exceed their recoverable
amount are written down to the recoverable amount.
9. Income Tax
Tax expense comprises both current and deferred taxes. Current tax is
determined on the taxable profits of the year using the applicable tax
rates and tax laws. Deferred tax for the year is recognised on timing
difference, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods.
Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax assets are recognised and carried
forward only if there is a reasonable/virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realised
10. Inventories
Inventories are valued at cost
11. Contingent Liabilities
Contingent liabilities are not provided for. and if any. are disclosed
separately by way of notes.
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