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Accounting Policies of Beekay Steel Industries Ltd. Company

Mar 31, 2015

1. ACCOUNTING CONVENTION:

The Financial Statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards (AS) as notified under the relevant provision of the Companies Act, 2013.

The Company has reclassified and regrouped the previous year figures in accordance with the requirements for the current year.

2. USE OF ESTIMATES:

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and laibilities, disclosures of contingent liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/materialised.

3. REVENUE RECOGNITION:

a) All incomes and expenditures having a material bearing on the financial statements are recognised on accrual and prudent basis.

b) Sale of Goods is recognised on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods

c) "Export incentives under the " Duty Entitlement Pass Book Scheme". "Duty Draw back Scheme", etc is accounted in the year of export".

4. PURCHASES:

Purchases are shown net of Cenvat Credit on Purchases of Materials, Stores and other inputs.

5. SALES:

a) Sales are recognised net of returns and trade discount on despatch of goods to customers and are reflected in the accounts of gross realisable value i.e. inclusive of Excise Duty but exclusive of VAT.

b) Materials returned/rejected are recorded in the year of return/rejection.

6. EXCISE DUTY:

a) Excise Duty recovered are included in Sale of goods & merchandise.

b) Excise Duty on Closing Stock of finished products lying at factory premises is provided for and also included in the valuation of Inventories.

7. FIXEDASSETS:

Fixed Assets are stated at cost less accumulated depreciation, and impairment, if any, and includes inward freight, taxes and other incidental expenses incurred to bring the assets to their working condition for intended use but exclusive of Cenvat wherever claimed. Fixed Assets includes internal transfers.

8. DEPRECIATION:

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

a) In respect of Fixed Assets acquired upto 31st March, 1991, depreciation was provided to the extent of depreciable amount on Written Down Value (WDV) Method.

b) In respect of Fixed Assets acquired on or after 1st April,1991, depreciation is provided to the extent of depreciable amount on the Straight Line Method (SLM).

9. CAPITAL WORK-IN-PROGRESS:

Investments made on procurement and fabrication of various Fixed Assets are shown as Capital Work in Progress and are valued at cost. The cost includes all pre-operative expenses relating to construction period for erection of thefactory. Freight, Taxes and other incidental expenses but exclusive of "CENVAT" availed.

10. BORROWINGCOST:

Interest and other borrowing cost attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to revenue.

11. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

a) Provision are recognised when there is a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of obligation. Provision are measured at the best estimate of expenditure required to settle the present obligation at the balance sheet date and are not discounted to its present value.

b) Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by occurrence or non ocurence of one or more uncertain future events not wholly within the control of the company or apresent obligation arises from past events where there is not probable that outflow of resources will be required to settle or a reliable estimate of amount cannot be made.

c) Contingent Assets are neither recognised nor disclosed in the financial statements.

12. INVENTORIES:

a) Materials and Stores are valued at lower of cost exclusive of excise duty or net realizable value.

b) Finished Goods and Scraps are valued at lower of Cost of Production or net realizable value after providing for obsolescence and other losses where considered necessary by the management and are inclusive of Excise Duty.

c) Stores & Spares, loose tools, considered as an item of Current Assets are valued at lower of cost or net realisable value.

13. INVESTMENTS:

Investments made by the Company are of a Long Term nature and hence such Investment are stated at cost. The diminution in the value of Investments, are considered when the same is to be of permanent nature.

14. EMPLOYEE BENEFITS:

a) Liability for Gratuity is ascertained by the management on actuarial basis as on the year end and provided in accounts accordingly.

b) Contribution to provident fund and superannuation fund are accounted for on accrual basis.

c) Provision for Leave encashment is charged to Profit & Loss Account on the basis of Liability determined on actuarial valuation as on the year end.

d) Liability for bonus is provided for on accrual basis subject to final payments.

15. TAXATION:

Income-tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. The deferred tax assets and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enancted by the Balance Sheet date. Deferred tax assets arising mainly on accoynt of brought forward losses and unabsorbed depriciation under tax laws, are recognised, only if there is a virtual certainity of its realisation, supported by convincing evidence. Minimum Alternate Tax credit (MAT Credit) is recognised as an asset only when and to the extant there is convincing evidence bthat the company will pay normal tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of MAt Credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

16. FOREIGN EXCHANGE FLUCTUATION:

Any Income and expenses on account of exchange difference on settlement is recognised in the profit and loss account. However the recognition is done only on realisation basis.

17. IMPAIRMENT OF ASSETS:

Impairment is ascertained at each balance sheet date in respect of cash generating units. An impairment loss is recognised wherever the carrying amount of an assets exceeds its recoverable value.

18. EARNING PER SHARE:

Earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity share outstanding during the period. Earnings considered in ascertaining the Company's earning per share is the net profit for the period.


Mar 31, 2014

1. ACCOUNTING CONVENTION:

The Financial Statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Generally Accepted Accounting Principles in India and the Accounting Standards (AS) as notified under Companies (Accounting Standard) Rules, 2006.

The Company has reclassified the previous year figures in accordance with the requirements applicable in the current year.

2. REVENUE RECOGNITION:

All incomes and expenditures having a material bearing on the financial statements are recognised on accrual and prudent basis.

3. PURCHASES:

Purchases are shown net of Cenvat Credit on Purchases of Materials, Stores and other inputs.

4. SALES:

a) Sales are recognised net of returns and trade discount on despatch of goods to customers and are reflected in the accounts of gross realisable value i.e. inclusive of Excise Duty but exclusive of VAT.

b) Materials returned / rejected are recorded in the year of return / rejection.

5. EXCISE DITY

a) Excise Duty recovered are included in Sale of goods & merchandise.

b) Excise Duty on Closing Stock of finished products lying at factory premises is provided for and also included in the valuation of Inventories.

6. FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation, and impairment, if any, and includes inward freight, taxes and other incidental expenses incurred to bring the assets to their working condition for intended use but exclusive of Cenvat wherever claimed. Fixed Assets includes internal transfers.

7. DEPRECIATION:

Depreciation is provided at the rate and in the same manner prescribed in Schedule XIV of the Companies Act, 1956.

a) In respect of assets acquired upto 31st March, 1991, on written down value method.

b) In respect of assets acquired on or after 1 st April, 1991, on straight line method.

c) Rolls are fully depreciated on pro-rata basis on time proportion as per rate prescribed in Schedule - of this Act to such class of assets.

8. CAPITAL WORK-IN-PROGRESS

Investments made on procurement and fabrication of various Fixed Assets are shown as Capital Work in Progress and are valued at cost. The cost includes all pre-operative expenses relating to construction period for erection of the factory. Cost includes freight, taxes and other incidental expenses but exclusive of "CENVAT" availed.

9. INVENTORIES:

a) Materials and Stores are valued at lower of cost exclusive of excise duty or net realizable value .

b) Finished Goods and Scraps are valued at lower of Cost of Production or net realizable value after providing for obsolescence and other losses where considered necessary by the management and are inclusive of Excise Duty.

c) Stores & Spares, loose tools, considered as an item of Current Assets are valued at lower of cost or net realisable value.

10. INVESTMENTS:

Investments made by the Company are of a Long Term nature and hence such Investment are stated at cost. The diminution in the value of Investments, are considered when the same is to be of permanent nature.

11. RETIREMENT BENEFITS:

a) Liability for Gratuity is ascertained by the management on actuarial basis as on the year end and provided in accounts accordingly.

b) Contribution to provident fund and superannuation fund are accounted for on accrual basis.

c) Provision for Leave encashment is charged to Profit & Loss Account on the basis of liability determined on actuarial valuation as on the year end.

d) Liability for bonus is provided for on accrual basis subject to final payments.

12. PROVISION FOR INCOME TAX:

Income tax provision comprises of current tax and deferred tax. Current tax provision has been determined after considering deductions available under Income-tax Act, 1961. Deferred tax is recognised for all timing differences subject to the consideration of prudence applying the tax rates that have been substantively enacted by the balance sheet date.

13. IMPAIRMENT OF ASSETS

Impairment is ascertained at each balance sheet date in respect of cash generating units. An impairment loss is recognised wherever the carrying amount of an assets exceeds its recoverable value.

14. FOREIGN EXCHANGE FLUCTUATION

Any Income and expenses on account of exchange difference on settlement is recognised in the profit and loss account. However the recognition is done only on realisation basis.


Mar 31, 2013

1. ACCOUNTING CONVENTION:

The Financial Statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Generally Accepted Accounting Principles in India and the Accounting Standards (AS) as notified under Companies (Accounting Standard) Rules, 2006.

The Company has reclassified the previous year figures in accordance with the requirements applicable in the current year.

2. REVENUE RECOGNITION:

All incomes and expenditures having a material bearing on the financial statements are recognised on accrual and prudent basis.

3. PURCHASES:

Purchases are shown net of Cenvat Credit on Purchases of Materials, Stores and other inputs.

4. SALES:

a) Sales are recognised net of returns and trade discount on despatch of goods to customers and are reflected in the accounts of gross realisable value i.e. inclusive of Excise Duty but exclusive of VAT.

b) Materials returned / rejected are recorded in the year of return / rejection.

5. EXCISE DITY

a) Excise Duty recovered are included in Sale of goods & merchandise.

b) Excise Duty on Closing Stock of finished products lying at factory premises is provided for and also included in the valuation of Inventories.

6. FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation, and impairment, if any, and includes inward freight, taxes and other incidental expenses incurred to bring the assets to their working condition for intended use but exclusive of Cenvat wherever claimed. Fixed Assets includes internal transfers.

7. DEPRECIATION:

Depreciation is provided at the rate and in the same manner prescribed in Schedule XIV of the Companies Act, 1956.

a) In respect of assets acquired upto 31st March, 1991, on written down value method.

b) In respect of assets acquired on or after 1st April, 1991, on straight line method.

c) Rolls are fully depreciated on pro-rata basis on time proportion as per rate prescribed in Schedule - XIV of the Companies Act'' 1956 to such class of assets.

8. CAPITAL WORK-IN-PROGRESS

Investments made on procurement and fabrication of various Fixed Assets are shown as Capital Work in Progress and are valued at cost. The cost includes all pre-operative expenses relating to construction period for erection of the factory. Cost includes freight, taxes and other incidental expenses but exclusive of "CENVAT" availed. The same will be capitalised and allocated to different class of Fixed Assets on the inception of the commercial production of units / extension of units.

9. INVENTORIES:

a) Materials and Stores are valued at lower of cost exclusive of excise duty or net realizable value .

b) Finished Goods and Scraps are valued at lower of Cost of Production or net realizable value after providing for obsolescence and other losses where considered necessary by the management and are inclusive of Excise Duty.

c) Stores & Spares, loose tools, considered as an item of Current Assets are valued at lower of cost or net realisable value.

10. INVESTMENTS:

Investments made by the Company are of a Long Term nature and hence such Investment are stated at cost. The diminution in the value of Investments, are considered when the same is to be of permanent nature.

11. RETIREMENT BENEFITS:

a) Liability for Gratuity is ascertained by the management on actuarial basis as on the year end and provided in accounts accordingly.

b) Contribution to provident fund and superannuation fund are accounted for on accrual basis.

c) Provision for Leave encashment is charged to Profit & Loss Account on the basis of actuarial valuation as on the year end.

d) Liability for bonus is provided for on accrual basis subject to final payments.

12. PROVISION FOR INCOME TAX:

Income tax provision comprises of current tax and deferred tax. Current tax provision has been determined after considering deductions available under Income-tax Act, 1961. Deferred tax is recognised for all timing differences subject to the consideration of prudence applying the tax rates that have been substantively enacted by the balance sheet date.

13. IMPAIRMENT ASSETS

Impairment is ascertained at each balance sheet date in respect of cash generating units. An impairment loss is recognised wherever the carrying amount of an assets exceeds its recoverable value.

14. FOREIGN EXCHANGE FLUCTUATION

Any Income and expenses on account of exchange difference on settlement is recognised in the profit and loss account. However the recognition is done only on realisation basis.


Mar 31, 2012

1. ACCOUNTING CONVENTION:

The Financial Statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Generally Accepted Accounting Principles in India and the Accounting Standards (AS) as notified under Companies (Accounting Standard) Rules, 2006.

During the year, Revised Schedule - VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The Company has reclassified the previous year figures in accordance with the requirements applicable in the current year.

2. REVENUE RECOGNITION:

All incomes and expenditures having a material bearing on the financial statements are recognised on accrual and prudent basis.

3. PURCHASES:

Purchases are shown net of Cenvat Credit on Purchases of Materials, Stores and other inputs.

4. SALES:

a) Sales are recognised net of returns and trade discount on despatch of goods to customers and are reflected in the accounts of gross realisable value i.e. inclusive of Excise Duty but exclusive of VAT.

b) Materials returned / rejected are recorded in the year of return / rejection.

5. EXCISE DITY

a) Excise Duty recovered are included in Sale of goods & merchandise.

b) Excise Duty on Closing Stock of finished products lying at factory premises is provided for and also included in the valuation of Inventories.

6. FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation, and impairment, if any, and includes inward freight, taxes and other incidental expenses incurred to bring the assets to their working condition for intended use but exclusive of Cenvat wherever claimed. Under Fixed Assets addition and deletion of Fixed Assets includes internal transfers.

7. DEPRECIATION:

Depreciation is provided at the rate and in the same manner prescribed in Schedule XIV of the Companies Act, 1956.

a) In respect of assets acquired upto 31st March, 1991, on written down value method.

b) In respect of assets acquired on or after 1st April, 1991, on straight line method.

c) Rolls are fully depreciated on pro-rata basis on time proportion as per rate prescribed in Schedule - XIV of the Companies Act'' 1956 to such class of assets.

8. CAPITAL WORK-IN-PROGRESS

Investments made on procurement and fabrication of various Fixed Assets are shown as Capital Work in Progress and are valued at cost. The cost includes all pre-operative expenses relating to construction period for erection of this factory. Cost includes freight, taxes and other incidental expenses but exclusive of "CENVAT" availed. The same will be capitalised and allocated to different class of Fixed Assets on the inception of the commercial production of units / extension of units.

9. INVENTORIES:

a) Materials and Stores are valued at lower of cost exclusive of excise duty or net realizable value .

b) Finished Goods and Scraps are valued at lower of Cost of Production or net realizable value after providing for obsolescence and other losses where considered necessary by the management and are inclusive of Excise Duty.

c) Stores & Spares, loose tools, considered as on item of Current Assets are valued at lower of cost or net realisable value.

10. INVESTMENTS:

Investments made by the Company are of a Long Term nature and hence such Investment are stated at cost or realisable value whichever is lower. The diminution in the value of Investments, are considered when the same is to be of permanent nature.

11. RETIREMENT BENEFITS:

a) Liability for Gratuity is ascertained by the management on actuarial basis as on the year end and provided in accounts accordingly.

b) Contribution to provident fund and superannuation fund are accounted for on accrual basis.

c) Provision for Leave encashment is charged to Profit & Loss Account on the basis of actuarial valuation as on the year end.

d) Liability for bonus is provided for on accrual basis subject to final payments.

12. PROVISION FOR INCOME TAX:

Income tax provision comprises of current tax and deferred tax. Current tax provision has been determined after considering deductions available under Income-tax Act, 1961. Deferred tax is recognised for all timing differences subject to the consideration of prudence applying the tax rates that have been substantively enacted by the balance sheet date.

13. IMPAIRMENT ASSETS

Impairment is ascertained at each balance sheet date in respect of cash generating units. An impairment loss is recognised wherever the carrying amount of an assets exceeds its recoverable value.


Mar 31, 2011

1. ACCOUNTING CONVENTION:

The Financial Statements are prepared under the historical cost convention on an accrual basis in accordance with the Generally Accepted Accounting Principles in India and the Accounting Standards (AS) as notified under Companies (Accounting Standard) Rules, 2006.

2. REVENUE RECOGNITION:

All incomes and expenditures having a material bearing on the financial statements are recognised on accrual and prudent basis.

3. PURCHASES:

Purchases are shown net of Cenvat Credit on Purchases of Materials, Stores and other inputs.

4. SALES:

a) Sales are recognised net of returns and trade discount on despatch of goods to customers and are reflected in the accounts of gross realisable value i.e. inclusive of Excise Duty but exclusive of VAT.

b) Materials returned / rejected are recorded in the year of return / rejection.

5. EXCISE DITY

a) Excise Duty recovered are included in Sale of goods & merchandise.

b) Excise Duty on Closing Stock of finished products lying at factory premises is provided for and also included in the valuation of Inventories.

6. FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation, and impairment, if any, and includes inward freight, taxes and other incidental expenses incurred to bring the assets to their working condition for intended use but exclusive of Cenvat wherever claimed. Under Fixed Assets addition and deletion of Fixed Assets includes internal transfers.

7. DEPRECIATION:

Depreciation is provided at the rate and in the same manner prescribed in Schedule XIV of the Companies Act, 1956.

a) In respect of assets acquired upto 31st March, 1991, on written down value method.

b) In respect of assets acquired on or after 1st April, 1991, on straight line method.

c) Rolls are fully depreciated on pro-rata basis on time proportion as per rate prescribed in Schedule - XIV of the Companies Act’ 1956 to such class of assets.

8. CAPITAL WORK-IN-PROGRESS

Investments made on procurement and fabrication of various Fixed Assets are shown as Capital Work in Progress and are valued at cost. The cost includes all pre-operative expenses relating to construction period for erection of this factory. Cost includes freight, taxes and other incidental expenses but exclusive of “CENVAT” availed. The same will be capitalised and allocated to different class of Fixed Assets on the inception of the commercial production of units / extension of units.

9. INVENTORIES:

a) Materials and Stores are valued at lower of cost exclusive of excise duty or net realizable value on FIFO method based on consumption of materials.

b) Finished Goods and Scraps are valued at lower of Cost of Production or net realizable value after providing for obsolescence and other losses where considered necessary by the management and are inclusive of Excise Duty.

c) Stores & Spares, loose tools, considered as on item of Current Assets are valued at lower of cost or net realisable value.

10. INVESTMENTS:

Investments made by the Company are of a Long Term nature and hence such Investment are stated at cost or realisable value whichever is lower. The diminution in the value of Investments, are considered when the same is to be of permanent nature.

11. RETIREMENT BENEFITS:

a) Liability for Gratuity is ascertained by the management on actuarial basis as on the year end and provided in accounts accordingly.

b) Contribution to provident fund and superannuation fund are accounted for on accrual basis.

c) Provision for Leave encashment is charged to Profit & Loss Account on the basis of actuarial valuation as on the year end.

d) Liability for bonus is provided for on accrual basis subject to final settlement.

12. PROVISION FOR INCOME TAX:

Income tax provision comprises of current tax and deferred tax. Current tax provision has been determined after considering deductions available under Income-tax Act, 1961. Deferred tax is recognised for all timing differences subject to the consideration of prudence applying the tax rates that have been substantively enacted by the balance sheet date.

13. IMPAIRMENT ASSETS

Impairment is ascertained at each balance sheet date in respect of cash generating units. An impairment loss is recognised wherever the carrying amount of an assets exceeds its recoverable value.

14. PROPOSED DIVIDEND

Provision for the dividends has been made (including Income Tax thereon) in the books of accounts as proposed by the Directors, pending approval at the Annual General Meeting.

 
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