SIGNIFICANT ACCOUNTING POLICIES a) Basis of brparation The financial statements of the Company have been brpared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has brpared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rule, 2006, (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared on an accrual basis and under the historical cost convention, except for land acquired before 01-04-2007 which are carried at revalued amounts. The accounting policies adopted in the brparation of financial statements are consistent with those of brvious year, except for the change in accounting policy explained below. b) Use of Estimates The brparation of financial statements requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenue, 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) Revenue Recognition (a) Revenue/income and cost/expenditure are generally accounted on accrual basis as they are earned or incurred. (b) Dividend on investment is accounted on cash basis. d) Fixed Assets All fixed assets are stated at cost of acquistion except land which has been revalued during the F.Y. 2006-2007. All other costs till commencement of commercial production/ put to use are capitalised. Debrciation on Tangible Fixed Assets Effective from 1st April, 2014, the Company debrciates its fixed assets on straight line method over the useful life in the manner brscribed in Schedule II of the Companies Act, 2013 as against the earlier practice of :- (i) Providing debrciation on Dumpers, Earth-moving machinery, and machineries of Kudayla polishing unit II and debrciaion on Wind Power Generating Units installed at Coimbatore Dist. (Tamil Nadu), Gadag Dist. (Karnataka) & Satara Dist. (Maharashtra) on straight line method as per the rate and in the manner brscribed in Schedule XIV of the Companies Act, 1956. (ii) Providing debrciation on other fixed assets except as stated in (i) above on written down value method as per rates and in the manner brscribed in Schedule XIV of the Companies Act, 1956. Debrciation on Intangible Fixed Assets Effective from 1st April, 2014, the Company debrciates its intangible assets on straight line method over the useful life in the manner brscribed in Schedule II of the Companies Act, 2013 as against the earlier practice of providing debrciation on written down value method as per rates brscribed in Appendix I of rule 5 of Income Tax Rules . e) Capital Work in Progress Capital work-in-progress rebrsents amount incurred on the respective assets including cost directly attributable to such asset is stated at cost until the assets is ready to put to use. f) Inventories Inventories are valued at cost or net realisable value, whichever is less. g) Borrowing Costs Borrowing cost includes interest, amortization of anciliary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are considered in the period they occur. h) Foreign Currency Transaction (i) All transactions in foreign currency, are recorded at the rates of exchange brvailing on the dates when the relevant transactions take place. (ii) Monetary items in the form of Loans, Current Assets and Current Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange brvailing on the date of the Balance Sheet. Resultant gain or loss is accounted during the year. (iii) All other incomes or expenditure in foreign currency, are recorded at the rates of exchange brvailing on the dates when the relevant transactions take place. i) Impairment of Tangible and Intangible Assets Impairment Loss is charged to the Statement of Profit & Loss in the period in which , an asset is identified as impaired, when the carrying value of the assets exceeds its recoverable value. The impairment loss recognised in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount. j) Investments 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 noncurrent investments. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Non-current 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. In accordance with the Schedule III of the Companies Act, 2013, the portion of the non-current investments classified above, and expected to be realised within 12 months of the reporting date, have been classified as current 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. k) Retirement and other employee benefits Retirement benefits to employees comprise payment of gratuity and provident fund under approved schemes of the Company. Annual contribution to gratuity fund is determined based on an actuarial valuation as at the balance sheet date by an independent actuary. l) Income Taxes (a) Provision for current tax is made on the basis of estimated tax liability as per the applicable provisions of tax laws. (b) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certaintythat these assets can be either realised in future or adjusted against deferred tax liability. m) Contingent Liabilities A contingent liabilities is a possible obligation that arise from past events whose existence will be confirmed by the occurence or non occurrence of one or more uncertain future events beyond the control of the Company or a brsent 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. 2. Company has purchased mining machinery during the year 2007-08 under EPCG scheme in respect of which the Company has an Export obligation of US$10,96,336.20 (Previous year US$ 10,96,336.20) to be completed over a period of 8 years from June, 2007. 3. During the year, the Company has sold some of the land for Rs. 41.39 Lacs revalued in the earlier year. The profit on sale of such assets to the extent of revalued amount Rs. 31.91 lacs has been credited to General Reserve Account and the Revaluation Reserve Account has been debited to the extent of assets revalued earlier. 4. During the year under review, the Company has incurred expenditure of Rs.Nil (Previous year Rs. 37.80 lacs) towards feasibility study & other expenses for setting up of new ventures and same has been debited to br-operative expenses and shown under the head of Other Current Assets. 5. The exceptional items as shown in the Statement of Profit & Loss relates reversal of earlier year provisions amounting to Rs. 257.10 lacs due to re-assessment of land tax liability by the appropriate authority. 6. The Company has changed the policy of providing debrciation on Fixed Assets effective from 1st April, 2014 as required by the Companies Act, 2013. The Management of the Company estimated the useful life of all assets and the remaining useful life of the assets wherever appropriate based on evaluation. Due to this the debrciation charges for the year ended 31st March, 2015 is lower by Rs. 94.90 lacs. Further based on transitional provision provided in Note 7(b) of Schedule II an amount of Rs. 50.66 lacs which pertains to carrying value of assets whose remaining useful life as on 1st April, 2014 is NIL has been adjusted to the Retained Earnings. 7. During the current year the company has:- i) formed a wholly owned subsidiary viz. ASI Global Limited a private Company limited by shares, incorporated on 19th May, 2014 in Mauritius under the Companies Act, 2001. ii) acquired on 27th October, 2014, 99% shares (51% shares held by nominee as required by local law for beneficial interest of the group) in Al Rawasi Rock & Aggregate LLC, UAE (RRA) having Limestone Quarry, through its aforesaid wholly owned subsidiary. As the Company holds 1% shares in RRA, RRA also become the wholly owned subsidiary of the Company. As per our Report of even date B. L. AJMERA & CO. Chartered Accountants Firm Regn. No. 001100C C. Venkatesan Partner Membership No. 010054 On behalf of the Board of Directors S. R. Soni Chief Executive Officer Pavan Kumar Soni Chief Financial Officer Deepak Jatia Chairman & Managing Director Anita Jatia Director Uttam Shetty Company Secretary Place : Mumbai Date : 30th May, 2015 |