SENSEX NIFTY India | Accounting Policy > Steel - Sponge Iron > Accounting Policy followed by Lloyds Metals and Energy - BSE: 512455, NSE: LLOYDMETAL

Lloyds Metals and Energy

BSE: 512455|NSE: LLOYDMETAL|ISIN: INE281B01024|SECTOR: Steel - Sponge Iron
May 03, 11:54
0.6 (2.23%)
Lloyds Metals and Energy is not traded in the last 30 days
« Mar 14
Accounting Policy Year : Mar '15
A) System of Accounting
 These financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on the accrual basis except for certain financial
 instruments which are measured at fair values. GAAP comprises mandatory
 accounting standards as prescribed under Section 133 of the Companies
 Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts)
 Rules, 2014, the provisions of the Act (to the extent notified).
 Accounting policies have been consistently applied except where a newly
 issued accounting standard is initially adopted or a revision to an
 existing accounting standard requires a change in the accounting policy
 hitherto in use.
 B) Fixed Assets
 i) All fixed assets are valued at cost net of Cenvat unless if any
 assets are revalued and for which proper disclosure is made in the
 ii) In the case of ongoing projects, all pre-operative expenses for the
 project incurred upto the date of commercial production are capitalized
 and apportioned to the cost of respective assets.
 C) Depreciation
 Depreciation on all the assets has been provided on Straight Line
 Method (SLM)as per Schedule II of the Companies Act, 2013.
 Assets individually costing Rs.5,000 or less are depreciated fully in the
 year of purchase.
 D) Inventories
 The general practice adopted by the Company for valuation of inventory
 is as under
 Raw materials : *At lower of cost and net realizable value.  Store &
 spares : At cost (weighted average cost)
 Work in process : At cost
 Finished goods : At cost or net realizable value, which ever is lower
 (Also refer Accounting Policy G) Traded goods : At cost Scrap material
 : At cost or net realizable value, which ever is lower
 *Material and other supplies held for use in the production of the
 inventories are not written down below cost if the finished goods in
 which they will be incorporated are expected to be sold at or above
 E) Investments
 Investments are valued at cost of acquisition, which includes charges
 such as Brokerage, Fees and Duties.
 F) Expenditure during construction period
 Expenditure incurred on projects under implementation are being treated
 as pre-operative expenses pending allocation to the assets which are
 being apportioned on commencement of commercial production.
 G) Excise Duty
 The Excise duty payable on finished goods dispatches is accounted on
 the clearance thereof from the factory premises. Excise duty is
 provided on the finished goods lying at the factory premises and not
 yet dispatched as at the year end as per the Accounting Standard 2
 Valuation of Inventories
 H) Customs Duty
 Customs Duty payable on imported raw materials, components and stores
 and spares is recognized to the extent assessed by the customs
 I) Foreign Currency Transaction
 Foreign currency transactions during the accounting year are translated
 at the rates prevalent on the transaction date. Exchange differences
 arising from foreign currency fluctuations are dealt with on the date
 of payment/receipt. Assets and Liabilities related to foreign currency
 transactions remaining unsettled at the end of the year are translated
 at the year end rate. The exchange difference is credited / charged to
 Profit & Loss Account in case of revenue items and capital items.
 J) Provision for Gratuity
 Provision for Gratuity is made on the basis of actuarial valuation
 based on the provisions of the Payment of Gratuity Act, 1972.
 K) Leave Salary
 Provision is made for value of unutilized leave due to employees at the
 end of the year.
 L) Customs Duty Benefit
 Customs duty entitlement eligible under pass book scheme / DEPB is
 accounted on accrual basis. Accordingly, import duty benefits against
 exports affected during the year are accounted on estimate basis as
 incentive till the end of the year in respect of duty free imports of
 raw material yet to be made.
 M) Amortization of Expenses
 i) Equity Issue Expenses :
 Expenditure incurred in equity issue is being treated as Deferred
 Revenue Expenditure to be amortized over a period of ten years.
 ii) Preliminary Expenses :
 Preliminary expenses are amortized over a period of ten years.
 iii) Debenture Issue Expenses :
 Debenture Issue expenditure is amortized over the period of the
 N) Impairment of Assets
 The Company determines whether a provision should be made for
 impairment loss on fixed assets (including Intangible Assets), by
 considering the indications that an impairment loss may has occurred in
 accordance with Accounting Standard - 28 Impairment of Assets.
 Where the recoverable amount of any fixed assets is lower than its
 carrying amount, a provision for impairment loss on fixed assets is
 O) Revenue Recognition
 Sales/Income of contracts/orders are booked based on work billed.
 Sales are net of sales return & trade discounts.
 P) Contingent Liability :
 1 Unprovided Contingent Liabilities are disclosed in the accounts by
 way of notes giving the nature and quantum of such liabilities.
Source : Dion Global Solutions Limited
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