Accounting Policies of Raasi Refractories Ltd. Company

Mar 31, 2024

B. Significant Accounting Policies:

1. Basis of preparation of financial Statements:

The financial statements have been prepared in accordance with the Indian Accounting
Standards ("Ind AS") notified under the companies (Indian Accounting Standards) Rules, 2015
and Companies (Indian Accounting Standards) Amendments Rules, 2016and the relevant
provisions of the Companies Act, 2013. The financial statements have been prepared on an
accrual basis and under the historical cost convention. The accounting policies adopted in the
preparation of financial statements are consistent with those of previous year. 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 III to the Companies Act, 2013. Based on the
nature of products and the time between the acquisition of assets for processing and their
realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current - non-current classification of assets and liabilities.

2. Use of Estimates:

The preparation of financial statements requires the management to make estimates and
assumptions considered in the reported amounts of assets and liabilities (including contingent
liabilities) as on the date of the financial statements and the reported income and expenses
during the reporting period. The estimates and assumptions used in the financial statements are
based upon the Management''s evaluation of the relevant facts and circumstances as on the
date of financial statements. Management believes that the estimates used in the preparation of
the financial statements are prudent and reasonable. Future results may vary from these
estimates.

3. Property, Plant & Equipment:

All items of property, plant and equipment are stated at cost less accumulated depreciation and
accumulated impairment losses, if any. Cost of acquisition is inclusive of purchase price, levies
and any directly attributable cost of bringing the assets to its working condition for the intended
use. Subsequent costs are included in the asset''s carrying amount or recognised as separate
asset, as appropriate, only when it is probable that the future economic benefits associated with
the item will flow to the company and cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate asset is derecognized when replaced.
All other repairs and maintenance are charged to Statement of Profit and Loss during the
reporting period in which they are incurred.

Depreciation on Fixed Assets is provided on straight line method at the rates based on the useful
life of the asset in the manner prescribed in Schedule 11 to the Companies Act, 2013.

Capital work-in-progress comprises cost of fixed assets that are not yet ready for their intended
use at the year end.

4. Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date to ascertain
impairment based on internal / external factors. An impairment loss is recognized when the
carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher
of the net selling price of the assets and their value in use.

5. Leased Assets:

Operating Leases: Rentals are recognized as an expense with reference to lease terms and
other considerations.

6. Borrowing Costs:

In accordance with the requirements of Indian Accounting Standard 23 (Ind AS 23), "Borrowing
Costs", borrowing costs attributable to acquisition/construction of a qualifying asset (i.e. an
asset requiring substantial period of time to get ready for intended use or sale) are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use
or sale. Pre-operative expenses incurred during construction period are capitalised, where
appropriate. Interest expenditure has been accounted using effective interest rate method.

7. Financial Assets:

I. Initial recognition and measurement:

All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Purchase and sale of financial assets are recognised on the
trade date, i.e., the date that the Company commits to purchase or sell the asset.

II. Subsequent measurement:

a) Financial assets carried at amortised cost (AC):

A financial asset is measured at amortised cost if it is held within a business model whose
objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI):

A financial asset is measured at FVTOCI if it is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.

C) Financial assets at fair value through profit or loss (FVTPL):

A financial asset which is not classified in any of the above categories are measured
at FVTPL.

For trade receivables, Company applies ''simplified approach'' for recognition of impairment
loss allowance on the trade receivable balances. The application of simplified approach
require the Company to recognizes impairment loss allowance based on lifetime ECLs at
each reporting date, right from its initial recognition. The Company uses historical default
rates to determine impairment loss on the portfolio of trade receivables. At every reporting
date these historical default rates are reviewed and changes in the forward looking
estimates are analysed.

8. Financial Liabilities:

I. Initial recognition and measurement:

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable
transaction costs. Fees of recurring nature are directly recognized in the Statement of Profit and
Loss as finance cost.

II. Subsequent measurement :

Financial liabilities are carried at amortized cost using the effective interest method. For trade
and other payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.

9. Derecognition of financial instruments:

A financial asset (or a part of the financial asset) is derecognized from the Company''s balance
sheet when the contractual rights to the cash flows from the financial asset expire or it transfers
the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial
liability (or a part of the financial liability) is derecognized from the Company''s balance sheet
when the obligation under the liability is discharged or cancelled or expires.

10. Cash and cash equivalents:

Cash and cash equivalents consist of cash at banks and on hand, demand deposits and other
short term deposits that are readily convertible into known amounts of cash, are subject to
insignificant risk of changes in value and have a maturity of three months or less.

11. Inventories:

Inventories consist of raw materials, stores and spares, work-in-progress and finished goods
are measured at the lower of cost and net realisable value after providing for obsolescence. The
cost of all categories of inventories is based on the weighted average method. Cost includes
expenditures incurred in acquiring the inventories, production or conversion costs and other
costs incurred in bringing them to their existing location and condition. In the case of finished
goods and work-in-progress, cost includes an appropriate share of overheads based on normal
operating capacity. Net realisable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion and selling expenses.

12. Impairment of non-financial assets:

The carrying amounts of the Company''s non-financial assets, other than inventories and
deferred tax assets are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, then the asset''s recoverable amount is
estimated to determine the extent of impairment if any.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of
its value in use and its fair value less costs to sell. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset or the
cash-generating unit.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of
its value in use and its fair value less costs to sell. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset or the
cash-generating unit.

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Mar 31, 2015

1.1 Basis of Accounting and preparation of financial statement

The financial statements are prepared in accordance with Generally accepted accounting Principles(GAAP) under the Historical cost convention on the accrual basis and on a going concern basis. GAAP comprises mandatory accounting standards as prescribed by the Companies(Accounting Standards) Rules, 2014, the provision of Companies Act, 2013 and Guidelines issued by the Securities and Exchange Board of India(SEBI).

1.2 Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that effect the amount reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

1.3 Inventories

Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value. Cost includes all charges in bringing the goods to the point of sale, Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

1.4 Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any Cost directly attributable to bringing the assets to their present location and working conditions for intended use.

1.5 Depreciation/Amortization

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule II to the Companies Act, 1956 .

1.6 Investments

Investments are adjusted against the dues to the parties

1.7 Revenue Recognition

Revenues/Incomes and cost/expenditure are generally accounted on accrual basis as they are earned or incurred except in case of significant uncertainties. Income from sale of goods is recognised at the point of dispatch from the Factory go down. Sale value includes Excise duty and Frieght wherever applicable.

1.8 Taxes on income

Deferred Tax is not considered as in Earlier years due to insignificant effect on the Profit/Loss for the Year.

1.9 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events 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 statement.

1.10 Employee Benefits

(a) Short term employee benefit obligations are estimated and provided for.

(b) Post employment benefits and other long term employee benefits:

Defined Contribution plans :

Company's contribution to provident fund and other funds are determined under the relevant schemes and/or statute and charged to revenue.

Company's liability towards gratuity is determined at each balance sheet date and provided for.

1.11 Borrowing Cost

Borrowing costs relating to acquisition or construction of fixed assets which takes substantial period of time to get ready for its intended use are included in the cost of fixed assets to the extent they relate to the period till such assets are ready to be put to use. Other Borrowing costs are recognized as an expense in the year in which they are incurred.

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Mar 31, 2014

1.1 Basis ofAccounting and preparation of financial statement

I) The financial statements are prepared in accordance with Generally accepted accounting Principles(GAAP) under the Historical cost convention on the accrual basis and on a going concern basis. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provision of CompaniesAct, 1956 and Guidelines issued by the Securities and Exchange Board of India(SEBI).

1.2 Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that effect the amount reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

1.3 Inventories

Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value. Cost includes all charges in bringing the goods to the point of sale, Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

1.4 FixedAssets

All fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any Cost directly attributable to bringing the assets to their present location and working conditions for intended use.

1.5 Depreciation/Amortization

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the CompaniesAct, 1956.

1.6 Investments

Investments are either classified as current or non-current based on the Managements intention. Current investments are carried at the lower of cost and fair value. Non-current investments are carried at cost and provision recorded to recognize any decline, other than temporary, in the carrying value of each investment.

1.7 Revenue Recognition

Revenues/Incomes and cost/expenditure are generally accounted on accrual basis as they are earned or incurred except in case of significant uncertainties. Income from sale of goods is recognised at the point of dispatch from the Factory godown. Sale value includes Excise duty and Frieght wherever applicable.

1.8 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income TaxAct, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liablities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets.

1.9 Provision, Contingent Liabilities and ContingentAssets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognizes but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement.

1.10 Impairment ofFixedAssets

At the end of each period, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indication that an impairment loss may have occurred in accordance withAccounting Standard (AS-28) "Impairment ofAssets" issued by the institute of Chartered Accounts of India. An impairment loss is charged to the Profit & loss Account in the period in which, an asset is identified as impaired, when the carrying value of the assets exceeds its recoverable value. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.11 Foreign Currency Transaction

Year-end balance of foreign currency transaction is translated at the year-end rates and the corresponding effect is given in the respective accounts. Transaction completed during the year are adjusted on actual basis. In respect of transaction covered by forward exchange contracts, the difference between the forward rate and exchange rate at the inception of contract is recognised as income or expenses over the life of the contract.

1.12 Employee Benefits

(a) Short term employee benefit obligations are estimated and provided for.

(b) Post employment benefits and other long term employee benefits:

Defined Contribution plans:

Company''s contribution to provident fund and other funds are determined under the relevant schemes and/or statute and charged to revenue.

Defined benefit plans:

Company''s liability towards gratuity is determined at each balance sheet date and provided for.

1.13 Borrowing Cost

Borrowing costs relating to acquisition or construction of fixed assets which takes substantial period of time to get ready for its intended use are included in the cost of fixed assets to the extent they relate to the period till such assets are ready to be put to use. Other Borrowing costs are recognized as an expense in the year in which they are incurred.

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Mar 31, 2013

1.1 Basis of Accounting and preparation of financial statement

I) The financial statements are prepared in accordance with Generally accepted accounting Principles(GAAP) under the Historical cost convention on the accrual basis and on a going concern basis. GAAP comprises mandatory accounting standards as prescribed by the Companies(Accounting Standards) Rules, 2006, the provision of Companies Act, 1956 and Guidelines issued by the Securities and Exchange Board of India(SEBI).

1.2 Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that effect the amount reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

1.3 Inventories

Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value. Cost includes all charges in bringing the goods to the point of sale, Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

1.4 Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any Cost directly attributable to bringing the assets to their present location and working conditions for intended use.

1.5 Depreciation/Amortization

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 .

1.6 Investments

Investments are either classified as current or long term based on the Managements intention. Current investments are carried at the lower of cost and fair value. Long term investments are carried at cost and provision recorded to recognize any decline, other than temporary, in the carrying value of each investment.

1.7 Revenue Recognition

Revenues/Incomes and cost/expenditure are generally accounted on accrual basis as they are earned or incurred except in case of significant uncertainties. Income from sale of goods is recognised at the point of dispatch from the Factory godown. Sale value includes Excise duty and Frieght wherever applicable.

1.8 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liablities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income.

1.9 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognizes but are disclosed in the notes. contingent Assets are neither recognized nor disclosed in the financial statement.

1.10Impairment of Fixed Assets

At the end of each period, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indication that an impairment loss may have occurred in accordance with Accounting Standard (AS-28) "Impairment of Assets" issued by the institute of Chartered Accounts of India. An impairment loss is charged to the Profit & loss Account in the period in which, an asset is identified as impaired, when the carrying value of the assets exceeds its recoverable value. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.11 Foreign Currency Transaction

Year-end balance of foreign currency transaction is translated at the year-end rates and the corresponding effect is given in the respective accounts. Transaction completed during the year are adjusted on actual basis. In respect of transaction covered by forward exchange contracts, the difference between the forward rate and exchange rate at the inception of contract is recognised as income or expenses over the life of the contract.

1.12 Employee Benefits

Short term employee benefit obligations are estimated and provided for.

Post employment benefits and other long term employee benefits:

Defined Contribution plans :

Company''s contribution to provident fund and other funds are determined under the relevant schemes and/or statute and charged to revenue.

Defined benefit plans :

Company''s liability towards gratuity is determined at each balance sheet date and provided for.

1.13 Borrowing Cost

Borrowing costs relating to acquisition or construction of fixed assets which takes substantial period of time to get ready for its intended use are included in the cost of fixed assets to the extent they relate to the period till such assets are ready to be put to use. Other Borrowing costs are recognized as an expense in the year in which they are incurred.

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Mar 31, 2012

1.1 Basis of Accounting and preparation of financial statement

I) The financial statements are prepared in accordance with Generally accepted accounting Principles(GAAP) under the Historical cost convention on the accrual basis and on a going concern basis. GAAP comprises mandatory accounting standards as prescribed by the Companies(Accounting Standards) Rules, 2006, the provision of Companies Act, 1956 and Guidelines issued by the Securities and Exchange Board of India(SEBI).

II) The Financial statements for the year ended March 31,2011 had been prepared as per the applicable, pre-revised schedule VI to the Companies Act, 1956 . Consequent to the notification of revised Schedule VI under the companies Act 1956, the financial statement for the year ended March 31, 2012 are prepared as per the revised schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year''s classification. The adoption of revised schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

1.2 Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that effect the amount reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

1.3 Inventories

Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value. Cost includes all charges in bringing the goods to the point of sale, Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

1.4 Depreciation/Amortization

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

1.5 Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any Cost directly attributable to bringing the assets to their present location and working conditions for intended use.

1.6 Investments

Investments are either classified as current or long term based on the Managements intention. Current investments are carried at the lower of cost and fair value.. Long term investments are carried at cost and provision recorded to recognize any decline, other than temporary, in the carrying value of each investment.

1.7 Revenue Recognition

Revenues/Incomes and cost/expenditure are generally accounted on accrual basis as they are earned or incurred except in case of significant uncertainties.

1.8 Taxes on income

a) Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

b) Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

c) Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods, subject to the consideration of prudence.

1.9 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognizes but are disclosed in the notes, contingent Assets are neither recognized nor disclosed in the financial statement.

1.10 Impairment of Fixed Assets

At the end of each period, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indication that an impairment loss may have occurred in accordance with Accounting Standard (AS-28) "Impairment of Assets" issued by the institute of Chartered Accounts of India. An impairment loss is charged to the Profit & loss Account in the period in which, an asset is identified as impaired, when the carrying value of the assets exceeds its recoverable value. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.11 Foreign Currency Transaction

Year-end balance of foreign currency transaction is translated at the year-end rates and the corresponding effect is given in the respective accounts. Transaction completed during the year are adjusted on actual basis. In respect of transaction covered by forward exchange contracts, the difference between the forward rate and exchange rate at the inception of contract is recognised as income or expenses over the life of the contract.

1.12 Employee Benefits

(a) Shortterm employee benefit obligations are estimated and provided for.

(b) Post employment benefits and other long term employee benefits:

Defined Contribution plans:

Company''s contribution to provident fund and other funds are determined under the relevant schemes and/or statute and charged to revenue.

Defined benefit plans:

Company''s liability towards gratuity is determined at each balance sheet date and provided for.

1.13 Borrowing Cost

Borrowing costs relating to acquisition or construction of fixed assets which takes substantial period of time to get ready for its intended use are included in the cost of fixed assets to the extent they relate to the period till such assets are ready to be put to use. Other Borrowing costs are recognized as an expense in the year in which they are incurred.

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Mar 31, 2010

Basis of preparation of accounts:

The financial statements have been prepared on the basis of going concern, and the historic cost convention, to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the companies Act, 1956

Fixed Assets:

Fixed Assets are shown at cost or valuation less depreciation. Cost comprises of the purchase price and other attributable expenses including cost of barrowings till the date of Capitalization in the case of assets involving material investment and substantial lead time.

Depreciation:

Depreciation is provided for on straight line method at the rates specified in Schedule XIV to companies Act, 1956, as amended from time to time.

Inventories:

Finished goods are valued at cost or market value whichever is lower inclusive of excise duty. Semi- finished goods are valued at cost or net realizable value whichever is lower. Stores and spares, raw material and coal are valued at weighted average cost which includes cost of transportation, insurance, unloading and other incidental expenses. Material in transit is valued at cost plus insurance and other incidental expenses.

Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Sale of goods:

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer.

Interest:

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend:

Revenue is recognized when the shareholders right to receive payment is established by the Balance Sheet date.

Retirement Benefits:

Retirement benefits to employees are provided for by means of Provident Fund, Gratuity and Leave Encashment. Liability towards Gratuity and Leave Encashment are determined based on the management valuation as on the Balance Sheet date.

Taxes on Income:

Provision for current tax is made for the amount of tax payable in respect of taxable income for the year under Income Tax Act, 1961. Deferred tax is recognized on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in subsequent periods, subject to consideration of prudence.