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Accounting Policies of Trinetra Cement Ltd. Company

Mar 31, 2016

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with Generally Accepted Accounting Principles in India (''Indian GAAP''), includes generally under the historical cost convention on accrual basis and exceptions to this basis, if any, are herein specifically mentioned. Indian GAAP comprises of mandatory Accounting Standards issued by the National Advisory Committee on Accounting Standards (NACAS) and The Institute of Chartered Accountants of India (ICAI), the provisions of the Companies Act, 2013 and the Guidelines issued by ICAI and Securities and Exchange Board of India (SEBI). Accounting policies have been consistently adopted except where a change in existing GAAP requires a change in accounting policy hitherto in use.

The Board of Directors has approved a Scheme of Amalgamation between Trinetra Cement Limited and Trishul Concrete Products Limited with The India Cements Ltd effective 1s* January 2014. Petitions have been filed in the Honorable High Court of Judicature at Madras under Section 391 to Section 394 of the Companies Act, 1956 for completing the procedural requirements for the said Scheme. The Shareholders of the respective Companies have approved the Scheme of Amalgamation. Pending sanction of the scheme, these Financial Statements have been prepared and submitted for adoption of Shareholders.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

2.2 Fixed Assets

(a) Fixed assets are stated at cost of acquisition or construction. All costs including financing and applicable overheads incurred on specific projects are capitalized.

(b) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and put into commercial operation.

(c) Depreciation on fixed assets is provided in the following manner:

(i) Depreciation on fixed assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). Depreciation is provided on useful life of the assets as prescribed in Schedule II of the Companies Act, 2013, except in respect of assets installed in the premises of Third Party on license to use basis and is depreciated over the term of the license/agreement

(ii) Depreciation on additions is provided on pro rata basis for the period for which assets are put to use.

(iii) Assets costing less than Rs.5000 are fully depreciated in the year of purchase.

(iv) Leasehold land is not amortized.

(v) Fixed assets are tested for impairment and impairment loss, if any, is charged to the Profit and Loss Account.

2.3 Sale / Turnover includes sale value of goods and excise duty thereon but excludes VAT recovered.

2.4 Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process (WIP) & Semi-finished goods are valued at cost or net realizable value whichever is lower. The value of WIP and Semi-finished goods does not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realizable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

2.5 Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are capitalized up to the end of the month in which such assets are put into commercial operation. Other borrowing costs are recognized in Statement of Profit and Loss in the period in which they are incurred.

2.6 Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted on cash basis.

2.7 Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis. Unveiled leave balances are accounted based on respective employee''s earnings as at the Balance sheet date.

2.8 Foreign Currency Transactions

Foreign exchange transactions, on current account, are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Current assets and liabilities in foreign currencies are translated at values prevailing as at the Balance sheet date. Gains/ losses, if any, arising there from are recognized in the Statement of Profit & loss.

Rights, preferences and restrictions attached to shares

The Company has only one class of Equity Shares. Each Share has a paid up value of Rs.10/-.Every shareholder is entitled to one vote per share.

The Company declares and pays dividend in Indian Rupees at the discretion of Board of Directors, subject to availability of profits. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting.

During the year 2012-13, the Company issued 90,00,000, 9% Non-Convertible Non-Cumulative Redeemable Preference Shares of Rs.100 each fully paid up. These Preference Shares shall be redeemable at the end of six years commencing from 05.11.2012, the date of allotment.

During the year 2011-12, the Company issued 60,500,000, 9% Non-Convertible Non-Cumulative Redeemable Preference Shares of Rs.100 each fully paid up. These Preference Shares shall be redeemable at the end of six years commencing from 06.02.2012, the date of allotment.

During the year 2010-11, the Company issued 1,000,000, 9% Non-Convertible Cumulative Redeemable Preference Shares of Rs.100 each fully paid up. These Preference Shares shall be redeemable at the end of six years commencing from 14.03.2011, the date of allotment.

1 Value of Plant and Machinery includes Rs.1207.15 Lakhs being cost of Plant and machinery installed in the premises of third party on "License to use" basis.This amount is depreciated over the term of license / agreement.

2 Pursuant to enactment of the Companies Act, 2013, the company has applied the estimated useful lives as specified in Schedule II, except in respect of certain assets as disclosed in Accounting Policies of Depreciation on Fixed Assets. Accordingly the unamortized carrying value is depreciated over the revised / remaining useful lives. In case of fixed assets whose useful life have expired on or before 1st April 2014, the balance depreciable amount of Rs. 47.74 lakhs was provided as depreciation during the financial year 2014-15 by debit to opening balance of Profit and Loss Account.

SECURITY CLAUSE

Term Loans are secured in favor of Axis Trustee Services Limited, the Security Trustee for the Lender IndoStar Capital Finance Limited by hypothecation of Company''s movable properties, both present and future, including current assets, movable machinery, machinery spares, tools and accessories, tangible and intangible assets of the Company, subject to prior charges on current assets created / to be created in favour of Company''s bankers for securing the working capital facilities and further secured by a first pari passu charge on all the fixed assets of the Cement Plant and Thermal Power Plant, at Banswara Rajasthan, pledge of shares held by Promoters and Corporate Guarantee from The India Cements Limited.


Mar 31, 2015

1.1 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

1.2 Fixed Assets

(a) Fixed assets are stated at cost of acquisition or construction. All costs including financing and applicable overheads incurred on specific projects are capitalised.

(b) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and put into commercial operation.

(c) Depreciation on fixed assets is provided in the following manner:

(i) Depreciation on fixed assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). Depreciation is provided on useful life of the assets as prescribed in Schedule II of the Companies Act, 2013, except in respect of assets installed in the premises of Third Party on licence to use basis and is depreciated over the term of the licence/agreement

(ii) Depreciation on additions is provided on pro rata basis for the period for which assets are put to use.

(iii) Assets costing less than Rs.5000 are fully depreciated in the year of purchase.

(iv) Leasehold land is not amortised.

(v) Fixed assets are tested for impairment and impairment loss, if any, is charged to the Profit and Loss Account.

1.3 Sale / Turnover includes sale value of goods and excise duty thereon but excludes VAT recovered.

1.4 Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process (WIP) & Semi-finished goods are valued at cost or net realisable value whichever is lower. The value of WIP and Semi-finished goods does not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

1.5 Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are capitalised upto the end of the month in which such assets are put into commercial operation. Other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

1.6 Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted on cash basis.

1.7 Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis. Unavailed leave balances are accounted based on respective employee's earnings as at the Balance sheet date.

1.8 Foreign Currency Transactions

Foreign exchange transactions, on current account, are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Current assets and liabilities in foreign currencies are translated at values prevailing as at the Balance sheet date. Gains/ losses, if any, arising therefrom are recognised in the Statement of Profit & loss.


Mar 31, 2014

1.1 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.2 Fixed Assets

(a) Fixed assets are stated at cost of acquisition or construction. All costs including financing and applicable overheads incurred on specific projects are capitalised.

(b) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and put into commercial operation.

(c) Depreciation on fixed assets is provided in the following manner:

(i) The Company provides depreciation on written down value method for Zinc division assets and Motor Vehicles.

(ii) Software development costs are capitalised and depreciated along with computers on Straight Line method as per Section 205(2)(b) of the Companies Act, 1956.

(iii) For all other assets Straight Line method as per Section 205(2)(b) of the Companies Act, 1956 is adopted.

(iv) Depreciation on additions is provided on pro rata basis for the period for which assets are put to use.

(v) Assets costing less than Rs.5000 are fully depreciated in the year of purchase.

(vi) Leasehold land is not amortised.

(vii) Fixed assets are tested for impairment and impairment loss, if any, is charged to the Profit and Loss Account.

1.3 Sale / Turnover includes sale value of goods and excise duty thereon but excludes VAT recovered.

1.4 Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process (WIP) & Semi-finished goods are valued at cost or net realisable value whichever is lower. The value of WIP and Semi-finished goods does not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

1.5 Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the end of the month in which such assets are put into commercial operation. Other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

1.6 Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted on cash basis.

1.7 Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis. Unavailed leave balances are accounted based on respective employee''s earnings as at the Balance Sheet date.

1.8 Foreign Currency Transactions

Foreign exchange transactions, on current account, are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Current assets and liabilities in foreign currencies are translated at values prevailing as at the Balance Sheet date. Gains / losses, if any, arising therefrom are recognised in the Statement of Profit & Loss.


Mar 31, 2013

1.1 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.2 Fixed Assets

(a) Fixed assets are stated at cost of acquisition or construction. All costs including financing and applicable overheads incurred on specific projects are capitalised.

(b) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and put into commercial operation.

(c) Depreciation on fixed assets is provided in the following manner:

(i) The Company provides depreciation on written down value method for Zinc division assets and Motor Vehicles.

(ii) Software development costs are capitalised and depreciated along with computers on Straight Line method as per Section 205(2)(b) of the Companies Act, 1956.

(iii) For all other assets Straight Line method as per Section 205(2)(b) of the Companies Act, 1956 is adopted.

(iv) Depreciation on additions is provided on pro rata basis for the period for which assets are put to use.

(v) Assets costing less than Rs.5000 are fully depreciated in the year of purchase.

(vi) Leasehold land is not amortised.

(vii) Fixed assets are tested for impairment and impairment loss, if any, is charged to the Profit and Loss Account.

1.3 Sale / Turnover includes sale value of goods and excise duty thereon but excludes VAT recovered.

1.4 Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process (WIP) & Semi-finished goods are valued at cost or net realisable value whichever is lower. The value of WIP and Semi-finished goods does not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

1.5 Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are capitalised upto the end of the month in which such assets are put into commercial operation. Other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

1.6 Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted on cash basis.

1.7 Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis. Unavailed leave balances are accounted based on respective employee''s earnings as at the balance sheet date.

1.8 Foreign Currency Transactions

Foreign exchange transactions, on current account, are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Current assets and liabilities in foreign currencies are translated at values prevailing as at the balance sheet date. Gains/losses, if any, arising therefrom are recognised in the Statement of Profit & Loss.


Mar 31, 2012

1.1 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

1.2 Fixed Assets

(a) Fixed assets are stated at cost of acquisition or construction. All costs including financing and applicable overheads incurred on specific projects are capitalised.

(b) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and put into commercial operation.

(c) Depreciation on fixed assets is provided in the following manner:

(i) The Company provides depreciation on written down value method for Zinc division assets and Motor Vehicles.

(ii) Software development costs are capitalised and depreciated along with computers on Straight Line method as per Section 205(2)(b) of the Companies Act, 1956.

(iii) For all other assets Straight Line method as per Section 205(2)(b) of the Companies Act, 1956 is adopted.

(iv) Depreciation on additions is provided on pro rata basis for the period for which assets are put to use.

(v) Assets costing less than Rs.5000 are fully depreciated in the year of purchase.

(vi) Leasehold land is not amortised.

(vii) Fixed assets are tested for impairment and impairment loss, if any, is charged to the Profit and Loss Account.

1.3 Sale / Turnover includes sale value of goods and excise duty thereon but excludes VAT recovered.

1.4 Inventories

(a) Valuation of inventories of raw materials, packing materials, stores, spares, fuels is at weighted average cost.

(b) Work-in-Process (WIP) & Semi-finished goods are valued at cost or net realisable value whichever is lower. The value of WIP and Semi-finished goods does not include interest and other administrative overheads.

(c) Finished goods are valued at cost or net realisable value whichever is lower. The value of finished goods includes excise duty and does not include interest and other administrative overheads.

1.5 Borrowing Costs

Interest and other costs in connection with borrowing of funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are capitalised upto the end of the month in which such assets are put into commercial operation. Other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

1.6 Claims / Incomes arising from price escalation and/or any other item of compensation and which are indeterminate are accounted on cash basis.

1.7 Retirement benefits are provided by charge to revenue including provision for gratuity and superannuation fund determined on an actuarial basis. Unavailed leave balances are accounted based on respective employee's earnings as at the balance sheet date.

1.8 Foreign Currency Transactions

Foreign exchange transactions, on current account, are accounted at the exchange rates prevailing at the time of transactions or at contracted rates. Current assets and liabilities in foreign currencies are translated at values prevailing as at the balance sheet date. Gains/losses, if any, arising there from are recognised in the Profit & Loss Account.


Mar 31, 2010

I. Basis of preparation of financial statements:

The financial statements are prepared under the historical cost convention on the accrual basis of accounting, unless otherwise stated, in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act 1956 and the applicable accounting standards.

II. Use of Estimates:

The preparation of financial statements requires estimates and assumptions. Differences between the estimates and actual results are recognised in the period in which the same are known.

ill. Fixed Assets:

a) Fixed assets are stated at cost of acquisition or construction and include proportionate amount of expenditure during construction capitalised to respective assets.

b) Expenditures and outlays of money on uncompleted projects of a capital nature are shown as capital works-in-progress until such time these projects are completed and commissioned. Capital works-in-progress include capital advances paid, machinery under installation/ in transit, construction and erection materials (including those lying with contractors).

Iv. Depreciation:

a) Depreciation on fixed assets of Zinc division is provided on written down value (WDV) method and in the manner provided in schedule XIV to the Companies Act, 1956. Depreciation on additions is provided on pro-rata basis for the period for which the assets are put to use.

b) Depreciation on fixed assets of Cement division is provided on straight-line basis and in the manner provided in schedule XIV to the Companies Act, 1956. Depreciation on additions is provided on pro-rata basis for the period for which the assets are put to use.

c) Assets costing less than Rs. 5000 are fully depreciated in the year of purchase.

d) Leasehold land is not amortised. v. Impairment of Assets:

An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use.

vi. Foreign Exchange Transactions:

Foreign exchange transactions are recorded at the exchange rates prevailing on the date of transaction and net loss or gain arising on settlement of transaction is adjusted to profit and loss account.

vii. Valuation of inventory:

a) Raw materials are valued at cost on FIFO basis. Cost includes incidental expenses such as freight, transport and clearing charges.

b) Stores & spare parts are valued at cost.

c) Finished goods are valued at cost or market value whichever is lower.

d) Goods in process are valued at cost or net realisable value whichever is lower. viii. Sales/ Turnover:

Sales/ Turnover include sale value of goods and excise duty thereon but exclude VAT recovered.

ix. Excise duty and Cenvat Credits:

Sales and purchases (other than those of capital goods) are stated inclusive of excise duty. Cenvat credits relating to capital goods are reduced from the value of the capital goods.

x. Retirement benefits:

None of the employees of the company was entitled to any retirement benefit at the end of the current year.

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