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Accounting Policies of Rudra Global Infra Products Ltd. Company

Mar 31, 2018

1. Significant Accounting Policies:

1.1. Basis of preparation of standalone financial Statements:

a. The standalone financial statements are prepared under the historical cost convention, ongoing concern basis and all material aspects with the Accounting Standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realization of incomes. The accounting policies adopted in the preparation of standalone financial statements are consistent with those of previous year.

b. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in th e accounting policy hitherto in use.

c. As the half year and year-to-date figures are taken from the source and rounded to the nearest digits, the half year figures in these financial statements added up to the figures reported for the previous half year might not always add up to the year-to-date figures reported in theses standalone financial statements.

1.2. Use of Estimates:-

a. The preparation of standalone financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities and commitments at the end of the reporting period and results of operations during the reporting period. Although these estimates are based upon the management’s best knowledge of current events and actions, actual results may differ from the estimates used in preparing the accompanying financial statements. Any revision to accounting estimates is recognized prospectively in current and future periods.

b. All material expenditure and income to the extent considered payable and receivable are accounted for on accrual basis, except for insurance claim and refunds/ subsidy from statutory authorities, which are accounted on cash basis, keeping in view the concept of materiality.

c. Accounting estimates could changes from period to period. Actual results could differ from theses estimates. Appropriate changes in estimate are made as the Management becomes aware of changes in circumstances surrounding the estimate. Changes in estimates are reflected in the standalone financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the standalone financial statements.

1.3. Revenue Recognition:-

a. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

b. Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the good have been transferred to the buyer, usually on delivery of the goods. Further, sales are exclusive of all duties and taxes and net of returns, claims, rebates, discounts, etc.

c. Revenue from operations comprises of sale of product and other operating income which also include Royalty (brand) income. Royalty (brand) income is recognized on accrual basis in accordance with the terms of the relevant agreement

d. Revenue of Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

1.4. Inventories:

Inventories are taken as verified, valued and certified by the management. The company has been following the practice of accounting for the quantity of raw material and finished goods on the basis of the weight (in tones). The stock of raw materials and finished goods at the year-end are ascertained by reducing the quantity actually used and/ or sold from the quantity of raw materials purchased or finished goods produced respectively.

I. The inventories are valued as under:

1) Raw Material - At cost

2) Finished Goods - At cost or net realizable value, whichever is less

3) Traded Goods - At cost

4) Consumable & Store Spare - At cost

1.5. Cash Flow statement:-

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents consist of cash, bank balances in current and short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less at the time of purchases.

1.6. Fixed Assets - Depreciation and Amortization

a. Tangible Assets:

Capitalized at cost of acquisition including other relevant cost for installation at located.

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses (other than ‘Freehold Land’), if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from discard/sale of tangible fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is discarded/ sold.

b. Depreciation and Amortization

Depreciation on tangible assets is provided on straight-line method (SLM) as per the useful life of the assets as specified in Schedule II to the Companies Act, 2013, except for the tangible assets as stated below. The same have been determined by the management based on techn ical estimates.

Steel Plant & Rolling Mill Plant & Machinery 15 Years

In the case of assets where impairment loss is recognized, the revised carrying amount is depreciated over the remaining estimated useful life of the asset. Based on management evaluation depreciation rates currently used fairly reflect its estimate of the useful lives and residual values of fixed assets.

Depreciation on additions/disposals of fixed assets during the year is provided on pro rate basis according to the period during which assets are put to use.

Intangible assets have been fully written off during the year due to revision of amortization period from ten years to four years.

c. Impairment of Assets:

At each balance sheet date, the management reviews the carrying amounts of its assets to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment. An impairment loss is recognized for the amount for which the asset’s carrying amount exceeds its recoverable amount being the higher of the assets net selling price and its value in use. Impairment loss is recognized in the Statement of Profit and Loss. Recoverable amount is the higher of value in use and realizable value. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset.

If, at the balance sheet date, there is indication that if previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

1.7. Foreign currency transactions:

The company is exposed to currency fluctuations on foreign currency transactions. Transactions denominated in foreign currency are recorded at the original rates of exchange in force/ notional determined exchange rates at the time transactions are affected. Exchange difference arising on foreign exchange transactions settled during the year is recognized in the Statement of profit and loss of the year.

In the case of forward contract, if any, difference between the forward rates and the exchange rates on the transaction dates is recognized as income or expenses over the lives of the related contracts. The Profit/Loss arising out of the cancellation or renewal of forward exchange contract is recorded as Inco me/ Expense for the period.

Monetary assets/ liabilities relating to foreign currency transaction are stated at exchange rate prevailing at the end of the year and exchange difference in respect thereof is charged to statement of Profit & Loss.

1.8. Employee Benefits:

Expenses and liabilities in respect of employee benefits are recorded in accordance with Accounting Standard (AS)-15- ‘Employee Benefits’.

i) Gratuity

The Company accounts for its gratuity liability, a defined retirement benefit plan covering eligibl e employees. The gratuity plan provides for a lump sum payment to employees at retirement, death, incapacitation or termination of the employment based on the respective employee’s salary and the tenure of the employment.

Liabilities with regard to a Gratuity plan are determined based on the actuarial valuation carried out by an independent actuary as at the Balance Sheet date. Actuarial gains and losses are recognized in full in the Statement of Profit and Loss in the period in which they occur.

ii) Pension

The management is of the opinion that the payment under Pension Act is not applicable to the Company.

iii) Contribution to Provident Funds

The company contributes to the employee’s provident fund maintained under the Employees Provident Fund Scheme of the Central Government and the same is charged to the Profit & Loss Account. The company has no obligation, other than the contribution payable to the provident fund.

iv) Other short term benefits

Expense in respect of other short term benefits is recognized on the basis of the amount paid or payable for the period during which services are rendered by the employee.

1.9. Borrowing cost:

Borrowing costs are recognized in the Statement of Profit and Loss except interest incurred on borrowings, specifically raised for projects are capitalized to the cost of the asset until such time that the asset is ready to be put to use for its intended purpose.

1.10. Taxation on Income

Tax expenses comprises of current tax, deferred tax, minimum alternative tax Current Tax

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. Advance taxes and provisions for current income taxes are presented in the balance sheet after off-settng advance taxes paid and TDS/TCS receivables.

Deferred Tax

Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years, to the extent that the timing differences are expected to crystallize.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. 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. In other situations, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

Minimum Alternative Tax

Minimum Alternate Tax (MAT) 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. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal Income Tax during the specified period.

1.11. Deferred revenue expenditures:- Other Expenditure:

Remaining expenditures specified under the Non-current assets to written off as per period are decided by the Management.

1.12. Earnings Per Share:-

Basic and Diluted Earnings per shares are calculated by dividing the net profit attributable to the ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.

The Company reports basic and diluted earnings per share in accordance with Accounting Standard issued by the Institute of Chartered Accountant of India. Basic earnings per share are computed by dividing the net profit for the year by the Weighted Average Number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit for the year by weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares except where results are anti-dilutive.

1.13. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for:

I. Possible obligations which will be confirmed only by future events not within the control of the Company or,

II. Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.


Mar 31, 2016

1. CORPORATE INFORMATION

M.D. Inducto Cast Limited ("The Company") was originally incorporated as Private limited Company on 16th September 2010 and having duly passed the necessary resolution on llIh May, 2015 in terms of Section 14 and other applicable provisions of the Companies Act, 2013, the constitution of company is changed to M.D,INDUCTO CAST LIMITED as per certificate dated 20th May, 2015. During the year. Company raised fund through Initial Public offer for 63,34,000 Equity Shares and Preferential or private placement for 37,03,704 Equity Shares . The shares of the company listed on Bombay stock exchange (SME) Platform as on 16th July2015. The company is engaged in the business of Manufacturing the Billets and TMT Bars,

2. Significant Accounting Policies:

2.1. Basis of preparation of financial Statements:

The financial statements are prepared under the historical cost convention, ongoing concern basis and all material respects with the Accounting Standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014- The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realization of incomes. The accounting policies adopted in the preparation of financial statements «re consistent with those of previous year,

2.2. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities and commitments at the end of the reporting period and results of operations during the reporting period. Although these estimate are based upon the management''s best knowledge of current events and actions. Actual results may differ from the estimates used in preparing the accompanying financial statements. Any changes in estimates are recognized prospectively.

2.3. Fixed Assets - Depreciation and Amortization

a. Tangible Assets:

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment tosses (other than ''Freehold Land''), if ,any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed - asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance, All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from discard/sale of tangible fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and 3re recognized in the statement of profit and loss when the asset is discarded/ sold.

b. Intangible Assets:

Intangible «sets arc recognized in accordance with the criteria laid Mown, in Standard IAS-26), whereas they are separately identifiable, measurable and the Company controls the future benefits arising out of them, intangible assets are stated at cost less amortization and impairment losses, if any.

Intangible assets are amortized on a straight line basis over the estimated useful economic life as decided by the management. The Company uses 3 rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use.

c. Depreciation and Amortization

Depreciation on tangible assets is provided on straight line method (SLM) as per the useful life of the assets as specified in Schedule II to the Companies Act. 2013, except for the tangible assets as stated below. The same have been determined by the management based on technical estimates.

- Steel Plant & Rolling Mill Plant & Machinery 15 Years in the case of assets where impairment loss is recognized, the revised carrying amount is depreciated over the remaining estimated useful life of the asset. Based on management evaluation depreciation rates currently used fairly reflect its estimate of the useful lives and residual values of fixed assets.

Depreciation on additions/disposals of fixed assets. during the year is provided on pro rate basis according to the period during which assets are put to use,

d, Impairment of Assets

At each balance sheet date, the management reviews the carrying amounts of its assets to determine whether there is any indication that those assets were impaired if any such indication exists, the recoverable amount of the asset is estimated ,in order to determine the extent of impairment An impairment loss is recognized for the amount for which the asset''s carrying amount exceeds its recoverable amount being the higher of the assets ne selling price and its value in use. Impairment loss is recognized in the Statement of Pro it and Loss Recoverable amount is the higher of value m use and realizable value, assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. [f at the balance sheet date, there is indication that if previously assessed impairment toss no longer exists, the recoverable amount Is reassessed and the asset is reflected at the recoverable amount.

2.4. Revenue Recognition:-

a Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the good have been transferred to the buyer, usually on delivery of the goods.

b Gross Revenue from operations comprises of sale of product and other operating income which also include Royalty (brand) income. ''Wet Revenue from operations'', Net of excise duty.

c. Sales are inclusive of excises duty but net of returns, rebates, vat and sales tax. Products returned are accounted for in the year of return.

d. Royalty (brand) income is recognized on accrual basis In accordance with the terms of the relevant agreement, if tiered is significant certainty as to its collectability.

e Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable, interest income on other is netted off from interest cost under the head "Interest cost on other (net)1’ in the Statement of Profit & Loss.

f The quantum of accruals in respect of claims receivable such as from insurance water charges and '' the like are accounted for on accrual basis to the extent there is certainty of ultimate realization. And such Income is included under the head "Other Income .

2.5. Borrowing Cost:

Borrowing costs are recognized in the Statement of Profit and Loss except interest incurred on borrowings, specifically raised for project are capitalized to the cost of the asset until such time t the asset is ready to be put to use for its intended purpose.

2.6. Inventories:

r Inventories are taken as verified, valued and certified by the management The company has been '' following the practice of accounting for the quantity of raw material and finished goods on the basis of the weight {in tones). The stock of raw materials and finished goods at the year-end are ascertained by reducing the quantity actually used and/ or sold from the quantity of raw materials purchased or finished goods produced respectively.

II. The inventories are valued as under:

1) Raw Material - At Cost . ,

2) Finished Goods - At cost or net realizable value, whichever is less

3) Consumable & Store Spare - At Cost

2.7. Foreign currency transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing at the date of the transaction.

Monetary foreign currency assets and liabilities are translated at the year-end exchange rates and resultant gains/losses of above foreign currency translation are recognized in the statement of profit & loss for the year except those covered by forward contracts if any, which are accounted for at the contracted rate representing the amount required to meet the liability.

Mon Monetary items, which are measured in terms of historical cost denominated in foreign currency, are reported using the exchange rate at the date of the transaction.

2.8. Cash Flow statement: -

Cash flows are reporting using indirect method, whereby profit before tax is adjusted for the effects transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments- The Cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents consist of cash, bank balances in current and short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less at the time of purchases.

2.9. Taxation

Tax expenses comprises of current tax and deferred tax.

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 income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. 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. In other situations, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

Minimum Alternative Tax

Minimum Alternate Tax (MAT) 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. In the year in which the MAT credit becomes eligible to be recognized as an asset, in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of

India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal Income Tax during the specified period,

2.10. Earnings Per Share-

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted Earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

2.11. Employee Benefits:

Expenses and liabilities in respect of employee benefits are recorded in accordance with Accounting Standard (AS)''15- ''Employee Benefits'',

i) Gratuity

The Company accounts for its gratuity liability, a defined retirement benefit plan covering eligible employees- The gratuity plan provides for a lump sum payment to employees at retirement, death, incapacitation or termination of the employment based on the respective employee''s salary and the tenure of the employment, liabilities with regard to a Gratuity plan are determined based on the actuarial valuation carried out by an independent actuary as at the Balance Sheet date. Actuarial gains and losses are recognized in full in the Statement of Profit and Loss in the period in which they occur.

ii) Pension

The management is also of the opinion that the payment under Pension Act is not applicable to the Company.

iii) Contribution to Provident Funds

The company contributes to the employee''s provident fund maintained under the Employees Provident Fund Scheme of the Central Government and the same is charged to the Profit & Loss Account. The company has no obligation, other than the contribution payable to the provident fund.

iv) Other short term benefits

Expense in respect of other short term benefits is recognized on the basis of the amount paid or payable for the period during which services are rendered by the employee.

2,12. DEFERRED REVENUE EXPENDITURES:

a) Preliminary Expenses:

Remaining balance has been written off during the year as per the requirement of the schedule III of the Companies Act, 2013.

b) Other Expenditure:

The public issue expenses are amortized adjusted against the Securities Premium Account as permissible under Section 52 of the Companies Act, 2013 to the extent any balance is available for utilization in the Securities Premium Account.

2.13. Provisions, Contingent Liabilities and Contingent Assets:

Provision are recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made.

Provisions (excluding retirement benefits) ore not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements.

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