| 1 Basis of Accounting
The Financial Statements are prepared under the historical cost
convention, on the accrual basis of accounting and comply with the
provisions of Companies Act, 2013, accounting principles generally
accepted in India and Accounting Standards issued by The Institute of
Chartered Accountants of India (ICAI) to the extent applicable.
2 Revenue Recognition
a) Sales including export sales and trading sales are recognized when
goods are dispatched from the factory and are recorded at net of
shortages, claims settled, rate differences, rebate allowed to
customers.
b) Export Sales are booked at the rate on the date of transaction and
the resultant gain or loss on realization or on translation is
accounted as "Foreign Exchange Rate Fluctuation" and is dealt with in
the statement of Profit and Loss Account.
3 Fixed Assets and Depreciation
Fixed assets, other than Plant & Machinery, are valued and stated at
cost less accumulated depreciation calculated on the basis of Written
Down Value Method In case of Plant & Machinery, depreciation has been
provided on Straight Line Method (SLM) basis. The Fixed Assets being
Vehicles purchased during the current financial year has been
depreciated on Straight Line Method.
Consequent to the enactment of Companies Act, 2013 and the
applicability of accounting period commencing from 1st April, 2014, the
company has reassessed the remaining useful life of fixed assets in
accordance with the provisions prescribed under Schedule II of the Act.
In case of assets which have completed their useful life, the carrying
value (net of residual value) as at 1st April, 2014 amounting to
Rs.92,618/- has been adjusted to Retained Earnings and Rs 41,416/- has
been adjusted against Differed Tax Liability. and in case of other
assets the carrying value (net of residual value) is being depreciated
over the remaining useful life.
The Depreciation and Amortization Expenses charge for the year ended
31st March, 2015 would have be higher by Rs 43,026/- , had the company
continued with the previous assessment of useful life of such assets.
4 Inventories
Inventories of Raw Materials, , Packing material are stated at Cost,
Finished goods are stated at Cost or Net Realizable Value whichever is
lower, Coal, Goods in process, Stores and Spares, as certified and
Valued by Management. Cost comprises of cost of purchases, cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition. Costing formula used is
First-in-First-out (FIFO).
5 Investments
Investments are classified as Long Term Investments. Long term
investments are stated at Cost. Provision is made for diminution in the
value of Long term Investments to recognize a decline, if any other
than temporary in nature.
6 Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets,
liabilities, revenue and expenses and disclosure of contingent
liabilities on the date of financial statements. The recognition,
measurement, classification or disclosure of an item or information in
the financial statements has been made relying on these estimates.
7 Impairment of Assets
Consideration is given at each Balance Sheet date to determine whether
there is any indication of impairment of the carrying amounts of the
Company's assets. If any indication exists, an asset's recoverable
amount is estimated. An impairment loss is recognized wherever the
carrying amount of an assets exceeds its recoverable amount. The
recoverable amount is the greater of the net selling price and value in
use.
8 Employee Benefits
a) Short term employee benefits are recognized as an expense at
undiscounted amount in the Profit & Loss Account of the year in which
the related service is rendered.
b) Post employment and other long term employee benefits are recognized
as an expense in the Profit & Loss Account in the year of payment.
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