Mar 31, 2015
1. CORPORATE INFORMATION
Chhattisgarh Industries Limited is a public limited company domiciled
in India under the provisions of the Companies Act, 2013 (erstwhile
Companies Act 1956). The Company is engaged in manufacturing and
selling of coal/coke.
a) BASIS OF ACCOUNTING
The financial statements of Chhattisgarh Industries Limited ("the
Company") have been prepared and presented in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprises accounting
standards notified by the Central Government of India under Section 133
of the Companies Act, 2013, other pronouncements of Institute of
Chartered Accountants of India and the other provisions of Companies
Act, 2013. All 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 the Schedule III to the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current  non-current classification of
assets and liabilities. The company follows the accrual system of
accounting for recognizing income and expenditure.
b) USE OF ESTIMATES
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
liabilities on the date of the financial statements and reported
amounts of revenues and expenses for the year. Actual results could
differ from these estimates. Estimates and underlying assumptions are
reviewed on an ongoing basis. Any revision to accounting estimates is
recognized prospectively in the current and future periods.
c) 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.
Sale of goods:
Revenue is recognized when the significant risks and rewards of
ownership of goods have passed to the buyer.
Sale of scrap:
Revenue from sale of scrap is recognized as and when scrap is sold.
d) FIXED ASSETS AND DEPRECIATION
Tangible Assets:
Fixed assets are carried at the cost of acquisition or construction
less accumulated depreciation. The cost of fixed assets includes
non-refundable taxes, duties, freight and other incidental expenses
related to the acquisition and installation of the respective assets.
Depreciation and amortization:
Depreciation on fixed assets is charged as per Straight Line Method as
per the rates specified under schedule II of the Companies Act, 2013.
e) EMPLOYEE BENEFITS
All short-term and long term employee benefits are recognized at their
undiscounted amount in the accounting period in which they are
incurred.
f) EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period.
g) TAXATION
Provision for current tax is made for the tax liability payable on
taxable income after considering the allowances, deductions and
exemptions and disallowances if any determined in accordance with the
prevailing tax laws. The differences between the taxable income and the
net profit or loss before tax for the period as per the financial
statements are identified and the tax effect on the "timing
differences" is recognized as deferred tax asset or deferred tax
liability. The tax effect is calculated on the accumulated timing
differences at the end of the accounting period based on the tax rates
and laws, enacted or substantively enacted as of the balance sheet
date.
h) PROVISIONS,CONTINGENT LIABILITES AND CONTINGENT ASSETS:
The Company creates a provision when there is a present obligation as a
result of an obligating event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
outflow. Contingent liabilities are disclosed in respect of possible
obligations that arise from past events but their existence is
confirmed by the occurrence or non-occurrence of one or more uncertain
future events not within the control of the company. Contingent Assets
are neither recognized nor disclosed in the Financial Statements as a
matter of prudence.
Mar 31, 2014
A. Basis of Preparation of Financial Statements
The financial statements have been prepared with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply in all material
respects with the accounting standards notified by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared under the historical cost convention on an accrual basis.
The accountings policies have been consistently applied by the Company
and are consistent with those used in the previous period.
b. Use of Estimates
The preparation of the financial statements requires the management to
take reasonable estimates and assumption that affect the reported
amount of assets, liabilities and disclosure of contingent liabilities
as at the date of the financial statements. Management believes that
these estimates are reasonable and prudent. However, actual results may
differ from estimates.
c. Cash Flow Statements
Cash flow statement of the company reports cash flows during the period
classified by operating, investing and financial activities.
d. Revenue Recognition
Incomes/Expenses/Revenues are accounted for on accrual basis. Revenue
is recognised to the extent that it is probable that the economic
benefit will flow to the company and the revenue can be reliably
measured.
e. Fixed Assets
Fixed Assets are stated at cost including all incidental expenses
incurred for bringing the asset to its current position, less
depreciation at rates prescribed in Schedule XIV to the Companies Act,
1956, subject to provisions of Accounting Standard 26 "Intangible
Assets".
f. Depreciation
Depreciation has been provided on Straight Line Method in accordance
with section 205(2) of the Companies Act, 1956 at the rates specified
in schedule XIV to the Companies Act, 1956, on pro-rata basis with
reference to the period of use of such assets. Assets costing less than
Rs.5,000/- per item are depreciated at 100% in the year of purchase.
g. Impairment of Assets
The carrying amounts of Cash Generating Assets are reviewed at each
Balance Sheet date to determine whether there is any indication of
impairment. If any such indication exists, the recoverable amount is
estimated at the higher of net realisable value and value in use.
Impairment loss is recognised wherever carrying amount exceeds the
recoverable amount.
h. Retirement Benefits
All short-term and long term employee benefits are recognised at their
undiscounted amount in the accounting period in which they are
incurred.
i. Income Tax
Provision for current tax is made for the tax liability payable on
taxable income after considering the allowances, deductions and
exemptions and disallowances if any determined in accordance with
the prevailing tax laws. The differences between the taxable income
and the net profit or loss before tax for the period as per the
financial statements are identified and the tax effect on the
"timing differences" is recognised as deferred tax asset or deferred
tax liability. The tax effect is calculated on the accumulated timing differences at the end of the accounting period based on the tax
rates and laws, enacted or substantively enacted as of the balance
sheet date.
j. Provisions, Contingent Liabilities & Contingent Assets
The Company creates a provision when there is a present obligation as a
result of an obligating event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
outflow.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non-occurrence of one or more uncertain future events not
within the control of the company.
Contingent Assets are neither recognized nor disclosed in the Financial
Statements as a matter of prudence
Mar 31, 2012
A) The Company prepares its accounts on the basis of historical cost
convension and incomes and expenditure are recognized on accrual basis.
b) No provision for gratuity and other retirement benefits have been
made in the accounts on accrual basis.
c) Inventories are taken, valued and certified by the management.
However as informed valuation are done on the basis of cost or market
price whichever is lower.
d) Quoted Securities has been valued at cost or market price whichever
is lower and unquoted at cost.
Mar 31, 2010
A) The Company prepares its accounts on the basis of historical cost
convention and incomes and expenditure are recognized on accrual basis.
b) No provision for gratuity and other retirement benefits have been
made in the accounts on accrual basis.
c) Inventories are taken, valued and certified by the management.
However, as informed valuation are done on the following basis:-
a) Quoted Securities has been valued at cost or market price whichever
is lower and unquoted at cost.