Accounting Policies of N D Metal Industries Ltd. Company

Mar 31, 2024

₂ Significant accounting policies, accounting judgements, estimates and ssumptions
followed in the preparation and presentation of the financial statements

2.1 Basis of Preparation and Presentation

The Financial Statements have been prepared on the historical cost basis. The Financial
Statements of the Company have been prepared to comply with the Indian Accounting
standards (‘Ind AS’), including the rules notified under the relevant provisions of the Companies
Act, 2013, amended from time to time.The Company’s Financial Statements are presented in
Indian Rupees (''), which is also its functional currency and all values are rounded to the nearest
Lakhs (''00,000), except when otherwise indicated

2.2 Current and Non-Current Classification

The Company presents assets and liabilities in the Balance Sheet based on Current/ Non¬
Current classification. As per company’s normal operating cycle and other criteria set out in
Schedule III ofthe Act.

2.3 Property, plant and equipment

Property, plant and equipment are recorded at their cost of acquisition, net of goods and service
tax, less accumulated depreciation and impairment losses, if any. The cost thereof comprises of
its purchase price, including import duties and other non-refundable taxes or levies and any
directly attributable cost for bringing the asset to its working condition for its intended use.

2.4 Depreciation

Depreciation on Property, Plant and Equipment is provided on SLM Method in accordance with
the provisions of 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, ifappropriate.

2.5 Inventories

Items of inventories are measured at lower of cost and net realisable value after providing for
obsolescence, if any, as per IND AS 2

2.6 Revenue Recognition

Revenue from contracts with customers is recognised when control ofthe goods or services are
transferred to the customer at an amount that reflects the consideration entitled in exchange for
those goods or services. The Company is generally the principal as it typically controls the
goods or services before transferring them to the customer.

2.7 Deferred Tax Assets / Liability :

Deferred tax is provided using the balance sheet approach on temporary differences at the
reporting date between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purpose at reporting date. Deferred income tax assets and liabilities are
measured using tax rates and tax laws that have been enacted or substantively enacted by the
balance sheet date and are expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled

2.8 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss (before other
comprehensive income) for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. Partly paid equity shares are
treated as a fraction of an equity share to the extent that they were entitled to participate in
dividends relative to a fully paid equity share during the reporting year.

Note : 29

Segment Reporting :

The Company has segement of activities namely Trading & Manufacturing of Non- ferious metal and majority of the capital of the
company employed in the Trading & Manufacturing activity. However, Company has deployed it temperory funds in the various
investment for earning rent and sharing of profit. Hence income of such investment has not been considering as separate segement for
reporting purpose.

Note : 30

In respect of Old outstanding the necessary approval has been sought from the authorised dealers.

Note : 31

In the Opinion of the management the Current assets, Loan and Advances are of the same value as stated in the Balance Sheet if realized
in the normal course of business.

Note : 32

Sundry Debtors, Loans and Advances and Sundry Creditors are subject to reconciliation and confirmation from parties.

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Mar 31, 2015

1. Basis of Preparation of financial Statements:

a. The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

b. The Company generally follows mercantile system of accounting and recognizes significant items of Income and Expenditure on accrual basis.

2. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires that the management of the company makes estimates and assumptions that affect the reported amounts of income and expenses of the year, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts / advances, future obligations in respect of retirement benefit plans etc. Actual results could differ from these estimates.

3. Fixed Assets:

Tangible Assets are stated at Cost less accumulated depreciation and net of impairment, if any. The Cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working conditions for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price. All direct cost attributable to acquisition / Installation of Assets are capitalized. Borrowing Cost if any during the construction period shall be added to the cost of eligible tangible assets.

4. Depreciation:

The Company is providing depreciation on Fixed Assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 instead of rates and manner prescribed in schedule 11 of the companies Act, 2013.

Depreciation on addition is charged proportionally from the date of acquisition / installation of Assets.

5. Inventories:

Inventories is mentioned and valued on FIFO basis as follows:

a) Finished Goods :-at cost or Net realizable value whichever is lower, after Providing for the value of excise duty payable.

b) Raw Material :- at cost

c) Stock In Transit : - at cost.

d) Sores & Spares : - at cost.

el Ash & Dust :- at Realizable Value

6. Revenue Recognition:

a. Sales are recognized on accrual basis and recorded net of Goods Return, Sales Tax, Excise Duty and sales incentive.

b. Interest Income on Fixed Deposits Receipt and Rent Income is recognized on accrual basis.

7. Foreign Exchange Transactions:

* Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

* Monetary items denominated in foreign currencies at the year-end and not covered by forward exchange contracts are translated at the year end rates, and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference have been recognized over the life of the contract.

* Any income or expense on account of exchange difference either on settlement or on translation is r recognized in the profit or loss account net of recoverable amount.

8. Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties less the cost of disposal. An impairment loss is charged to the profit and loss in the year in which an asset is identified as impaired.

9. Excise Duty:

The Company has provided for the Excise Duty payable on the finished goods as stated in the Accounting

Standard/Guidance notes issued by the Institute of Chartered Accountant of India.

10. Purchases:

Purchases are accounted at the time of receipt of material.

11. Taxes On Income:

(i) Current Taxation

Taxes are accounted for in accordance with Accounting Standard - 22 "Accounting for taxes on income" Current tax are determined as the amount of tax payable in respect of taxable income for the year. A provision is made for income tax annually based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. .

(ii) Deferred Taxation

Deferred tax assets and liabilities are recognized, subject to prudence, on timing differences, being the difference between taxable incomes and accounting income, that originates in one period and is capable of reversal in one or more subsequent periods and quantified using the tax rates and laws enacted or substantively enacted by the reporting date. Deferred tax assets are recognized only if there is reasonable or virtual certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

12. Employees Benefit:

A) Provident Fund and ESIC Contribution:

Provident fund and ESIC is a defined contribution scheme and the contribution as required by the statue is not applicable to the company. Hence the same is not debited to the profit & loss account.

B) Gratuity:

Gratuity for the eligible employees is considered as defined benefits obligation and provided for on the basis of calculation as per Payment of Gratuity Act, 1972; however actuarial valuation is not done for the same.

13. Provisions. Contingent Liabilities and contingent assets:

Provision involving substantial degree of estimation in measurement is 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 not disclosed in the financial statements.

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Mar 31, 2014

1. Basis of Preparation of financial Statements:

a. The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistendy by the Company.

b. The Company generally follows mercantile system of accounting and recognizes significant items of Income and Expenditure on accrual basis.

2. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires that the management of the company makes estimates and assumptions that affect the reported amounts of income and expenses of the year, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts / advances, future obligations in respect of retirement benefit plans etc. Actual results could differ from these estimates.

3. Fixed Assets:

Tangible Assets are stated at Cost less accumulated depreciation and net of impairment, if any. The Cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working conditions for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price. All direct cost attributable to acquisition / Installation of Assets are capitalized. Borrowing Cost if any during the construction period shall be added to the cost of eligible tangible assets.

4. Depredation:

The Company is providing depreciation on Fixed Assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

Depreciation on addition is charged proportionally from the date of acquisition / installation of Assets.

5. Inventories:

Inventories is mentioned and valued on FIFO basis as follows:

a) Finished Goods :- at cost or Net realizable value whichever is lower, after Providing for the value of excise duty payable.

b) Raw Material :¦ at cost

c) Stock In Transit :-at cost

d) Sores & Spares : - at cost.

e) Ash & Dust :- at Realizable Value

6. Revenue Recognition:

a. Sales are recognized on accrual basis and recorded net of Goods Return, Sales Tax, Excise Duty and sales incentive.

b. Interest Income on Fixed Deposits Receipt and Rent Income is recognized on accrual basis.

7. Foreign Exchange Transactions;

- Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

- Monetary items denominated in foreign currencies at the year-end and not covered by forward exchange contracts are translated at the year end rates, and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference have been recognized over the life of the contract

- Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit or loss account net of recoverable amount

8. Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length ''transaction between knowledgeable, willing parties less the cost of disposal. An impairment loss is charged to the profit and loss in the year in which an asset is identified as impaired.

9. Excise Duty:

The Company has provided for the Excise Duty payable on the finished goods as stated in the Accounting Standard/Guidance notes issued by the Institute of Chartered Accountant of India.

10. Purchases:

Purchases are accounted at the time of receipt of material.

11. Taxes On Income:

(i) Current Taxation

Taxes are accounted for in accordance with Accounting Standard - 22 "Accounting for taxes on income" Current tax are determined as the amount of tax payable in respect of taxable income for the year. A provision is made for income tax annually based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

(ii) Deferred Taxation

Deferred tax assets and liabilities are recognized, subject to prudence, on timing differences, being the difference between taxable incomes and accounting income, that originates in one period and is capable of reversal in one or more subsequent periods and quantified using the tax rates and laws enacted or substantively enacted by the reporting date. Deferred tax assets are recognized only if there is reasonable or virtual certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

12. Employees Benefit:

A) Provident Fund and ESIC Contribution:

Provident fund and ESIC is a defined contribution scheme and the contribution as required by the statue is not applicable to the company. Hence the same is not debited to the profit & loss account.

B) Gratuity:

Gratuity for the eligible employees is considered as defined benefits obligation and provided for on the basis of calculation as per Payment of Gratuity Act, 1972; however actuarial valuation is not done for the same.

13. Provisions. Contingent Liabilities and contingent assets:

Provision involving substantial degree of estimation in measurement is 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 not disclosed in the financial statements.

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Mar 31, 2013

1. Basis of Preparation of financial Statements:

a. The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistentiy by the Company.

b. The Company generally follows mercantile system of accounting and recognizes significant items of Income and Expenditure on accrual basis.

1 Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires that the management of the company makes estimates and assumptions that affect the reported amounts of income and expenses of the year, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts / advances, future obligations in respect of retirement benefit plans etc. Actual results could differ from these estimates.

3. Fixed Assets:

Tangible Assets are stated at Cost less accumulated depreciation and net of impairment, if any. The Cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working conditions for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price. All direct cost attributable to acquisition / Installation of Assets are capitalized. Borrowing Cost if any during the construction period shall be added to the cost of eligible tangible assets.

4. Depreciation:

The Company is providing depreciation on Fixed Assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

Depreciation on addition is charged proportionally from the date of acquisition / installation of Assets.

5. Inventories;

Inventories is mentioned and valued on FIFO basis as follows:

a) Finished Goods :- at cost or Net realizable value whichever is lower, after Providing for the value of excise duty payable.

b) Raw Material :- at cost

c) Stock In Transit :-at cost. dl Sores & Spares :-at cost

ej Ash & Dust :- at Realizable Value

6. Revenue Recognition:

a. Sales are recognized on accrual basis and recorded net of Goods Return, Sales Tax, Excise Duty and sales incentive.

b. Interest Income on Fixed Deposits Receipt and Rent Income is recognized on accrual basis.

7. Foreign Exchange Transactions:

- Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

- Monetary items denominated in foreign currencies at the year-end and not covered by forward exchange contracts are translated at the year end rates, and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference have been recognized over the life of the contract.

- Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit or loss account net of recoverable amount.

8. Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties less the cost of disposal. An impairment loss is charged to the profit and loss in the year in which an asset is identified as impaired.

9. Excise Duty:

The Company has provided for the Excise Duty payable on the finished goods as stated in the Accounting Standard/Guidance notes issued by the Institute of Chartered Accountant of India.

10. Purchases:

Purchases are accounted at the time of receipt of material.

11. Taxes On Income:

(i) Current Taxation

Taxes are accounted for in accordance with Accounting Standard - 22 "Accounting for taxes on income" Current tax are determined as the amount of tax payable in respect of taxable income for the year. A provision is made for income tax annually based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

(ii) Deferred Taxation

Deferred tax assets and liabilities are recognized, subject to prudence, on timing differences, being the difference between taxable incomes and accounting income, that originates in one period and is capable of reversal in one or more subsequent periods and quantified using the tax rates and laws enacted or substantively enacted by the reporting date. Deferred tax assets are recognized only if there is reasonable or virtual certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

12. Employees Benefit:

A) Provident Fund and ES1C Contribution:

Provident fund and ESIC is a defined contribution scheme and the contribution as required by the statue is not applicable to the company. Hence the same is not debited to the profit & loss account.

B) Gratuity:

Gratuity for the eligible employees is considered as defined benefits obligation and provided for on the basis of calculation as per Payment of Gratuity Act, 1972; however actuarial valuation is not done for the same.

13. Provisions. Contingent Liabilities and contingent assets:

Provision involving substantial degree of estimation in measurement is 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 not disclosed in the financial statements.

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Mar 31, 2010

1. Basis of Preparation of financial Statements:

a. The Financial Statements arc prepared under the historical tost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

b. The Company generally follows mercantile system of accounting and recognizes significant items of Income and Expenditure on accrual basis.

2. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires that the management of the company makes estimates and assumptions that affect the reported amounts of income and expenses of the year, the reported balances of assets and liabilities and the disclosures relating lo contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts / advances, future obligations in respect of retirement benefit plans etc. Actual results could differ from these estimates.

3. Fixed Assets:

Fixed Assets are stated at cost, net of Modvat and include amount added on revaluation less accumulated depreciation. The expenditure during construction period, including the cost of financing till ihc Assets are put to use and the net of income are allocated to the cost of Building and Plant and Machinery.

4. Depreciation:

The Company is providing depreciation on Fixed Assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

Depreciation on addition is charged proportionally from the date of acquisition / installation of Assets.

5. Inventory:

Inventory is mentioned and valued on FIIO Basis as follows.

a) Finished Goods:- at cost or market price whichever is lower, after providing for the value of Excise Duty payable.

b) Raw Material ;- at cost.

c) Stock In Transit:- at cost.

d) Stores & Spares,- at cost.

e) Ash & Dust > at net realisable value.

6- Sales:

Sales are recognized on Accrual basis and recorded net of Excise duty, Sales Tax & Sales Incentives.

7. Foreign Exchange Transactions:

- Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing al the time of the transaction.

- Monetary items denominated in foreign currencies at the year-end and not covered by forward exchange contracts are translated at the year end rates, and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference have been recognized over the life of the contract.

- Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit or loss account net of recoverable amount.

8. Impairment of Assets:

An asset is treated as unpaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arms length transaction between knowledgeable, willing parties less the cost of disposal. An impairment loss is charged to the profit and loss in the year in which an asset is identified as impaired.

9. Excise Duty:

The Company has provided for the Excise Duty payable on the finished goods as stated in the Accounting Standard 2/Guidance Notes issued by the Institute of Chartered Accountant of India.

10. Purchases:

Purchases are accounted at the time of receipt of material.

11. Employee Benefit:

A) Provident Fund and ESIC Contribution:

Provident fund and ESIC is a defined contribution scheme and the contribution as required by the statue is not applicable to the company. Hence the same is not debited to the profit & loss account.

B} Gratuity:

Gratuity for the eligible employees is considered as defined benefits obligation and provided for on the basis of calculation as per Payment of Gratuity Act, 1972 and considering the size of the organization actuarial valuation is not done for the same.

12. Taxes On Income:

(i) Current Taxation

Taxes are accounted for in accordance with Accounting Standard - 22 "Accounting for taxes on income" Current tax are determined as the amount of tax payable in respect of taxable income for the year. A provision is made for income tax annually based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

(ii) Deferred Taxation

Deferred tax assets and liabilities are recognized, subject to prudence, on timing differences, being the difference between taxable incomes and accounting income, that originates in one period and is capable of reversal in one or more subsequent periods and quantified using the tax rates and laws enacted or substantively enacted by the reporting date. Deferred tax assets are recognized only if there is reasonable or virtual certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

13. Provisions Contingent Liabilities and contingent assets:

Provision involving substantial degree of estimation in measurement is 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 ace disclosed in the notes. Contingent assets are neither* recognized not disclosed in the financial statements.