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Accounting Policies of Eastcoast Steel Ltd. Company

Mar 31, 2015

1.1 Basis of Accounting:

The financial statements have been prepared under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) and the Accounting Standards notified under the relevant provisions of the Companies Act, 2013

1.2 Use of Estimates:

The preparation of financial statement requires estimates and assumptions to be made and that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.3 Fixed Assets and Depreciation:

a) Fixed Assets are stated at cost of acquisition or installation and includes erection and construction expenses.

b) Depreciation is provided under the "written down value" method at the useful life prescribed in Schedule II to the Companies Act, 2013 in the manner stated therein.

1.4 Investment:

a) Current investments are carried at lower of cost and market value.

b) Non Current investments are stated at cost. Provision for diminution in the value of Non Current investments is made only if such a decline is other than temporary.

1.5 Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.6 Retirement Benefits:

Retirement benefits are accounted for on accrual basis as per Revised Accounting Standard –15 on the basis of actuarial valuation.

1.7 Foreign Currency Transactions:

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Exchange Difference arising on foreign currency transactions other than fixed assets are recognized as income or expense in the Statement of Profit and Loss. Exchange Differences on unpaid liability arising on foreign currency transactions for fixed assets are adjusted to the Cost of fixed assets.

1.8 Taxes:

Income tax expense comprises current tax, deferred tax charge or credit. The deferred tax charge or credit and the corresponding deferred tax liability and assets are recognized using the tax rates that have been enacted or substantially enacted on the Balance Sheet date.

Deferred Tax assets arising from unabsorbed depreciation or carry forward losses are recognized only if there is virtual certainty of realization of such amounts. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets are reviewed at each Balance Sheet date to reassess their reliability.

1.9 Impairment of Assets:

The carrying amount of assets are reviewed at each Balance Sheet date to assess whether there is any indication of impairment of the carrying amount of such assets of the Company. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.


Mar 31, 2014

1.1 Basis of Accounting:

The financial statements are prepared on an accrual basis of accounting in accordance with generally accepted accounting principles in India and provisions of Companies Act, 1956.

1.2 Use of Estimates:

The preparation of financial statement requires estimates and assumptions to be made and that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.

1.3 Fixed Assets and Deprecation:

a) Fixed Assets are stated at cost of acquisition or installation and includes erection and construction expenses.

b) Depreciation has been provided on the basis of straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

1.4 Investments:

Investments are stated at cost.

1.5 Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.6 Retirement Benefits:

Retirement benefits are accounted for on accrual basis as per Revised Accounting Standard -15 on the basis of actuarial valuation.

1.7 Foreign Currency Transactions:

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Exchange Difference arising on foreign currency transactions other than fixed assets are recognized as income or expense in the Statement of Prof it and Loss. Exchange Differences on unpaid liability arising on foreign currency transactions for fixed assets are adjusted to the Cost of fixed assets.

1.8 Taxes:

Income tax expense comprises current tax, deferred tax charge or credit. The deferred tax charge or credit and the corresponding deferred tax liability and assets are recognized using the tax rates that have been enacted or substantially enacted on the Balance Sheet date.

Deferred Tax assets arising from unabsorbed depreciation or carry forward losses are recognized only if there is virtual certainty of realization of such amounts. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets are reviewed at each Balance Sheet date to reassess their reliability.

1.9 Impairment of Assets:

The carrying amount of assets are reviewed at each Balance Sheet date to assess whether there is any indication of impairment of the carrying amount of such assets of the company. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.


Mar 31, 2013

1.1 Basis of Accounting:

The financial statements are prepared on an accrual basis of accounting in accordance with generally accepted accounting principles in India and provisions of Companies Act, 1956 .

1.2 Use of Estimates:

The preparation of financial statement requires estimates and assumptions to be made and that affect the reported amount of assets and labilities on the date of the financial statements and the reported , amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

1.3 Fixed Assets and Deprecation:

a) Fixed Assets are stated at cost of acquisition or installation and includes erection and construction expenses.

b) Depreciation has been provided on the basis of straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

1.4 Investment:

Investment are stated at cost.

1.5 Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.6 Reteriment Benefits:

Retirement benefits are accounted for on accrual basis as per Revised Accounting Standard -15 on the basis of actuarial valuation.

1.7 Foreign Currency Transactions:

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Exchange Difference arising on foreign currency transactions other than fixed assets are recognized as income or expense in the Statement of Profit and Loss. Exchange Differences on unpaid liability arising on foreign currency transactions for fixed assets are adjusted to the Cost of fixed assets.

1.8 Taxes

Income tax expense comprises current tax, deferred tax charge or credit. The deferred tax charge or credit and the corresponding deferred tax liability and assets are recognized using the tax rates that have been enacted or substantially enacted on the Balance Sheet date. Deferred Tax assets arising from unabsorbed depreciation or carry forward losses are recognized only if there is virtual certainty of realization of such amounts. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets are reviewed at each Balance Sheet date to reassess their reliability.

1.9 Impairment of Assets

The carrying amount of assets are reviewed at each Balance Sheet date to assess whether there is any indication of impairment of the carrying amount of such assets of the company. An impairment loss , is recognized wherever the carrying amount of an asset exceeds its recoverable amount.


Mar 31, 2011

1. Basis of accounting:

The financial statements are prepared on an accrual basis of accounting in accordance with generally accepted accounting principles and provisions of Companies Act, 1956, read with the Companies (Accounting Standards) Rules, 2006.

2. Fixed Assets & Depreciation:

(a) Fixed Assets are stated at Cost of acquisition or installation and includes erection and construction expenses.

(b) Depreciation has been provided on the basis of Straight Line Method at the rates and in the manner specified in schedule XIV of the Companies Act 1956.

3. Investments: Investments are stated at Cost.

4. Liability Recognition:

Provision is made in Accounts in respect of all liabilities relating to the year under review which have known till the date of the accounts were prepared for authentication by the Board of Directors and which have material effect on the position stated in the balance sheet Liabilities, claims and debts not acknowledged/ accepted and disputed by the Company and not provided for, are being disclosed in the Notes to the Accounts.

5. Retirements Benefits:

Retirement benefits are accounted as per Revised Accounting Standard-15 on the basis of actuarial valuation.

6. Foreign Currency Transactions:

Transactions in foreign Currency are recorded at the exchange rate prevailing at the date of transaction. Exchange difference arising on foreign currency transaction other than fixed assets, are recognized as income or expense in the Profit & Loss Account. Exchange differences on unpaid long term liability arising on foreign currency transaction related to acqusation of fixed assets are adjusted with the cost of the fixed assets.

7. Taxes:

Income tax expense comprises current tax, deferred tax charge or credit and fringe benefit tax. The deferred tax charge or credit and the corresponding deferred tax liability and assets are recognized using the tax rates that have been enacted or substantially enacted on the Balance Sheet date.

Deferred Tax assets arising from unabsorbed depreciation or carry forward losses are recognized only if there is virtual certainty of realization of such amounts. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets are reviewed at each Balance Sheet date to reassess their reliability.

8. Impairment of Assets:

The carrying amount of assets are reviewed at each Balance Sheet date to assess whether there is any indication of impairment of the carrying amount of such assets of the company. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.


Mar 31, 2010

1. Basis of accounting:

The financial statements are prepared on an accrual basis of accounting in accordance with generally accepted accounting principles and provisions of Companies Act, 1956, read with the Companies (Accounting Standards) Rules, 2006.

2. Fixed Assets & Depreciation:

a) Fixed Assets are stated at Cost of acquisition or installation and includes erection and construction expenses.

b) Depreciation has been provided on the basis of Straight Line Method at the rates and in the manner specified in schedule XIV of the Companies Act 1956.

3. Investments: Investments are stated at Cost.

4. Valuation - Inventories: Not applicable as stocks being Nil"

5. Liability Recognition:

Provision is made in Accounts in respect of all liabilities relating to the year under review which have known till the date of the accounts were prepared for authentication by the Board of Directors and which have material effect on the position stated in the balance sheet Liabilities, claims and debts not acknowledged/ accepted and disputed by the Company and not provided for, are being disclosed in the Notes to the Accounts.

6. Retirements Benefits:

Retirement benefits are accounted for on Accrual basis as per Revised Accounting Standard-15 on the basis of actuarial valuation.

7. Foreign Currency Transactions:

Transactions in foreign Currency are recorded at the exchange rate prevailing at the date of transaction. Exchange difference arising on foreign currency transaction other than fixed assets, are recognized as income or expense in the Profit & Loss Account. Exchange differences on unpaid liability arising on foreign currency transaction for fixed assets are adjusted with the cost of the fixed assets.

8. Taxes:

Income tax expense comprises current tax, deferred tax charge or credit and fringe benefit tax. The deferred tax charge or credit and the corresponding deferred tax liability and assets are recognized using the tax rates that have been enacted or substantially enacted on the balance Sheet date.

Deferred Tax assets arising from unabsorbed depreciation or carry forward losses are recognized only if there is virtual certainty of realization of such amounts. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets are reviewed at each Balance sheet date to reassess their reliability.

9. Impairment of Assets:

The carrying amount of assets are reviewed at each Balance sheet date to assess whether there is any indication of impairment of the carrying amount of such assets of the company. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

 
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