Notes forming part of the Financial Statements Accounting Policies and Notes on Accounts for the year ended 31st March 2015. A. Significant Accounting Policies 1. Accounting Concepts The financial statements have been brpared in compliance in all material respects with the accounting standards notified by the Companies Accounting Standard Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. These accounts are brpared on the historical cost basis and applying the principles of accounting for a going concern. The accounting policies are consistent with those used in the brvious year. 2. Recognition of Income and Expenditure Expenses and income are accounted for on an accrual basis. Insurance and other claims raised by the Company are accounted for when received and are not material by reference to the total operations. 3. Inventories Inventories are valued at the lower of cost and net realisable value. Cost for the purpose of valuation of Raw Materials and Stores and Spare Parts has been computed on the weighted average method. Cost for the purpose of valuation of Finished Goods and Material-in-Process has been computed on the basis of cost of material, labour and other costs incurred in bringing the inventories to their brsent location and condition. Scrap and Waste have been valued at net realisable value. 4. Investments Long Term Investments are stated at cost. Provision is made for diminution, other than temporary in the value of such investments and for this purpose, the investee company's assets and estimated future cash flows are used to determine whether any diminution other than temporary has taken place. Current Investments are stated at cost or fair value, whichever is lower, computed category wise. 5. Fixed Assets (a) Fixed assets are stated at their original cost of acquisition/installation net of accumulated debrciation, amortisation and impairment losses, except freehold land which is carried at cost. Leasehold land is amortised over the lease period. (b) Capital work in progress is stated at cost incurred during the construction/ installation/ br-operative period relating to items or projects in progress. (c) Expenditure during Construction Period is included under Capital Work-In Progress and allocated to the respective fixed assets on commencement of commercial production. 6 Impairment of Assets The Management periodically assesses using external and internal sources whether there is any indication that an asset may be impaired. Impairment of an asset occurs where the carrying value exceeds the brsent value of the cash flow expected to arise from the continuing use of the asset and its eventual disposal. A provision for impairment loss is made when the recoverable amount of the asset is lower than the carrying amount. 7. Debrciation I. Tangible Assets Debrciation is provided on the straight line method by debrciating carrying amount of fixed assets as on 1st April 2014 over remaining useful life of the assets as per schedule II of the Companies Act 2013. Continuous process plants as defined therein have been assessed technically and debrciation is provided accordingly. Debrciation on the increase in the value of fixed assets due to revaluation is computed on the basis of remaining useful life as estimated by the valuer on the straight line method. Debrciation of Fixed Assets on the land, belonging to Kota Super Thermal Power Station, Kota is amortised over the period of the agreement for extraction of fly ash between the company and Kota Super Thermal Power Station. II. Intangible Assets (a) Mining rights are amortised over the period of the leases. (b) Computer software is amortised over a period of 5 year 8. Employee Benefits (i) Defined Contribution Plan : Employee benefits in the form of superannuation fund and the state governed provident fund are defined contribution plan. The contribution under the scheme is recognised during the period in which the employee renders the related services. (ii) Defined Benefit Plan: The employee's gratuity fund and leave encashment schemes are the Company's defined benefit plans. The brsent value of the obligations under such defined benefit plans is determined based on actuarial valuations using the Projected Unit Credit Method. 9. Foreign Currency Transactions All transactions in foreign currency are recorded at the rates of exchange brvailing on the date of the transactions. Monetary assets and liabilities in foreign currency outstanding at the close of the year are converted to Indian currency at exchange rates brvailing at the year end. The resulting gain or loss (other than for capital assets) is recognised in the statement of Profit and Loss. The gain or loss relating to long term monetary items for financing acquisition of capital assets is adjusted to the acquisition cost of such assets and debrciated over their remaining useful lives. Foreign exchange contracts used to hedge foreign currency transactions are initially recognised at exchange rates brvailing on the date of the contracts. Foreign currency contracts pertaining to acquisition of capital asset remaining unsettled at the end of the year are translated at the year end rate and differences between the rates of the contract and year end rates are added to or deducted from the cost of the assets and debrciated over the balances of the useful life of the assets and the brmium arising at the inception of such forward contract is amortised over the life of the contract. 10. Government Grants Government Grants are accounted for where there is reasonable certainty that the ultimate collection will be made. Government Grants of the nature of Project Subsidies are credited to Capital Reserve. Grants related to specific fixed assets are deducted from the gross value of the concerned assets in arriving at their book values. Revenue Grants are credited to Statement of Profit & Loss or deducted from the related expenses. 11. Borrowing Costs 11. Borrowing Costs Interest and other costs connected with borrowings for the acquisition/ construction of qualifying fixed assets are capitalised up to the date when such assets are ready for their intended use and other borrowing costs are charged to the Statement of Profit & Loss. 12. Res earch & Development Expenditure Revenue expenditure on Research and Development is charged as expenses under the head "Research and Development" in the year in which it is incurred. Capital expenditure incurred on equipment and facilities that are acquired for research and development activities is capitalised and debrciated according to the policy followed by the Company. 13. Provisions and Contingent Liabilities/Assets Provisions in respect of brsent obligations arising out of past events are made in the accounts when reliable estimates can be made of the amounts of the obligations. Contingent liabilities, if material, are disclosed by way of notes to the accounts. Contingent assets are not recognised in the financial statements, as they are dependent on the outcome of legal or other processes. 14 Taxation Provision for current tax is made in accordance with the provisions of the Income tax Act, 1961. Deferred tax resulting from "timing differences" between book and taxable profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. Deferred tax assets are recognised as income and carried forward only to the extent that there is virtual certainty that the assets will be adjusted in future. Pursuant to the approval of the shareholders and the Hon'ble Rajasthan High Court's order dated 30th November, 2007 deferred tax liabilities from the year 2007-08 and onwards are met from Securities Premium Account as disclosed in note no. 4. B. Notes on Accounts 1. (a) Pursuant to the enactment of Company Act 2013, the Company revised its policy of providing debrciation in fixed assests effective from April 1, 2014 by debrciating carrying amount of fixed assets as on April 1, 2014 over the remaining useful life of the assets as per Schedule II as against at the rate and in the manner specified in Schedule XIV to the Companies Act 1956. Consequently,- (i) Where the useful life is nil as on 1st April 2014 debrciation of Rs. 128.42 Lacs (Rs. 84.77 Lacs net of deffered tax) has been deducted from retained earnings. (ii) Debrciation for the year is lower by Rs. 917.23 Lacs(Previous year Rs. 8.91 Lacs) being debrciation on the increased amount of assets due torevaluation and an equivalent amount has been transferred from the Revaluation Reserve to the Statement of Profit & Loss. 2. The Board of Directors has proposed a dividend of Rs. 2 per equity shares of Rs. 10 each for the year ended 31st March 2015 and the total proposed dividend amounts to Rs. 533.88 Lacs and corporate dividend tax to be Rs. 108.68 Lacs. 3 . Revenue expenditure on Research and Development amounting to Rs. 105.60 Lacs (Previous Year Rs. 317.35 Lacs) is shown in the Statement of Profit & Loss. Capital expenditure relating to Research and Development amounting to Rs. Nil (Previous Year Rs. 14.92 Lacs) has been included in fixed assets. 4. Capital work-in progress includes Machinery in Stock/under installation and building and other assets under erection. Addition to Fixed Assets include the following br-operative expenses: 5. The Company is engaged only in the cement business and there are no separate reportable segments. 6. Previous year's figures have been regrouped and rearranged wherever necessary. As per our Report of even date FOR JAIN PRAMOD JAIN & CO. Chartered Accountants FRN 016746 N (P.K.JAIN) Partner M.No.10479 Anil Kumar Mandot CFO & Sr. Jt. President (Commercial) Swadesh Agrawal Company Secretary Amal Ganguli, Director Aruna Makhan, Director N.G. Khaitan, Director Gaurav Goel, Director K.C. Jain, Director Vidula Jalan, Executive Director A.V. Jalan, Executive Director New Delhi May 04, 2015 |