Mar 31, 2014
I) System of Accounting
The Company prepares its accounts on accrual basis, in accordance with
the normally accepted accounting principles. The following however are exceptions:-
a) Insurance claims and interest on overdue payments from customers,
due to uncertainty in realisation, are accounted for on actual receipt
basis.
b) Interest on overdue payments to suppliers is accounted for on actual
payment/acceptance basis.
c) Customer''s claims against the company for replacement of rolls etc.
are accounted for on final settlement of the claims.
d) Estimated liability in respect of performance of Rolls is provided
for based on past experience and historical data.
e) All the assets and liabilities have been classified as current or
non current as per company''s normal operating cycle and other criteria
set out in the Revised Schedule VI of the Companies Act 1956.Based on
the nature of the products and the time between the acquisition of the
assets for processing and their realization in cash and cash
equivalent, the company has ascertained its operating cycle to be less
than 12 months.
ii) Revenue Recognition
Revenue from sale of goods and services rendered is recognized upon
passage of title and rendering of services to the customers, which
generally coincides with delivery.
iii) Fixed Assets
a) Fixed Assets are stated at cost net of recoverable taxes and
including incidental expenses, erection/commissioning and interest etc.
for the period up to the date of commencement of commercial production
or up to the date the asset is put to use.
b) In case of revaluation of Fixed Assets, the original cost is written
up by the revalued figure. The revalued figure is considered in the
accounts and the differential amount is transferred to Revaluation
Reserve.
c) Contribution made/expenses incurred for creation of fixed assets not
owned by the Company are capitalised and depreciated over a period of 5
years.
d) Machinery spares which can be used only in connection with an item
of fixed asset and whose use as per technical assessment is expected to
be irregular are capitalised and depreciated over the residual life of
the respective assets.
e) The carrying amounts of assets are reviewed at each balance sheet
date to determine if there is any indication of impairment based on
external/internal factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount, which
represents the greater of the net selling price and ''Value in use'' of
the assets. The estimated future cash flows considered for determining
the value in use are discounted to their present value at the weighted
average cost of capital.
iv) Depreciation
a) Depreciation on original & revalued assets are provided on Straight
Line Method at the rates and in the manner specified in Schedule XIV of
the Companies Act, 1956.
b) The classification of Plant & Machinery into continuous and
non-continuous process has been carried out as per technical
certification. Depreciation thereon, has been provided accordingly
during the year.
c) Depreciation on assets added/disposed off during the year is
provided on pro-rata basis with reference to the date of
addition/disposal of the respective assets.
d) The difference between depreciation on the revalued amounts and
original cost is transferred from Revaluation Reserve to Profit & Loss
Statement.
e) In case of impairment, if any, depreciation is provided on the
revised carrying amount of the assets over its remaining useful life.
v) Intangible Assets
Expenditure incurred on rights/properties, where benefit is expected to
flow in future, is disclosed as intangible assets.
Expenditure incurred on cost of acquisition of ERP software package and
implementation thereof are amortised over a period of 5 years on
straight Line Method.
vi) Investments
a) Current Quoted Investments are stated at lower value of "at
cost" or "market rate" on individual investment basis,
b) Unquoted /long term investments are considered "at cost", unless
there is a permanent decline in the value thereof, in which case
adequate provision is made against the diminution in the value of
Investment.
vii) Foreign Currency Transactions
a) Foreign Currency Transactions are recorded on the basis of exchange
rates prevailing on the date of transaction.
b) Foreign currency assets and liabilities (other than those covered by
forward contracts) as on the Balance Sheet date are revalued in the
accounts on the basis of exchange rates prevailing at the close of the
year and exchange difference arising therefrom is adjusted to the cost
of fixed assets or Profit & Loss Statement, as the case may be.
c) In case of transactions covered by forward contracts, the difference
between the contract rate and the exchange rate prevailing on the date
of transaction, is adjusted to the cost of fixed assets or Profit and
Loss Statement, proportionately over the contract period.
viii) Research and Development
Research and Development expenditure of revenue nature are charged to
Profit & Loss Statement, while Capital Expenditure are added to the
cost of fixed assets in the year in which these are incurred.
ix) Inventory Valuation
a) Finished and semi finished inventories are valued at cost derived by
activity based accounting or net realizable value whichever is lower.
Raw material & other inventories are valued at cost on weighted average
basis or net realisable value whichever is lower. Cost of inventories
comprise of costs of purchases, cost of conversion and other cost
incurred in bringing the inventory to present location and condition.
b) Rotation scrap is valued at estimated realisable value. The Scrap
roll receivable against free replacement of rolls to customers is
considered in stock on actual receipt.
x) Customs & Excise Duty
The company accounts for Excise Duty at the point of manufacture of
finished goods. Similarly, Custom Duty on imported materials in transit
/ lying in bonded warehouse is accounted for at the time of import /
bonding of materials.
xi) 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 shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
xii) Retirement Benefits
a) The Company funds the incremental Gratuity liability for its
employees on the basis of actuarial valuation.
b) Leave liability to employees is accounted for on actuarial valuation
basis.
xiii) Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
xiv) Taxation
Provision for Income Tax comprises of current tax and deferred tax
charged or released. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act, 1961. Deferred tax is recognized, subject to the
consideration of prudence, on timing differences, being difference
between taxable and accounting income/expenditure that originate in one
period and are capable of reversal in one or more subsequent period(s).
Deferred tax assets are not recognized unless there is "virtual
certainty" that sufficient future taxable income will be available
against which such deferred tax asset will be realized.
xv) Contingencies
Liabilities which are material and whose future outcome cannot be
ascertained with reasonable certainty are treated as contingent and
disclosed by way of notes to the accounts.
Mar 31, 2013
I) System of Accounting
The Company prepares its accounts on accrual basis, in accordance with
the normally accepted accounting principles. The following however are
exceptions:- a) Insurance claims and interest on overdue payments from
customers, due to uncertainty in realisation, are accounted for on
actual receipt basis.
b) Interest on overdue payments to suppliers is accounted for on actual
payment/acceptance basis.
c) Customer''s claims against the company for replacement of rolls etc.
are accounted for on final settlement of the claims.
d) Estimated liability in respect of performance of Rolls is provided
for based on past experience and historical data.
e) All the assets and liabilities have been classified as current or
non current as per company''s normal operating cycle and other criteria
set out in the Revised Schedule VI of the Companies Act 1956.Based on
the nature of the products and the time between the acquisition of the
assets for processing and their realization in cash and cash
equivalent, the company has ascertained its operating cycle to be less
than 12 months.
ii) Revenue Recognition
Revenue from sale of goods and services rendered is recognized upon
passage of title and rendering of services to the customers, which
generally coincides with delivery.
iii) Fixed Assets
a) Fixed Assets are stated at cost net of recoverable taxes and
including incidental expenses, erection/commissioning and interest etc.
for the period up to the date of commencement of commercial production
or up to the date the asset is put to use.
b) In case of revaluation of Fixed Assets, the original cost is written
up by the revalued figure. The revalued figure is considered in the
accounts and the differential amount is transferred to Capital Reserve.
c) Contribution made/expenses incurred for creation of fixed assets not
owned by the Company are capitalised and depreciated over a period of 5
years.
d) Machinery spares which can be used only in connection with an item
of fixed asset and whose use as per technical assessment is expected to
be irregular are capitalised and depreciated over the residual life of
the respective assets.
e) The carrying amounts of assets are reviewed at each balance sheet
date to determine if there is any indication of impairment based on
external/internal factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount, which
represents the greater of the net selling price and ''Value in use'' of
the assets. The estimated future cash flows considered for determining
the value in use are discounted to their present value at the weighted
average cost of capital.
iv) Depreciation
a) Depreciation on original & revalued assets are provided on Straight
Line Method at the rates and in the manner specified in Schedule XIV of
the Companies Act, 1956.
b) The classification of Plant & Machinery into continuous and
non-continuous process has been carried out as per technical
certification. Depreciation thereon, has been provided accordingly
during the year.
c) Depreciation on assets added/disposed off during the year is
provided on pro-rata basis with reference to the date of
addition/disposal of the respective assets.
d) The difference between depreciation on the revalued amounts and
original cost is transferred from Revaluation Reserve to Profit & Loss
Statement.
e) In case of impairment, if any, depreciation is provided on the
revised carrying amount of the assets over its remaining useful life.
v) Intangible Assets
Expenditure incurred on rights/properties, where benefit is expected to
flow in future, is disclosed as intangible assets.
Expenditure incurred on cost of acquisition of ERP software package and
implementation thereof are amortised over a period of 5 years on
straight Line Method.
vi) Investments
a) Current Quoted Investments are stated at lower value of "at cost" or
"market rate" on individual investment basis,
b) Unquoted /long term investments are considered " at cost", unless
there is a permanent decline in the value thereof, in which case
adequate provision is made against the diminution in the value of
Investment.
vii) Foreign Currency Transactions
a) Foreign Currency Transactions are recorded on the basis of exchange
rates prevailing on the date of transaction.
b) Foreign currency assets and liabilities (other than those covered by
forward contracts) as on the Balance Sheet date are revalued in the
accounts on the basis of exchange rates prevailing at the close of the
year and exchange difference arising therefrom is adjusted to the cost
of fixed assets or Profit & Loss Statement, as the case may be.
c) In case of transactions covered by forward contracts, the difference
between the contract rate and the exchange rate prevailing on the date
of transaction, is adjusted to the cost of fixed assets or Profit and
Loss Statement, proportionately over the contract period.
viii) Research and Development
Research and Development expenditure of revenue nature are charged to
Profit & Loss Statement, while Capital Expenditure are added to the
cost of fixed assets in the year in which these are incurred.
ix) Inventory Valuation
a) Finished and semi finished inventories are valued at cost derived by
activity based accounting or net realizable value whichever is lower.
Raw material & other inventories are valued at cost on weighted average
basis or net realisable value whichever is lower. Cost of inventories
comprise of costs of purchases, cost of conversion and other cost
incurred in bringing the inventory to present location and condition.
b) Rotation scrap is valued at estimated realisable value. The Scrap
roll receivable against free replacement of rolls to customers is
considered in stock on actual receipt.
x) Customs & Excise Duty
The company accounts for Excise Duty at the point of manufacture of
finished goods. Similarly, Custom Duty on imported materials in transit
/ lying in bonded warehouse is accounted for at the time of import /
bonding of materials.
xi) 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 shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
xii) Retirement Benefits
a) The Company funds the incremental Gratuity liability for its
employees on the basis of actuarial valuation.
b) Leave liability to employees is accounted for on actuarial valuation
basis.
xiii) Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
xiv) Taxation
Provision for Income Tax comprises of current tax and deferred tax
charged or released. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act, 1961. Deferred tax is recognized, subject to the
consideration of prudence, on timing differences, being difference
between taxable and accounting income/expenditure that originate in one
period and are capable of reversal in one or more subsequent period(s).
Deferred tax assets are not recognized unless there is "virtual
certainty" that sufficient future taxable income will be available
against which such deferred tax asset will be realized.
xv) Contingencies
Liabilities which are material and whose future outcome cannot be
ascertained with reasonable certainty, are treated as contingent and
disclosed by way of notes to the accounts.
Mar 31, 2012
The Company prepares its accounts on accrual basis, in accordance with
the normally accepted accounting principles. The following however are
exceptions:-
a) Insurance claims and interest on overdue payments from customers,
due to uncertainty in realisation, are accounted for on actual receipt
basis.
b) Interest on overdue payments to suppliers is accounted for on actual
payment/acceptance basis.
c) Customer's claims against the company for replacement of rolls etc.
are accounted for on final settlement of the claims.
d) Estimated liability in respect of performance of Rolls is provided
for based on past experience and historical data.
e) All the assets and liabilities have been classified as current or
non current as per company's normal operating cycle and other criteria
set out in the Schedule VI of the Companies Act 1956. Based on the
nature of the products and the time between the acquisition of the
assets for processing and their realization in cash and cash
equivalent, the company has ascertained its operating cycle to be less
than 12 months.
ii) Revenue Recognition
Revenue from sale of goods and services rendered is recognized upon
passage of title and rendering of services to the customers, which
generally coincides with delivery.
iii) Fixed Assets
a) Fixed Assets are stated at cost net of recoverable taxes and
including incidental expenses, erection/commissioning and interest etc.
for the period up to the date of commencement of commercial production
or up to the date the asset is put to use.
b) In case of revaluation of Fixed Assets, the original cost is written
up by the revalued figure. The revalued figure is considered in the
accounts and the differential amount is transferred to Capital Reserve.
c) Contribution made/expenses incurred for creation of fixed assets not
owned by the Company are capitalised and depreciated over a period of 5
years.
d) Machinery spares which can be used only in connection with an item
of fixed asset and whose use as per technical assessment is expected to
be irregular are capitalised and depreciated over the residual life of
the respective assets.
e) The carrying amounts of assets are reviewed at each balance sheet
date to determine if there is any indication of impairment based on
external/internal factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount, which
represents the greater of the net selling price and 'Value in use' of
the assets. The estimated future cash flows considered for determining
the value in use are discounted to their present value at the weighted
average cost of capital.
iv) Depreciation
a) Depreciation on original & revalued assets are provided on Straight
Line Method at the rates and in the manner specified in Schedule XIV of
the Companies Act, 1956.
b) The classification of Plant & Machinery into continuous and
non-continuous process has been carried out as per technical
certification. Depreciation thereon, has been provided accordingly
during the year.
c) Depreciation on assets added/disposed off during the year is
provided on pro-rata basis with reference to the date of
addition/disposal of the respective assets.
d) The difference between depreciation on the revalued amounts and
original cost is transferred from Capital Reserve to Profit & Loss
Statement.
e) In case of impairment, if any, depreciation is provided on the
revised carrying amount of the assets over its remaining useful life.
v) Intangible Assets
Expenditure incurred on rights/properties, where benefit is expected to
flow in future, is disclosed as intangible assets.
Expenditure incurred on cost of acquisition of ERP software package and
implementation thereof are amortised over a period of 5 years on
straight line method.
vi) Investments
a) Current Quoted Investments are stated at lower value of "at
cost" or "market rate" on individual investment basis.
b) Unquoted /long term investments are considered " at cost",
unless there is a permanent decline in the value thereof, in which case
adequate provision is made against the diminution in the value of
investment.
vii) Foreign Currency Transactions
a) Foreign Currency Transactions are recorded on the basis of exchange
rates prevailing on the date of transaction.
b) Foreign currency assets and liabilities (other than those covered by
forward contracts) as on the Balance Sheet date are revalued in the
accounts on the basis of exchange rates prevailing at the close of the
year and exchange difference arising therefrom is adjusted to the cost
of fixed assets or Profit & Loss Statement, as the case may be.
c) In case of transactions covered by forward contracts, the difference
between the contract rate and the exchange rate prevailing on the date
of transaction, is adjusted to the cost of fixed assets or Profit and
Loss Statement, proportionately over the contract period.
viii) Research and Development
Research and Development expenditure of revenue nature are charged to
Profit & Loss Statement, while Capital Expenditure are added to the
cost of fixed assets in the year in which these are incurred.
ix) Inventory Valuation
a) Finished and semi finished inventories are valued at cost derived by
activity based accounting or net realizable value whichever is lower.
Raw material & other inventories are valued at cost on weighted average
basis or net realisable value whichever is lower. Cost of inventories
comprise of costs of purchases, cost of conversion and other cost
incurred in bringing the inventory to present location and condition.
b) Rotation scrap is valued at estimated realisable value. The Scrap
roll receivable against free replacement of rolls to customers is
considered in stock on actual receipt.
x) Customs & Excise Duty
The company accounts for Excise Duty at the point of manufacture of
finished goods. Similarly, Custom Duty on imported materials in transit
/ lying in bonded warehouse is accounted for at the time of import /
bonding of materials.
xi) 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 shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
xii) Retirement Benefits
a) The Company funds the incremental Gratuity liability for its
employees on the basis of actuarial valuation.
b) Leave liability to employees is accounted for on actuarial valuation
basis.
xiii) Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
xiv) Taxation
Provision for Income Tax comprises of current tax and deferred tax
charged or released. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act, 1961. Deferred tax is recognized, subject to the
consideration of prudence, on timing differences, being difference
between taxable and accounting income/expenditure that originate in one
period and are capable of reversal in one or more subsequent period(s).
Deferred tax assets are not recognized unless there is "virtual
certainty" that sufficient future taxable income will be available
against which such deferred tax asset will be realized.
xv) Contingencies
Liabilities which are material and whose future outcome cannot be
ascertained with reasonable certainty, are treated as contingent and
disclosed by way of notes to the accounts.
Mar 31, 2011
I) System of Accounting
The Company prepares its accounts on accrual basis, in accordance with
the normally accepted accounting principles. The following however are
exceptions:- a) Insurance claims and interest on overdue payments from
customers, due to uncertainty in realisation, are accounted for on
actual receipt basis.
b) Interest on overdue payments to suppliers is accounted for on actual
payment/acceptance basis.
c) Customer's claims against the company for replacement of rolls etc.
are accounted for on final settlement of the claims.
d) Estimated liability in respect of performance of Rolls is provided
for based on past experience and historical data.
ii) Revenue Recognition
Revenue from sale of goods and services rendered is recognized upon
passage of title and rendering of services to the customers, which
generally coincides with delivery.
iii) Fixed Assets
a) Fixed Assets are stated at cost net of recoverable taxes and
including incidental expenses, erection/commissioning and interest etc.
for the period up to the date of commencement of commercial production
or up to the date the asset is put to use.
b) In case of revaluation of Fixed Assets, the original cost is written
up by the revalued figure. The revalued figure is considered in the
accounts and the differential amount is transferred to Capital Reserve.
c) Contribution made/expenses incurred for creation of fixed assets not
owned by the Company are capitalised and depreciated over a period of 5
years.
d) Machinery spares which can be used only in connection with an item
of fixed asset and whose use as per technical assessment is expected to
be irregular are capitalised and depreciated over the residual life of
the respective assets.
e) The carrying amounts of assets are reviewed at each balance sheet
date to determine if there is any indication of impairment based on
external/internal factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount, which
represents the greater of the net selling price and 'Value in use' of
the assets. The estimated future cash flows considered for determining
the value in use are discounted to their present value at the weighted
average cost of capital.
iv) Depreciation
a) Depreciation on original & revalued assets are provided on Straight
Line Method at the rates and in the manner specified in Schedule XIV of
the Companies Act, 1956.
b) The classification of Plant & Machinery into continuous and
non-continuous process has been carried out as per technical
certification. Depreciation thereon, has been provided accordingly
during the year.
c) Depreciation on assets added/disposed off during the year is
provided on pro-rata basis with reference to the date of
addition/disposal of the respective assets.
d) The difference between depreciation on the revalued amounts and
original cost is transferred from Capital Reserve to Profit & Loss
Account.
e) In case of impairment, if any, depreciation is provided on the
revised carrying amount of the assets over its remaining useful life.
v) Intangible Assets
Expenditure incurred on rights/properties, where benefit is expected to
flow in future, is disclosed as intangible assets.
Expenditure incurred on cost of acquisition of ERP software package and
implementation thereof are amortised over a period of 5 years on
straight Line Method.
vi) Investments
a) Current Quoted Investments are stated at lower value of Ãat costà or
Ãmarket rateà on individual investment basis,
b) Unquoted /long term investments are considered à at costÃ, unless
there is a permanent decline in the value thereof, in which case
adequate provision is made against the diminution in the value of
Investment.
vii) Foreign Currency Transactions
a) Foreign Currency Transactions are recorded on the basis of exchange
rates prevailing on the date of transaction.
b) Foreign currency assets and liabilities (other than those covered by
forward contracts) as on the Balance Sheet date are revalued in the
accounts on the basis of exchange rates prevailing at the close of the
year and exchange difference arising therefrom is adjusted to the cost
of fixed assets or Profit & Loss Account, as the case may be.
c) In case of transactions covered by forward contracts, the difference
between the contract rate and the exchange rate prevailing on the date
of transaction, is adjusted to the cost of fixed assets or Profit and
Loss Account, proportionately over the contract period.
viii) Research and Development
Research and Development expenditure of revenue nature are charged to
Profit & Loss Account, while Capital Expenditure are added to the cost
of fixed assets in the year in which these are incurred.
ix) Inventory Valuation
a) Finished and semi finished inventories are valued at cost derived by
activity based accounting or net realizable value whichever is lower.
Raw material & other inventories are valued at cost on weighted average
basis or net realisable value whichever is lower. Cost of inventories
comprise of costs of purchases, cost of conversion and other cost
incurred in bringing the inventory to present location and condition.
b) Rotation scrap is valued at estimated realisable value. The Scrap
roll receivable against free replacement of rolls to customers is
considered in stock on actual receipt.
x) Customs & Excise Duty
The company accounts for Excise Duty at the point of manufacture of
finished goods. Similarly, Custom Duty on imported materials in transit
/ lying in bonded warehouse is accounted for at the time of import /
bonding of materials.
xi) 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 shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
xii) Retirement Benefits
a) The Company funds the incremental Gratuity liability for its
employees on the basis of actuarial valuation.
b) Leave liability to employees is accounted for on actuarial valuation
basis.
xiii) Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
xiv) Taxation
Provision for Income Tax comprises of current tax and deferred tax
charged or released. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act, 1961. Deferred tax is recognized, subject to the
consideration of prudence, on timing differences, being difference
between taxable and accounting income/expenditure that originate in one
period and are capable of reversal in one or more subsequent period(s).
Deferred tax assets are not recognized unless there is Ãvirtual
certaintyà that sufficient future taxable income will be available
against which such deferred tax asset will be realized.
xv) Contingencies
Liabilities which are material and whose future outcome cannot be
ascertained with reasonable certainty, are treated as contingent and
disclosed by way of notes to the accounts.
Mar 31, 2010
I) System of Accounting
The Company prepares its accounts on accrual basis, in accordance with
the normally accepted accounting principles. The following however are
exceptions:-
a) Insurance claims and interest on overdue payments from customers,
due to uncertainty in realisation, are accounted for on actual receipt
basis.
b) Interest on overdue payments to suppliers is accounted for on actual
payment/acceptance basis.
c) Customers claims against the company for replacement of rolls etc.
are accounted for on final settlement of the claims.
d) Estimated liability in respect of performance of Rolls is provided
for based on past experience and historical data.
ii) Revenue Recognition
Revenue from sale of goods and services rendered is recognized upon
passage of title and rendering of services to the customers, which
generally coincides with delivery.
iii) Fixed Assets
a) Fixed Assets are stated at the cost of acquisition inclusive of
duties, taxes, incidental expenses, erection/commissioning and interest
etc. for the period up to the date of commencement of commercial
production or up to the date the asset is put to use.
b) In case of revaluation of Fixed Assets, the original cost is written
up by the revalued figure. The revalued figure is considered in the
accounts and the differential amount is transferred to Capital Reserve.
c) Contribution made/expenses incurred for creation of fixed assets not
owned by the Company are capitalised and depreciated over a period of 5
years.
d) Machinery spares which can be used only in connection with an item
of fixed asset and whose use as per technical assessment is expected to
be irregular are capitalised and depreciated over the residual life of
the respective assets.
e) The carrying amounts of assets are reviewed at each balance sheet
date to determine if there is any indication of impairment based on
external/internal factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount, which
represents the greater of the net selling price and Value in use of
the assets. The estimated future cash flows considered for determining
the value in use are discounted to their present value at the weighted
average cost of capital.
iv) Depreciation
a) Depreciation on original & revalued assets are provided on Straight
Line Method at the rates and in the manner specified in Schedule XIV of
the Companies Act, 1956.
b) The classification of Plant & Machinery into continuous and
non-continuous process has been carried out as per technical
certification. Depreciation thereon, has been provided accordingly
during the year.
c) Depreciation on assets added/disposed off during the year is
provided on pro-rata basis with reference to the date of
addition/disposal of the respective assets.
d) The difference between depreciation on the revalued amounts and
original cost is transferred from Capital Reserve to Profit & Loss
Account.
e) In case of impairment, if any, depreciation is provided on the
revised carrying amount of the assets over its remaining useful life.
v) Intangible Assets
Expenditure incurred on rights/properties, where benefit is expected to
flow in future, is disclosed as intangible assets.
Expenditure incurred on cost of acquisition of new software package and
implementation thereof are amortised over a period of 5 years on
Straight Line Method.
vi) Investments
a) Current Quoted Investments are stated at lower value of Ãat costà or
Ãmarket rateà on individual investment basis.
b) Unquoted /long term investments are considered à at costÃ, unless
there is a permanent decline in the value thereof, in which case
adequate provision is made against the diminution in the value of
Investment.
vii) Foreign Currency Transactions
a) Foreign Currency Transactions are recorded on the basis of exchange
rates prevailing on the date of transaction.
b) Foreign currency assets and liabilities (other than those covered by
forward contracts) as on the Balance Sheet date are revalued in the
accounts on the basis of exchange rates prevailing at the close of the
year and exchange difference arising therefrom is adjusted to the cost
of fixed assets or Profit & Loss Account, as the case may be.
c) In case of transactions covered by forward contracts, the difference
between the contract rate and the exchange rate prevailing on the date
of transaction, is adjusted to the cost of fixed assets or Profit and
Loss Account, proportionately over the contract period.
viii) Research and Development
Research and Development expenditure of revenue nature are charged to
Profit & Loss Account, while Capital Expenditure are added to the cost
of fixed assets in the year in which these are incurred.
ix) Inventory Valuation
a) Finished and semi finished inventories are valued at cost derived by
activity based accounting or net realizable value whichever is lower.
Raw material & other inventories are valued at cost on weighted average
basis or net realisable value whichever is lower. Cost of inventories
comprise of costs of purchases, cost of conversion and other cost
incurred in bringing the inventory to present location and condition.
b) Rotation scrap is valued at estimated realisable value. The Scrap
roll receivable against free replacement of rolls to customers is
considered in stock on actual receipt.
x) Customs & Excise Duty
The company accounts for Excise Duty at the point of manufacture of
finished goods. Similarly, Custom Duty on imported materials in transit
/ lying in bonded warehouse is accounted for at the time of import /
bonding of materials.
xi) 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 shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
xii) Retirement Benefits
a) The Company funds the incremental Gratuity liability for its
employees on the basis of actuarial valuation.
b) Leave liability to employees is accounted for on actuarial valuation
basis.
xiii) Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
xiv) Taxation
Provision for Income Tax comprises of current tax and deferred tax
charged or released. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act, 1961. Deferred tax is recognized, subject to the
consideration of prudence, on timing differences, being difference
between taxable and accounting income/expenditure that originate in one
period and are capable of reversal in one or more subsequent period(s).
Deferred tax assets are not recognized unless there is Ãvirtual
certaintyà that sufficient future taxable income will be available
against which such deferred tax asset will be realized.
xv) Contingencies
Liabilities which are material and whose future outcome cannot be
ascertained with reasonable certainty, are treated as contingent and
disclosed by way of notes to the accounts.
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