Accounting Policies of Kachchh Minerals Ltd. Company

Mar 31, 2024

4 SIGNIFICANT ACCOUNTING POLICIES

4.01 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the
asset or transfer the liability takes place either:

In the principal market for the asset or liability, or In the absence of a principal market, in the most advantageous market for the
asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset
or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by
using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and
best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable

Level 3 -Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.

The Company''s Management determines the policies and procedures for both recurring fair value measurement, such as
derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets
held for distribution in discontinued operations.

At each reporting date, the Management analyses the movements in the values of assets and liabilities which are required to be
remeasured or re-assessed as per the Company''s accounting policies. For this analysis, the Management verifies the major inputs
applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.
The Management also compares the change in the fair value of each asset and liability with relevant external sources to determine
whether the change is reasonable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

4.02 Service concession arrangements:

Under Appendix A to Ind AS 11 - Service Concession Arrangements, these arrangements are accounted for based on the nature of
the consideration. The intangible asset model is used to the extent that the Company receives the right (i.e. a franchise) to charge
users of the public service. The financial asset model is used when the Company has an unconditional contractual right to receive
cash or another financial asset from or at the direction of the grant or for the construction services. When the unconditional right to
receive cash covers only part of the service, the two models are combined to account separately for each component. If the
Company performs more than one service (i.e., construction or upgrade services and operation services) under a single contract or
arrangement, consideration received or receivable is allocated by reference to the relative fair values of the services delivered,
when the amounts are separately identifiable.

4.03 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration
received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on
behalf of the government.

4.04 Taxes

Income tax expense for the year comprises of current tax and deferred tax. It is recognised in the Statement of Profit and Loss
except to the extent it relates to a business combination or to an item which is recognised directly in equity or in other
comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax rates at the Balance
Sheet date, and any adjustment to taxes in respect of previous years. Interest income/ expenses and penalties, if any, related to
income tax are included in current tax expense.

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial
reporting purposes and the corresponding amounts used for taxation purposes.

A deferred tax liability is recognised based on the expected manner of realisation or settlement of the carrying amount of assets and
liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period. Deferred tax assets are recognised
only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax
assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be
realised.

"Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts
and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset
when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and
the deferred tax liabilities relate to income taxes levied by the same taxation authority. the company has not credited any deferred
tax assets as availability of future taxable profit to realize deferred tax assets cannot be estimated with virtual certainty. Since
deferred tax assets exceeds deferred tax liabilities, no provision has been made for deferred Tax liabilities"

4.05 Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and where applicable accumulated impairment
losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of shelf-constructed assets
includes the cost of materials, direct labour and any other costs directly attributable to bringing the asset to a working condition for
its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased
software that is integral to the functionality of the related equipment is capitalized as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major
components) of property, plant and equipment.

Gains and losses on disposal with the carrying amount of Property, Plant and Equipment and are determined by comparing the
proceeds from disposal with the carrying amount of Property, Plant and Equipment and are recognized net within "other
income/other expenses" in the Statement of Profit and Loss.

Subsequent Cost

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable
that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The
carrying amount of the replaced part is de-recognized. The costs of the day-to-day servicing of property, plant and equipment are
recognized in the Statement of Profit and Loss.

Depreciation is calculated on Written down method basis using useful lives of the assets as prescribed under Schedule II to the
Companies Act 2013:

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year
end and adjusted prospectively, if appropriate.

4.06 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired is their fair
value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation
and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not
capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

Toll Collection Rights are amortised over the period of concession, using revenue based amortisation in respect of toll collection
rights recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS reporting
period. Under this method, the carrying value of the rights is amortised in the proportion of actual toll income for the year to expected
revenue for the balance concession period, to reflect the pattern in which the assets economic benefits will be consumed. At each
balance sheet date, the projected revenue for the balance concession period is reviewed by the Management. If there is any
change in the projected revenue from previous estimates, the amortisation of toll collection rights is changed prospectively to
reflect any changes in the estimates.

Intangible assets are assessed for impairment whenever there is an indication that the intangible asset may be impaired.

4.07 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection
with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the
borrowing costs.

4.08 Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions
will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods
that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised on a
systematic basis over the expected useful life of the related asset.

4.09 Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An
asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its
value in use. Recoverable amount is determined for an individual asset. unless the asset does not generate cash inflows that are
largely independent of those from other assets or Company''s assets. When the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

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Mar 31, 2014

GENERAL:

A The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) under the historical cost convention on an accrual basis in compliance with All material aspect of the Accounting Standard (AS) Notified by Companies Accounting Standard Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year

B All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956.

1.2 FIXED ASSETS:

Fixed Assets and additions thereto are capitalized & disclosed at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and borrowing cost upto its use.

1.3 DEPRECIATION:

A Depreciation on assets is provided on written down value method applying the rates specified in Schedule XIV to the Companies Act, 1956.

B Depreciation on additions to fixed assets is provided on pro-rata basis from the date of assets put to use.

C Depreciation on deletion / sale / dispose of assets has been calculated on pro-rata basis up to the

date of deletion / sale / disposal.

1.4 INVENTORIES:

Inventories at the year end are valued as under:

a) Raw material at cost.

b) Finished goods at cost or market value whichever is less.

c) Stores and tools, if significant & material at cost.

1.5 RETIREMENTBENEFIT:

Retirement benefit, gratuity payments for which no provisions made and the same is accounted on payment basis, if any.

1.6 REVENUE RECOGNITION:

SALES & OTHER INCOME:

Revenue from sales of goods is recognized upon passage of title to the customer which generally coincides with their delivery of goods. Other Income recognized on accrual basis on substantial completion of work.

1.7 BORROWING COST:

i) Borrowing cost that are attributable to the acquisition of qualifying assets are capitalized as a part of the cost of such fixed assets up to the date when such assets are ready for its intended use.

ii) All other borrowing cost not attributed to any assets is charged to revenue.

iii) Amount of borrowing cost capitalized as per AS-16 during the year was NIL.

1.8 SEGMENT REPORTING:

The Company is basically operating in one segment i.e. mining materials. Hence, no segment wise disclosure as per AS-17 is provided.

1.9 DEFERRED TAX:

As per AS-22 issued by ICAI, the Company has not credited any Deferred lax assets as availability of future taxable profit to realize deferred tax assets cannot be estimated with virtual certainty. Since Deferred Tax Assets exceeds Deferred Tax Liabilities, no provision has been made for Deferred Tax Liabilities.

1.10 IMPAIRMENT OF ASSETS fAS-281:

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 recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.11 Investments are generally shown at cost. However there is no investment at the end of the year

1.13 SUBSIDY.

(a) As per AS-12 total subsidy amount of Rs. 60 lacs is taken as deferred income in proportion of depreciation over the estimated useful life of assets i.e. 15 years for plant and machinery and 30 years for building. This method is consistently followed since many years.

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Mar 31, 2013

1. SIGNIFICANT ACCOUNTING POLICIES

GENERAL :

A The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) under the historical cost convention on an accrual basis in compliance with All material aspect of the Accounting Standard (AS) Notified by Companies Accounting Standard Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956.

1.2 FIXED ASSETS :

Fixed Assets and additions thereto are capitalized & disclosed at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and borrowing cost upto its use.

1.3 DEPRECIATION :

A Depreciation on assets is provided on written down value method applying the rates specified in Schedule XIV to the Companies Act, 1956. B Depreciation on additions to fixed assets is provided on pro-rata basis from the date of assets put to use. C Depreciation on deletion / sale / dispose of assets has been calculated on pro-rata basis up to the date of deletion / sale / disposal.

1.4 INVENTORIES :

Inventories at the year end are valued as under:

a) Raw material at cost.

b) Finished goods at cost or market value whichever is less.

c) Stores and tools, if significant & material at cost.

1.5 RETIREMENT BENEFIT :

Retirement benefit, gratuity payments for which no provisions made and the same is accounted on payment basis, if any.

1.6 REVENUE RECOGNITION : SALES & OTHER INCOME :

Revenue from sales of goods is recognized upon passage of title to the customer, which generally coincides with their delivery of goods. Other Income recognized on accrual basis on substantial completion of work.

1.7 BORROWING COST :

i) Borrowing cost that are attributable to the acquisition of qualifying assets are capitalized as a part of the cost of such fixed assets up to the date when such assets are ready for its intended use.

ii) All other borrowing cost not attributed to any assets is charged to revenue.

iii) Amount of borrowing cost capitalized as per AS-16 during the year was NIL.

1.8 SEGMENT REPORTING :

The Company is basically operating in one segment i.e. mining materials. Hence, no segment wise disclosure as per AS-17 is provided.

1.9 DEFERRED TAX :

As per AS-22 issued by ICAI, the Company has not credited any Deferred Tax assets as availability of future taxable profit to realize deferred tax assets cannot be estimated with virtual certainty. Since Deferred Tax Assets exceeds Deferred Tax Liabilities, no provision has been made for Deferred Tax Liabilities.

1.10 IMPAIRMENT OF ASSETS (AS-28) :

An Asset is to be 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 recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.11 Investments are generally shown at cost. However, there is no investment at the end of the year.

1.13 SUBSIDY:

(a) As per AS-12 total subsidy amount of Rs. 60 lacs is taken as deferred income in proportion of depreciation over the estimated useful life of assets i.e. 15 years for plant and machinery and 30 years for building. This method is consistently followed since many years.

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Mar 31, 2011

1.1 GENERAL :

A The accounts are prepared under the historical cost convention & accrual basis, -ccounts are made in accordance with the generally accepted accounting principle and the provisions of the Companies Act, 1956 as adopted earlier and consistently followed by the Company. The provision for retirement liabilities has not been made. The same was required to be made under confirmation with AS-15. The accounts confirm in all material aspects with Accounting Standards except AS-15 & AS-26 issued by the Institute of Chartered Accountants of India. Howevei; the following cases are accounted on cash basis. :

Expenses related : Retirement benefit, gratuity paid are accounted on payment basis, if any. This is required to be provided as per AS-15, has not been provided.

B Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principle.

2.2 FIXED ASSETS :

Fixed Assets and additions thereto are capitalized & disclosed at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and borrowing cost upto its use. The assets sold for which balance was written off.

2:3 DEPRECIATION :

A Depreciation on assets is provided on written down value method applying the rates specified in Schedule XIV to the Companies Act, 1956.

B Depreciation on additions to fixed assets is provided on pro-rata basis from the date of assets put to use.

C Depreciation on deletion / sale / dispose of assets has been calculated on pro-rata basis up to the date of deletion / sale / disposal.

2:4 CURRENT ASSETS:

Inventories :

Inventories at the year end are valued as under:

a) Raw material at cost.

b) Finished goods at cost or market value whichever is less.

c) Stores and tools, if significant & material at cost.

Advances :

Advances are stated at cost.

2:5 RETIREMENT BENEFIT :

Retirement benefit, gratuity payments for which no provisions made and the same is accounte on payment basis, if any.

2:6 REVENUE RECOGNITION :

SALES & OTHER INCOME :

Revenue from sales of goods is recognized upon passage of title to the customer whicr generally coincides with their delivery of goods. Other Income recognized on accrual basis 01 substantial completion of work.

2:7 BORROWING COST :

i) Borrowing cost that are attributable to the acquisition of qualifying assets are capitalize as a part of the cost of such fixed assets up to the date when such assets are ready for it intended use.

ii) All other borrowing cost not attributed to any assets is charged to revenue,

iii) Amount of borrowing cost capitalized as per AS-16 during the year was NIL.

2:8 SEGMENT REPORTING :

The Company is basically operating in one segment i.e. mining materials. Hence, no segmen wise disclosure as per AS-17 is provided.

2:9 DEFERRED TAX :

As per AS-22 issued by ICAI, the Company has not credited any Deferred Tax assets as availabilit of future taxable profit to realize deferred tax assets cannot be estimated with virtual certainty Since Deferred Tax Assets exceeds Deferred Tax Liabilities, no provision has been made foi Deferred Tax Liabilities.

2:10 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 i identified as impaired. The impairment loss recognized in prior accounting period is reversed i there has been a change in the estimate of recoverable amount.

2:11 Investments are generally shown at cost. Howevef there is no investment at the end of the year

2:13 SUBSIDY:

(a) As per AS-12 total subsidy amount of Rs. 60 lacs is taken as deferred income in proportion of depreciation over the estimated useful life of assets i.e. 15 years for plant and machinery and 30 years for building. This method is consistently followed since many years.

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Mar 31, 2010

1 The financial statements have been prepared on assumption that the company is a going concern.

2.1 GENERAL :

A The accounts are prepared under the historical cost convention & accrual basis. Accounts are

made in accordance with the generally accepted accounting principle and the provisions of the Companies Act, 1956 as adopted earlier and consistently followed by the Company. Provision for retirement liabilities has not been made. The same was required to be made under confirmation with AS-15. The accounts confirm in all material aspects with Accounting Standards except AS-15 & AS-26 issued by the Institute of Chartered Accountants of India. However, the following cases are accounted on cash basis. :

Expenses related : Retirement benefit, gratuity paid are accounted on payment basis, if any. This is required to be provided as per AS-15, has not been provided.

B Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principle.

2.2 FIXED ASSETS :

Fixed Assets and additions thereto are capitalized & disclosed at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and borrowing cost upto its use. The assets sold for which balance was written off.

2:3 DEPRECIATION :

A Depreciation on assets is provided on written down value method applying the rates specified in Schedule XIV to the Companies Act, 1956. B Depreciation on additions to fixed assets is provided on pro-rata basis from the dat of assets put to use. C Depreciation on deletion / sale / dispose of assets has been calculated on pro-rata basis up to the date of deletion / sale / disposal.

2:4 CURRENT ASSETS :

Inventories :

Inventories at the year end are valued as under:

a) Raw material at cost.

b Finished goods at cost or market value whichever is less.

c) Stores and tools, if significant & material at cost.

Advances :

Advances are stated at cost.

2:5 RETIREMENT BENEFIT :

Retirement benefit, gratuity payments for which no provisions made and the same is accounted on payment basis, if any

2:6 REVENUE RECOGNITION :

SALES & OTHER INCOME:

Revenue from sales of goods is recognized upon passage of title to the customer, which generally coincides with their delivery of goods. Other Income recognized on accrual basis on substantial completion of work.

2:7 BORROWING COST:

i) Borrowing cost that are attributable to the acquisition of qualifying assets are capitalized as a part of the cost of such fixed assets up to the date when such assets are ready for its

ii) AlfoTh ed borrowing cost not attributed to any assets is charged to revenue. iii) Amount of borrowing cost capitalized as per AS-16 during the year was NIL.

2:8 SEGMENT REPORTING :

The Company is basically operating in one segment i.e. mining materials. Hence, no segment wise disclosure as per AS -17 is provided.

2:9 DEFERRED TAX :

As per AS-22 issued by ICAI,the Company has not credited any Deferred Tax assets as availability . of future taxable profit to realize deferred tax assets cannot be estimated with virtual certainty Since Deferred Tax Assets exceeds Deferred Tax Liabilities, no provision has been made for

2:10 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 recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

2:11 Investments are generally shown at cost. However, there is no investment at the end of the

2:12 SUBSIDY:

(a) As per AS-12 total subsidy amount of Rs. 60 lacs is taken as deferred income in proportion of depreciation over the estimated useful life of assets i.e. 15 years for plant and machinery and 30 years for building. This method is consistently followed since many years.

3: PROVISIONS. CONTINGENT LIABILITIES & CONTINGENT A SSETS ( AS-29) :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events & 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 recoqnized nor disclosed in the financial statements.