Mar 31, 2015
2.2. Basis of Accounting and Preparation of financial Statements
The financial statements of the Company have been prepared in accordence with the generally, Accepted Accounting principlesmopies in India I Indian GAAP) to comply wrth the Accounting, Standards notified under Section 133 of the An. read with Rule 7 or the Companies accounts) "cues 2014 The financial statements have been prepared an accrual leasts under the historical colt convention The accounting policies adopted in the preparation of the financial statements are consistent, with three followed in the previous year for adjustments , required to complite financial account, in accordance with the. revised shcedule VI previous year except for adjustments
2.3. Use of Estimates
The preparation at tha financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amount! of assets and Uahdmrt inculding contingent liabilities) and tha reported income and exoenes During the year the Management believes that the estimate* used in preparation of the financial statements tem.no we prudent and reasonable future results counld differ due to those estlmeies and the differences between the actual result, and the estimates, are meowed in periods in which the multi are known / mataruhx
At certified by tha management,furnished goods are valued at sale price , raw materials limited Malar lets trading Goods and Wrap are vetued at Cost at MRV which ever is lower (FIFO Method)
2.5. Depreciation and amortisantion
Depreciation hat been prodided on the written shown value method as pet the rates preacbed in Schedule of the Companies Act 2013.
2.6. Revenue Receginition
Revenue is recongiesed on accrued beus Revenue from trfe of (goods is reconited on transfer of all significant rosk and rewards of ownership to the buyer method CST paid on the purchase of goods included in the cost of purchases sales are stated gross of excise outy as well at net of Excise durty being the amount included in the amount of gross turnover interest incomes is recongiesed on accural basis. Revenues is reconglited only when mesured and it is resonables ti expect integral collection all expense and income to the extent considered payable and receivable respectively unless stated otherwise are accounted for on mercentle basis.
2.7. Tanaittdeftaed assets
Fixed assets, are canted at cost less accumatlted deprication and impairment sense, if any , sbsequanteled expenditure relating to fixed is capitalised only if such expenditures result in an increase in the future benefit,from such assets beyond Its previously assessed it undent performance
2.8. Employee benefit.
The Company contribution to exployees state insurance fund and privodent fund is considered a defined contribution plan and is has not made wry prowiion for gratuity,bonus leave encashment and leave t-auel allowance etc dump the yew and thaw will be acrounred for on actuarial basis
2.9. foreign Currency Transactions and Translations
All transaction In foreign currency, are recorded at the rates of eechnge prevailing on the da3es when the relevant trwnacbons tale place
Investment include Long Term shortem term joniy and ate stated at coat
2.11.Earning Par Share
Basic earnings per share is computed by divideing the profit/ (loss) after tax (Induding the post tax effect of extraordinary items,if any) by the number of equity shares outstanding
2.12. Impairment of assets
The carriying value of assets/cash (generatmg units at each Balance Sheet date we renewed tor Impairmant. if any indicate of Impairmant exist . the recoverable amount of such assets its estimated and the net selling price and their use
2.13. Provision and Contingencles
A provision is recognised when the comply hat * present obligation at a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefit! are not discounted to their present value and we determined based on the best estimate required to settle the obligation at the Balance Sheet data Those are renewed at each Balance sheet date and adjusted to reflect the current ben estimate, The company had giee a corporate guantee amounting Rs. 8.25 Crate in favour of Bans ofIndia on behalf of 9on Ion Steels Pvt ltd
2.14. Taxer an income
Current tea Is the amount of tea payable on the taxable income for the year at determined in accordance with the provisions of the Income Tea Act. 1961
Mar 31, 2014
1.1 Basis of preparation of financial statements
(a) Basis of Accounting:
The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956.
(b) Use of Estimates:
The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Differences between actual results and estimates are recognized in the period in which the results are known/ materialized.
As certified by the management, Finished Goods are valued at Sales Price, Raw Materials and Traded Goods are valued at cost, WIP is valued at cost (including Cost upto the stage of Completion). Scrap is valued at net realizable value.
1.3 Depreciation and Amortization
Depreciation on fixed assets is provided to the extent of depreciable amount on written down value method (WDV) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 over their useful life
1.4 Revenue Recognition
Revenues/Incomes are generally accounted on accrual, as they are earned. Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer. VAT is accounted on exclusive method. CST and VAT Payable are not included in the sales price. However, CST paid on the purchase of goods is included in the cost of purchases. Sales are stated gross of Excise Duty as well as net of Excise Duty, Excise Duty being the amount included in the amount of gross turnover.Interest income is recognized on accrual basis.
1.5 Fixed Assets
Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.
1.6 Foreign currency transactions and translations
All transactions in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.
Investments include Long-Term Investments only and are stated at cost.
1.8 Employees Benefit
The Company''s contribution to Employees State Insurance Fund and Provident Fund is considered as defined contribution plan and is charged as an expense as it fall due based on the amount of contribution required to be made. No provision of Gratuity, Bonus, Leave Encashment, Leave Travel Allowance etc. has been made in the accounts and these will be accounted for on Actuarial Basis.
1.9 Borrowing Costs
Borrowing costs include interest and amortization of ancillary costs. Costs in connection with th e borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalization of such asset is added to the cost of the assets. Capitalization of borrowing costs is suspended and charged to the Stat ement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.
1.10 Earnings per share
The Basic and Diluted Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.
1.11 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.
Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized unless there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.
1.12 Impairment of Assets
The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.
1.13 Provisions and contingencies
A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities, if any are disclosed in the Notes.