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Accounting Policies of Ashiana Ispat Ltd. Company

Mar 31, 2015

1 Basis of Accounting

Financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and to comply with Accounting Standards referred to in Section 133 of the Companies Act 2013 read with Rule 7 of Company (Accounts) Rules, 2014 to the extent applicable.

2 Use of Estimates

The Preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and reported amount of revenues and expenses during the reporting period.

3 System of Accounting

The Company adopts the accrual basis in the preparation of accounts

4 Fixed Asset

(a) Fixed Asset are stated at cost less accumulated depreciation. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost.

(b) Expenditure on renovation/ modernization relating to existing fixed assets is added to the cost of such assets where it increases its performance / life significantly.

5 Investment

Investment are carried at cost. Profit or loss, if any would be accounted for on actual realization.

6 Inventories Valuation

(a) Raw Material , Stock in- Process and stores and spares and Traded Goods are valued at cost.

(b) Waste and Scrap & Runner / Risers are valued at realizable value.

(c) Finished Goods are valued at cost or market price whichever is less.

The Value of finished goods is included excise duty as applicable on the closing stock.

7 Depreciation

(a) Cost of Lease Hold Land is not amortized since Lease is for a Long Period.

(b) Depreciation on fixed assets upto 31.03.2014, is provided for on the straight-line method in the manner and at the rates prescribed under Schedule XIV of the Companies Act,1956.Effective from 01.04.2014, depreciation is charged on SLM method on the basis of useful life of the fixed assets. The Company has adopted useful life of fixed assets as given in Part 'C' of Schedule II of the Companies Act, 2013 in respect of all fixed assets.

8 Sale / Revenue Recognition

(a) Sales are net of Sales tax and sales returns. Revenue from sales is recognized when risk and reward of ownership are transferred to the customers.

(b) Interest income is recognized on time proportion basis.

(c) Other Revenue Income are recognised as and when accured to the Company.

9 Impairment of Assets

There are no indication of overall impairment in assets hence the need to make an estimation of re-coverable amount does not arise.

10 Employee Retirement Benefit

(i) Company's contribution to Provident Fund and Employee State Insurance are charged to Statement of Profit & Loss.

(ii) Liability on account of gratuity and leave encashment are provided for on the basis of acturial valuation made at the end of each financial year.

11 Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between book profit and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the date of balance sheet. The deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that the same will be realized in future.


Mar 31, 2014

1 Basis of Accounting

The financial statements are prepared under historical cost convention on a going concern basis in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956

2 Use of Estimates

The Preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and reported amount of revenues and expenses during the reporting period.

3 System of Accounting

The Company adopts the accrual basis in the preparation of accounts

4 Fixed Asset

(a) Fixed Asset are stated at cost less accumulated depreciation. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost.

(b) Expenditure on renovation/ modernization relating to existing fixed assets is added to the cost of such assets where it increases its performance / life significantly.

5 Investment

Investment are carried at cost. Profit or loss, if any would be accounted for on actual realization.

6 Inventories Valuation

(a) Raw Material, Stock in- Process and stores and spares and Traded Goods are valued at cost.

(b) Waste and Scrap & Runner/Risers are valued at realizable value.

(c) Finished Goods are valued at cost or market price whichever is less.

The Value of finished goods is included excise duty as applicable on the closing stock.

7 Depreciation

(a) Cost of Lease Hold Land is not amortized since Lease is for a Long Period.

(b) Deprecation on fixed assets is provided on straight line method on prorata & actual shift working basis in accordance with the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

8 Sale / Revenue Recognition

(a) Sales are net of Sales tax and sales returns. Revenue from sales is recognized when risk and reward of ownership are transferred to the customers.

(b) Interest income is recognized on time proportion basis.

(c) Other Revenue Income are recognised as and when accured to the Company.

9 Impairment of Assets

There are no indication of overall impairment in assets hence the need to make an estimation of re-coverable amount does not arise.


Mar 31, 2012

1 Basis of Accounting

The financial statements are prepared under historical cost convention on a going concern basis in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956

2 Use of Estimates

The Preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and reported amount of revenues and expenses during the reporting period.

3 System of Accounting

The Company adopts the accrual basis in the preparation of accounts

4 Fixed Asset

(a) Fixed Asset are stated at cost less accumulated depreciation. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost.

(b) Expenditure on renovation/ modernization relating to existing fixed assets is added to the cost of such assets where it increases its performance / life significantly.

5 Investment

Investment are carried at cost. Profit or loss, if any would be accounted for on actual realization.

6 Inventories Valuation

(a ) Raw Material , Stock in- Process and stores and spares and Traded Goods are valued at cost.

(b ) Waste and Scrap & Runner / Risers are valued at realizable value including the excise duty in value.

(c ) Finished Goods are valued at cost or market price whichever is less including the excise duty in value.

7 Depreciation

(a) Cost of Lease Hold Land is not amortized since Lease is for a Long Period.

(b) Deprecation on fixed assets is provided on straight line method on prorata & actual shift working basis in accordance with the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

8 Sale / Revenue Recognition

(a) Sales are net of Sales tax and sales returns. Revenue from sales is recognized when risk and reward of ownership are transferred to the customers.

(b) Interest income is recognized on time proportion basis.

(c) RIPS Subsidy received is on actual realization basis.

9 Impairment of Assets

There are no indication of overall impairment in assets hence the need to make an estimation of re- coverable amount does not arise.

10 Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961

Provision made for deffered tax is recognized subject to the consideration of prudency, timing difference, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent years.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.


Mar 31, 2011

1 Basis of Accounting

The financial statements are prepared under historical cost convention on a going concern basis in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956

2 Use of Estimates

The Preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and reported amount of revenues and expenses during the reporting period.

3 System of Accounting

The Company adopts the accrual basis in the preparation of accounts

4 Fixed Asset

(a) Fixed Asset are stated at cost less accumulated depreciation. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost.

(b) Expenditure on renovation/ modernization relating to existing fixed assets is added to the cost of such assets where it increases its performance / life significantly.

5 Investment

Investment are carried at cost. Profit or loss, if any would be accounted for on actual realization.

6 Inventories Valuation

(a ) Raw Material, Stock in- Process and stores and spares and Traded Goods are valued at cost. (b ) Waste and Scrap & Runner / Risers are valued at realizable value (c ) Finished Goods are valued at cost or market price whichever is less.

7 Depreciation

(a ) Cost of Lease Hold Land is not amortized since Lease is for a Long Period.

(b) Deprecation on fixed assets is provided on straight line method on prorata & actual shift working basis in accordance with the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

8 Sale / Revenue Recognition

(a ) Sales are net of Sales tax and sales returns. Revenue from sales is recognized when risk and reward of ownership are transferred to the customers. (b ) Interest income is recognized on time proportion basis.

9 Tax on Income

Provision made for deferred tax is recognized subject to the consideration of prudency, timing differences, being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent years.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.


Mar 31, 2010

1 Basis of Accounting

The financial statements are prepared under historical cost convention on a going concern basis in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956

2 Use of Estimates

The Preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and reported amount of revenues and expenses during the reporting period

3 System of Accounting

The Company adopts the accrual basis in the preparation of accounts

4 Fixed Asset

(a) Fixed Asset are stated at cost less accumulated depreciation. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost.

(b) Expenditure on renovation/ modernization relating to existing fixed assets is added to the cost of such assets where it increases its performance / life significantly.

5 Investment

I nvestment are carried at cost. Profit or loss, if any would be accounted for on actual realization.

6 Inventories Valuation

(a) Raw Material, Stock in- Process and stores and spares and Traded Goods are valued at cost.

(b) Waste Scrap & Runner/ Risers are valued at realizable value.

(c) Finished Goods are valued at cost or market price whichever is less.

7 Depreciation

(a) Cost of Lease Hold Land is not amortized since Lease is for a Long Period.

(b) Deprecation on fixed assets is provided on straight line method on prorata & actual shift working basis in accordance with the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

8 Sale / Revenue Recognition

(a) Sales are net of Sales tax and sales returns. Revenue from sales is recognized when risk and reward of ownership are transferred to the customers.

(b) Interest income is recognized on time proportion basis.

(c) Company has not received any Dividend Income during the year.

9 Tax on Income

Provision made for deffered tax is recognized subject to the consideration of prudency, timing differences, being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent years. Deferred tax assets are recognized only ifthere is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date

10. Financial figures are rounded off to nearest rupees.

 
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