Shree Narmada Aluminium Industries Ltd. कंपली की लेखा नीति

Mar 31, 2014

(I) Accounting Convention:

(a) The Accounts have been prepared to comply with the Accounting Standards referred to in section 211(3C) of the Companies Act, 1956.

(b) The Company follows the Mercantile System of accounting and recognizes Income and Expenditure on Accrual Basis, except the income/expenditure which is not reasonably ascertainable.

(ii) Fixed Assets :

Fixed assets are recorded at cost of acquisition or construction cost (as reduced by CENVAT Credit as applicable) along with capitalised portion of specific or allocated expenses.

(iii) Depreciation :

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with and at the rates specified in Schedule XIV of the Companies Act, 1956; Additions to fixed assets are depreciated on pro rata basis for number of days used during the year. Asset costing less than Rs 5000/- is 100% depreciated.

(iv) Inventories:

Stock is valued at cost or market value whichever is lower. Cost is calculated on First-In-First-Out . basis after adjusting Sales tax and other set-off, if applicable.

(v) Revenue Recognition :

* Sale of Goods:

Sale of goods is recognised at the point of transfer of risks and rewards to customers.

* Commission Income:

Commission income is recognised on completion of the service.

(vi) Retirement Benefits:

The Company''s contribution to Provident Fund is charged to the Statement of Profit and Loss.

Other long term employee benefits comprise compensated absences which are provided based on an actuarial valuation carried out in accordance with AS 15 as at the Balance Sheet date.

The gratuity liability, which is a defined benefit plan, is provided on the basis of actuarial valuation as on Balance Sheet date on the projected unit credit method

(vii) Foreign Currency Transactions:

Transactions in foreign currency are recorded at the rates of exchange in force at the time of the transactions effected as prescribed in Accounting Standard -11 "The Effects of Changes in Foreign Exchange Rates" prescribed by Institute of Chartered Accountants of India.

(viii) Government Grants :

Subsidies received from Central and State Governments are accounted as Capital Reserve or credited to Profit and Loss a/c considering the nature of the Subsidy, the purpose for which it has been received and condition attached to that Subsidy.

(ix) Debtors/Creditors/Advances :

Undisputed Debtors/Creditors balances/ advances outstanding for more than three years are provided/ adjusted at the financial year end after identification and ascertainment about their recoverability/ payments.

(x) Borrowing Cost:

Borrowing Cost that is directly attributable to the acquisition, construction or production of a qualifying asset is capitalised.

(xi) Taxes on Income :

Provision for current tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961. Company is registered as a sick Company with BIFR and hence MAT provisions related to Income Tax are not applicable.

Deferred Tax resulting from "timing difference" between accounting income and taxable income, for a period, that originate in one period and are capable of reversal in one or more subsequent period are recognised, subject to prudence, using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

(xii) Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value.

An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

(xiii) Provisions, Contingent liabilities and Contingent Asset:

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent Asset is neither provided nor shown in notes on accounts.

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Mar 31, 2013

(I) Accounting Convention;

i) The Accounts have been prepared to comply with the Accounting standards referred to in section 211 (3C) of the companies Act,1956.

(b) The Company follows the Mercantile System of accounting and recognizes Income and Expenditure and Accrual Basis, except the income /expenditure which is not reasonably ascertainable.

(ii) Fixed Assets :

Fixed assets are recorded at cost of acquisition or construction cost as reduced by CENVAT Credit applicable) along with capsized portion of specific or locales expenses.

(iii) Depreciation;

depreciation on Fixed Assets is provided on straight line Method in accordance with and at the rates specified In schedule XIV of the Companies Act, 1956; Additions to fixed assets are depreciated on pro rata basis for number or days use during the year. Asset costing less than Rs 5000/- is 100% depreciated.

(Iv) Inventories:

Stock is valued at cost or market value whichever is lower. Cast is calculated on First - in- out basis altar adjusting Styles tax and other set-off. If applicable.

(y) Revenue Recognition :

- Sale of Goods:

Sale of goads is recognized at the point of transfer of risks and rewards in customers.

- Commission Income:

Commission Income Is recognized on completion of the service

(vl) Retirement Benefits:

Short perm employs benefits are recopied as expanse at the undiscounted amount In the Profit and Loss account of the year in which the related service is rendered

The liabilities far garrulity and privilege leaves encashment on Retirement/Serration sure accounted on the& basis of Company Polity and provided for the same in the books of account,

(vii) Foreign Currency Transactions:

Transactions m foreign c-uneven are recorded at that rules of exchange in force el the lime of the ban scions effected air presented m Accounting Standard -11 "The Effects of Changes in Foreign Exchange Rates'' prescribed by Institute of Chartered Accountants of India

(ix) Debtors/Creditors/Advances;

Undisputed Debtors,'' Creditor balances advances outstanding than three years are provided/ adjust at the financial year end after identification and ascertainment about their recoverability/ payment.

(x) Borrowing Cost;

Borrowing Cost that director construct an or production of a company.

(xi) Taxes on Income :

Provision for current tax is made on the basis of estimated taxable income for the current accounting period and In accordance with the provisions of Income Tax Act,1956.

Deferred Tax resulting from "timing difference" between accounting income and taxable income, for a denture, that originate In one period and are capable of reveal In one or more subsequent period ate recognized. subject to prudence, using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet dale.

(xll) Impairment of Assets:

An asset Is treated as impaired when the carrying cost of assets exceeds its recoverable value An impairment loss is charged to the Profit and Loss Account in the year in which an asset Is ratified as Impairer The impairment loss recognized are pirogue information pinworms Is have been a change In the Estimate of reversible amount.

(xiii) Provisions, Contingent liabilities and Contingent Asset:

The company creates a provision when there is present obligation as a mystic of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A, disclosure for 3 contingent Liability is made when there is a possible contingent or present obligation that may, but provident will not, require an outflow of resources, Contingent assets is neither proved are shown in notes on account.

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Mar 31, 2010

(i) Accounting Convention:

(a) The preparation of restated financial statements in conformity with generally accepted accounting principles (GAAP) in India requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates

(b) The Accounts have been prepared to comply with the Accounting Standards referred to in section 211(3C) of the Companies Act, 1956.

(c) The Company follows the Mercantile System of accounting and recognizes Income and Expenditure on Accrual Basis, except the income/expenditure which is not reasonably ascertainable.


Fixed assets are recorded at cost of acquisition or construction cost (as reduced by CENVAT Credit as applicable) along with capitalised portion of specific or allocated expenses.

(iii) Depreciation :

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with and at the rates specified in Schedule XIV of the Companies Act, 1956; Additions to fixed assets are depreciated on pro rata basis for number of days used during the year.

(iv) Inventories:

a) Stocks of Raw Materials are valued at cost or market value whichever is lower. Cost is calculated on First-In-First-Out basis after adjusting CENVAT credit and Sales tax set-off, if applicable.

b) (i) Finished goods lying at depots/with consignees are valued at factory cost (apportioned) or

Realisable Value (including excise duty and other charges) whichever is lower.

(ii) Other Finished Goods are valued at Factory cost (apportioned) (including Excise duty) or Net Realisable Value (including Excise duty) whichever is lower.

c) Work-in-Process including goods lying with outside party for job-work is valued at cost or market value whichever is lower net of packing cost, as per past practice except in case of Raw material pending for process which is being continuously valued at cost on First-rn-First-out basis.

d) Stores and spares are valued at cost on First-in-First-Out basis. Stock of Dies is valued at cost on First-in-First-Out basis less amounts written off at specified rates as prescribed in Schedule XIV of Companies Act, 1956.

e) Materials-in-Transit is valued at cost

(v) Revenue Recognition :

Sale of goods is recognised at the point of despatch of goods to customers except in case of consignment sales where it is recognised on the basis of confirmation received of actual sales from the consignment agent. Sales are inclusive of Job Work, Consignment Sales and exclusive of sales tax. Works Contract revenue is accounted on percentage completion method as verified and certified by the management.

(vi) Retirement Benefits:

Liability for gratuity and privilege leave encashment an Retirement/Separation are accounted for on the basis of actuarial valuation reports up to.FY 2007-08. After FY 2007-08 liabilities for the same are calculated by the management as per Payment of Gratuity Act, 1972 and Payments of Wages Act (Read with Company Policy) and provided for the same in the books of account.

(vii) Accounting of CENVAT Credit :

CENVAT is credited /accounted on receipt of materials and services rendered to us and excise duty is paid as net of CENVAT availed,

(viii) Foreign Currency Transactions:

Transactions in foreign currency are recorded at the rates of exchange in force at the time of the transactions effected as prescribed in Accounting Standard -11 "The Effects of Changes in Foreign Exchange Rates" prescribed by Institute of Chartered Accountants of India.

(ix) Government Grants :

Subsidies received from Central and State Governments are accounted as Capital Reserve or credited to Profit and Loss a/c considering the nature of the Subsidy, the purpose for which it has been received and condition attached to that Subsidy.

(x) Export Benefits :

Consistent with past practice export incentives are accounted as and when the claims there from have been admitted by the authorities.

(xi) Debtors/Creditors/Advances :

Undisputed Debtors/Creditors balances/ advances outstanding for more than three years are provided/ adjusted at the financial year end after identification and ascertainment about their recoverability/ payments.

(xii) Borrowing Cost:

Borrowing Cost that is directly attributable to the acquisition, construction or production of a qualifying asset is capitalised.

(xiii) Taxes on Income :

Provision for current tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax resulting from "timing difference" between accounting income and taxable income, for a period, that originate in one period and are capable of reversal in one or more subsequent period are recognised, subject to prudence, using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

(xiv) Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

(xv) Provisions and Contingent liabilities:

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.

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Mar 31, 2009

(i) Accounting Convention:

(a) The Accounts have been prepared to comply with the Accounting Standards referred to in section 211 (3C) of the Companies Act, 1956.

(b) The Company follows the Mercantile System of accounting and recognizes Income and Expenditure on Accrual Basis, except the income/expenditure which is not reasonably ascertainable.

(ii) Fixed Assets:

Fixed assets are recorded at cost of acquisition or construction cost(as reduced by CENVAT Credit as applicable) along with capitalised portion of specific or allocated expenses.

(iii) Depreciation:

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with and at the rates specified in Schedule XIV of the Companies Act, 1956; Additions to fixed assets are depreciated on pro rata basis for number of days used during the year.

(iv) Inventories:

a) Stocks of Raw Materials are valued at cost or market value whichever is lower. Cost is calculated on First-In-First-Out basis after adjusting CENVAT credit and Sales tax set-off, if applicable.

b) (I) Finished goods lying at depots/with consignees are valued at factory cost (apportioned)

or Realisable Value (including excise duty and other charges) whichever is lower.

(ii) Other Finished Goods are valued at Factory cost (apportioned) (including Excise duty) or Net Realisable Value (including Excise duty) whichever is lower.

c) Work-in-Process including goods lying with outside party for job-work is valued at cost or market value whichever is lower net of packing cost, as per past practice except in case of Raw material pending for process which is being continuously valued at cost on First-in- First-out basis.

d) Stores and spares are valued at cost on First-in-First-Out basis. Stock of Dies is valued at cost on First-in-First-Out basis less amounts written off at specified rates as prescribed in Schedule XIV of Companies Act, 1956.

e) Materials-in-Transit is valued at cost.

(v) Revenue Recognition:

Sale of goods is recognised at the point of despatch of goods to customers except in case of consignment sales where it is recognised on the basis of confirmation received of actual sales from the consignment agent. Sales are inclusive of Job Work, Consignment-Sales and exclusive of sales tax. Works Contract revenue is accounted on percentage completion method as verified and certified by the management.

(vi) Extra Ordinary Item:

The Company has during the year executed order of the Honble High Court of Gujarat and net income of material nature is being stated separately.

(vii) Retirement Benefits:

Liability for gratuity and privilege leave encashment on Retirement/Separation are accounted for on the basis of actuarial valuation reports up to FY 2007-08.During the current year the liabilities for the same are calculated by the management as per Payment of Gratuity Act, 1972 and Payments of Wages Act (Read with Company Policy) and provided for the same in the books of account.

(viii) Accounting of CENVAT Credit:

CENVAT is credited /accounted on receipt of materials and services rendered to us and excise duty is paid as net of CENVAT availed.

(ix) Foreign Currency Transactions:

Transactions in foreign currency are recorded at the rates of exchange in force at the time of the transactions effected as prescribed in Accounting Standard -11 "The Effects Of Changes In Foreign Exchange Rates" prescribed by Institute of Chartered Accountants of India.

(x) Government Grants:

Subsidies received from Central and State Governments are accounted as Capital Reserve or credited to Profit and Loss a/c considering the nature of the Subsidy, the purpose for which it has been received and condition attached to that Subsidy.

(xi) Export Benefits :

Consistent with past practice export incentives are accounted as and when the claims there from have been admitted by the authorities.

(xii) Debtors/Creditors/Advances:

Undisputed Debtors/Creditors balances/ advances outstanding for more than three years are provided/ adjusted at the financial year end after identification and ascertainment about their recoverability/payments.

(xiii) Taxes on Income:

Provision for current tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax resulting from "timing difference" between accounting income and taxable income, for a period, that originate in one period and are capable of reversal in one or more subsequent period are recognised, subject to prudence, using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

(xiv) Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

(xv) Provisions and Contingent liabilities:

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.