Home  »  Company  »  Beekay Steel Indus  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Beekay Steel Industries Ltd. Company

Mar 31, 2016

NOTE: 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

(annexed to and forming part of the financial statements for the year ended 31st March,2016)

These Financial Statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis, except for certain tangible assets which are being carried at revalued amounts. Pursuant to section 183 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules,2014, till the standards of accounting or any addendum thereto are prescribed by central government in consultation and recommendation of the National Financial Reporting Authority, the existing accounting standards notified under the Companies Act,1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) of Companies Act,1956(Companies (Accounting Standards) Rules,2006, as amended ) and other relevant provisions of the Companies Act,2013.

"The Ministry of Corporate Affairs (MCA) has notified the Companies (Accounting Standards) Amendment Rules,2016 vide its notification dated 30th March,2016. The said notification read with Rule 3(2) of the Companies (Accounting Standards) Rules,2006 is applicable to accounting period commencing on or after the date of notification i.e 1st April,2016".

All the assets and liabilities have been classified as current or noncurrent as per the Company''s normal operating cycle and other criteria set out in 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 equivalent, the Company has ascertained its operating cycle to be 12 months for the purpose of current-noncurrent classification of assets and liabilities.

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

1. USE OF ESTIMATES:

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, 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 recognized in the period in which the results are known/materialized.

2. REVENUE RECOGNITION:

a) Revenues/Incomes and Costs/Expenditure are generally accounted on accrual, as they are earned or incurred.

b) Sale of Goods is recognized 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".

3. PURCHASES:

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

4. SALES:

a) Sales are recognized net of returns and trade discount on dispatch of goods to customers and are reflected in the accounts of gross realizable 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 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.

6. FIXED ASSETS: Tangible Assets

These are stated at acquisition cost, net of accumulated depreciation and accumulated impairment losses written off during the year. Subsequent expenditures related to an item of Fixed Assets are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Any expected loss is recognized immediately in the Statement of Profit and Loss on sale of assets.

Losses arising from disposal of fixed assets which are carried at cost are recognized in the Statement of Profit and Loss.

Significant components of assets having a life shorter than the main asset, if any is depreciated over the shorter life.

7. DEPRECIATION:

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

a) Depreciation on fixed assets is provided on written down value method over the estimated useful life of assets.

b) Depreciation on additions to assets or on sale / discernment of assets, is calculated pro rata from the month of such addition or uptown the month of such sale/discernment, as the case may be.

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. Freight, Taxes and other incidental expenses but exclusive of "CENVAT" availed. This assets will be capitalized on being this are put on use.

9. BORROWING COST:

Interest and borrowing costs are charged to revenue.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

a) Provision are recognized 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.

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 occurrence of one or more uncertain future events not wholly within the control of the Company or a present 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 recognized nor disclosed in the financial statements.

11. INVENTORIES:

Inventories of Raw Materials, Work-in-Progress, stores and spares, Finished Goods and Stock-in-trade are stated ''at cost’. Goods-in-Transit are stated ''at cost''. Cost comprise all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost formulae used are ''First-in-First-out'', ''Weighted Average Cost'' or ''Specific identification’, as applicable.

12. INVESTMENTS:

Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments. Current investments are carried at cost or fair value, whichever is lower. Long term investments are carried at cost. However, provision for diminution is made to recognize a decline, other than temporary, in the value of investments, such reduction in the value of long term investment being determined and made for each investment individually.

13. EMPLOYEE BENEFITS:

a) Liability for Gratuity is ascertained 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.

14. TAXATION:

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions.

Deferred tax is recognized for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Minimum Alternative Tax credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the 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.

15. FOREIGN CURRENCY TRANSLATIONS

(i) All transactions in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.

(ii) Monetary items in the form of Loans, Current Assets and Current Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet. Resultant gain or loss is accounted during the year.

(iii) All other incomes or expenditure in foreign currency are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.

16. IMPAIRMENT OF ASSETS

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss recognized in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

17. EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by equity shares outstanding during the period. Earnings considered in ascertaining the Company''s earnings per share is the net profit for the period.


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.

Find IFSC