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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: INE281B01032|SECTOR: Steel - Sponge Iron
Apr 20, 16:00
-0.15 (-0.93%)
VOLUME 90,128
Lloyds Metals and Energy is not traded in the last 30 days
Mar 15
Accounting Policy Year : Mar '16

System of Accounting

The financial statements are prepared and presented
under the historical cost convention on the accrual
basis of accounting in accordance with accounting
principal generally accepted in India and comply with the
Accounting Standards issued by the Institute of Chartered
Accountants of India and the relevant provisions of the
Companies Act, 2013 as applicable.

Fixed Assets:


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 Accounts.

In the case of ongoing projects, all pre-operative
expenses for the project incurred up to the dates
of commercial production are capitalized and
apportioned to the cost of respective assets.

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 ' 5,000
or less are depreciated fully in the year of purchase.
Lease hold land will be amortized on the expiry of Lease

D) Inventories:

The general practice
valuation of inventory is
Raw materials :

Store & Spares
Work in Process
Finished Goods




Category / Group of Asset

Useful life



Plant and Machinery


Plant and machinery - Power


Computer Hardware


Electrical Installation


Air Conditioners


Office equipments


Furniture and Fixtures


Motor Vehicle


adopted by the Company for
as under:

*At lower of cost and net
realizable value.

At cost (weighted average cost)
At cost

Traded Goods
Scrap Material

Energy Saving

At cost or net realizable value,
whichever is lower
(Also refer Accounting Policy G)
At cost

At cost or net realizable value,
whichever is lower
At net realizable value

Certified Emission : At net realizable value

*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 cost.

  1. Investments:

Investments are valued at cost of acquisition, which
includes charges such as Brokerage, Fees and Duties.

  1. 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.

  1. 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 endas per the
Accounting Standard 2
“Valuation of Inventories”

  1. Customs Duty:

Customs Duty payable on imported raw materials,
components and stores and spares is recognized to the
extent assessed by the customs department.

  1. 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:

  1. Equity Issue Expenses :

Expenditure incurred in equity issue is being treated
as Deferred Revenue Expenditure to be amortized
over a period of ten years.


  1. Preliminary Expenses:

Preliminary expenses are amortized over a period of
ten years.

  1. Debenture Issue Expenses:

Debenture Issue expenditure is amortized over the
period of the Debentures.

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 made.

O) Revenue Recognition:



Sales/Income of contracts/orders are booked based
on work billed. Sales are net of sales return & trade

P) Certified Emission Reductions (CER’S ) and Energy
Savings certificate (ESCerts’):

During the year, the Company has received CER’s
(Certified Emission Reductions) of 71,302 units and
Energy Savings certificate (ESCerts) of 27,896 Nos.

The management has estimated to value the CER’s @

  1. 30 Euro per unit and ESCerts’ @ ' 3,000 per Certificate.
    It has been disclosed in Inventories.

Source : Dion Global Solutions Limited
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