1.1 Basis of Accounting :
The financial statements are prepared as under :
(a) on the historical cost convention,
(b) on a going concern basis,
(c) in accordance with the generally accepted accounting principles,
(d) on an accrual system of accounting,
(e) in accordance with the Accounting Standards referred to in Section
211 (3C) of the Companies Act, 1956 which have been prescribed by the
Companies (Accounting Standards) Rules, 2006,
1.2 Use of Estimates:
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of revenues
and expenses during the reporting year, the reported amounts of assets
and liabilities and the disclosures of contingent liabilities as on the
date of the financial statements. Examples of such estimates include
useful life of Fixed Assets, provision for doubtful debts/ advances,
deferred tax, etc. Actual results could differ from those estimates.
Such difference is recognised in the year/s in which the results are
known / materialised.
1.3 Revenue Recognition :
The Company generally follows accrual system of accounting as required
under Section 209(3) (b) of the Companies Act, 1956. However,
considering uncertainties and / or difficulties involved in estimation
of liabilities and / or final determination of refund claims filed by
the Company, the following items are considered to be accrued and
accounted only when settled or agreed to with the party and / or
receipts of necessary amount.
(a) Claim against Railways for shortages / damages for cement in
(b) Insurance Claims
(c) Scrap Sales
(d) Octroi Refund Claims
1.4 Fixed Asset and Depreciation :
(a) Fixed assets include all expenditure of capital nature and are
stated at cost (net of Cenvat, wherever applicable) less accumulated
(b) Depreciation on fixed assets is provided on straight-line method at
the rates prescribed in Schedule XIV to the Companies Act, 1956.
(c) In respect of addition and sales of assets during the year,
depreciation is provided on prorata monthly basis.
1.5 Impairment of Fixed Assets :
(a) Consideration is given at each balance sheet date to determine
whether there is any indication of impairment of the carrying amount of
the Company''s fixed assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
(b) Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset no longer exists or have decreased.
1.6 Inventories :
(a) Inventories are stated at cost or net realizable value, whichever
is lower. For this purpose cost has been arrived at on the basis of
moving weighted average. Cost of finished goods include all direct
cost, other related factory overheads and excise duty.
(b) Provision for obsolescence is made wherever considered necessary.
1.7 Sales :
(a) Sales figures are inclusive of excise duty, but are net of sales
tax, sales returns and rate difference adjustment
(b) Export sales are accounted on the basis of the rate of foreign
exchange prevailling on dates of bills of lading / mate receipts.
(c) Export benefits on account of entitlement to import duty free
materials are recognized in the year of export.
1.8 Foreign Currency Transactions :
Transactions of foreign currency are recorded at the exchange rate as
applicable at the date of transaction.
Monetary Assets / liabilities outstanding at the close of the financial
year are stated at the contracted and / or appropriate exchange rate at
the close of the year and the gain / loss is credited / charged to
Statement of Profit & Loss.
1.9 Employee Benefits :
(a) Short term employee benefits are charged off in the year in the
which the related service is rendered.
(b) Post employment employee benefits under defined contribution plans
are charged off in the year in which the employee has rendered
services. In respect of Defined Benefit Plans, the amount charged off
is recognised at the present value of the amounts payable determined
using actuarial valuation techniques. Actuarial gains and losses in
respect of post employment and other long term benefits are charged to
Statement of Profit & Loss.
1.10 Provisions, Contingent Liabilities and Contingent Assets :
(a) Provisions involving substantial degree of estimation in
measurement are recognized when there is a present obligation as a
result of past event and it is probable that there will be an outflow
of resources. Contingent Liabilities are not recognized but are
disclosed in the notes. Contingent Assets are neither recognized nor
disclosed in the Financial Statements.
(b) Provisions, Contingent Liabilities and Contingent Assets are
reviewed at each Balance Sheet date in accordance with the Accounting
Standard AS-29 on Provisions, Contingent Liabilities And Contingent
Assets notified under the Companies (Accounting Standards) Rules,
1.11 Borrowing Cost :
Borrowing costs, attributable to the acquisition / construction of
qualifying assets, are capitalized. Other borrowing costs are charged
to Statement of profit and loss.
1.12 Taxation :
(a) Income tax charge or credit comprises current tax and deferred tax
charge or credit.
(b) Current Income tax is measured at the amount expected to be paid to
Tax authorities in accordance with the Income Tax Act, 1961.
(c) Deferred tax asset or liability on timing difference are recognised
using current rates and tax laws that have been enacted or
substantively enacted by the Balance Sheet date. Deferred tax assets
are recognised to the extent there exists a virtual certainty that
these assets can be realised in future. Net deferred tax asset is
recognised based on the principles of prudence. Deferred tax assets and
liabilities are reviewed at each Balance Sheet date.
1.13 General :
Accounting policies not specifically referred to are consistent with
generally accepted accounting practice.
(e) Rights, preferences and restrictions :
(i) The Company has only one class of equity shares referred to as
Equity shares having a par value of Rs. 10. Each holder of equity
share is entitled to one vote per share.
(ii) Dividends, if any, is declared and paid in Indian Rupees. The
dividend, if any, proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
(iii) In the event of liquidation of the company, the holders of equity
shares will be entitled to receive any of the remaining assests of the
company, after distribution of all preferential amounts. However, no
such preferential amounts exist currently. The distribution will be in
proportion to the number of equity shares held by the shareholders.
(i) Trade payables include Rs NIL (Previous year Rs NIL) due to creditors
registered with the Micro, Small and Medium Enterprises Development
Act, 2006 (MSME).
(ii) No interest is paid / payable during the year to Micro, Small and
(iii) The above information has been determined to the extent such
parties could be identified on the basis of information available with
the Company regarding the status of suppliers under the MSME.
(i) Term loan of Rs 11.59 lacs from a Financial Institution shown under
Current maturities of long-term debts is secured by first mortgage on
all movable and immovable assets of the Company, both present and
future. The balance is under reconciliation and payable immediately