1. Statement of Significant accounting policies
General Information
Vaishno Cement Company Limited (“the company”) is an entity incorporated in India under the
provisions of Companies Act, 1956. The registered office of the Company is located at 14B, Ram
Chandra Moitra Lane, Kolkata- 700005.
1. Significant Accounting Policies
This note provides a list of the significant accounting policies adopted in the preparation of these
separate financial statements of the Company. These policies have been consistently applied to all
the periods presented, unless otherwise stated.
(a) BASIS OF PREPARATION AND PRESENTATION
i) Compliance with Ind AS
The separate financial statements have been prepared in accordance with the Companies
(Indian Accounting Standard) Rules, 2015 under the historical cost convention as a going
concern on an accrual basis expect for certain financial instruments which are measured at
fair value. The financial statements up to year ended 31 March 2017 were prepared earlier in
accordance with the accounting standards notified under the Companies (Accounting
Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.
(ii) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the
following: - equity investments in entities other than subsidiary, joint ventures and associate
which are measured at fair value; - Certain financial assets and liabilities that are measured
at fair value; - defined benefit plans - plan assets measured at fair value.
(iii) Use of estimates
In preparing the financial statements in conformity with generally accepted accounting
principles, management is required to make judgements, estimates and assumptions that
may affect the reported amounts of assets and liabilities and the disclosure of contingent
liabilities as at the date of financial statements and the amounts of revenue and expenses
during the reported period. The estimates and assumptions used in the accompanying
financial statements are based upon management's evaluation of facts and circumstances as
at the date of the financial statement. Actual results could differ from those estimates.
Estimates and underlying assumption are reviewed on an ongoing basis. Any revision to
such estimates is recognized in the period the same is determined.
(b) PROPERTY, PLANT AND EQUIPMENT
During the year under review the Company has no fixed assets.
(c) INTANGIBLE ASSETS
During the year under review the Company has no Intangible Assets.
(d) FINANCIAL INSTRUMENTS
i) Financial Assets
The Company derecognises a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers the right to receive the contractual cash flows in
a transaction in which substantially all of the risks and rewards of ownership of the financial
assets are transferred or in which the Company neither transfers nor retains substantially all
of the risks and rewards of ownership and does not retain control of the financial asset. If the
Company enters into transactions whereby it transfers assets recognised on its balance sheet,
but retains either all or substantially all of the risks and rewards of the transferred assets, the
transferred assets are not derecognised.
ii) Financial Liabilities
The Company derecognises a financial liability when its contractual obligations are
discharged or cancelled, or expire. The Company also derecognises a financial liability when
its terms are modified and the cash flows under the modified terms are substantially
different.
(e) CASH & CASH EQUIVALENT
Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in
hand, bank balances, demand deposits with banks where the original maturity is three months or
less and other short term highly liquid investments. To be classified as cash and cash equivalents,
the financial asset must be readily convertible into cash; - have an insignificant risk of changes in
value; and - have a maturity period of three months or less at acquisition.
(f) REVENUE RECOGNITION
Revenue is recognized on accrual basis
(g) EMPLOYEE BENEFITS
Liabilities for wages and salaries that are expected to be settled wholly within 12 months after
the end of the period in which the employees render the related service are recognised in respect
of employees’ services up to the end of the reporting period and are measured at the amounts
expected to be paid when the liabilities are settled.
(h) LEASES
During the year under review the Company had not entered into any leasing agreements.
(i) FOREIGN CURRENCY TRANSACTION
During the year under review no foreign currency transactions were entered into by the
Company.
(j) TAXES ON INCOME
The tax expense for the period comprises of current and deferred income tax.
i) Current tax
Current tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the Income Tax authorities, based on tax rates and laws
that are enacted/prevailing at the Balance Sheet date.
ii) Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts
of assets and liabilities in the financial statements and the corresponding tax bases
used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to
apply in the period in which liability is settled or the asset is realized, based on tax
rates and tax laws that have been enacted and/or substantively enacted at the end of
reporting period. The carrying amount of deferred tax liabilities and assets are
reviewed at the end of each reporting period.
(k) DIVIDENDS
During the year under review the company has not declared any dividend.
(l) EARNINGS PER SHARE
Basic and Diluted Earnings per share is calculated by dividing the net profit attributable to equity
shareholders by weighted average number of equity shares/dilutive potential equity shares
outstanding as at end of the reporting period as the case may be.
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