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Accounting Policies of Rajasthan Tube Manufacturing Company Ltd. Company

Mar 31, 2015

(A) .BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The accounts are prepared under the historical cost convention and on the basis of a going on concern and on the accrual system of accounting.

(B) .USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made 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/ materialised.

(C) FIXED ASSETS AND DEPRECIATION

Fixed Assets are stated at cost and amount added/adjusted on revaluation less Accumulated depreciation in the books of account. The company capitalized all costs incidental to acquisition and installation of fixed assets.

Depreciation on fixed assets is charged on straight line method except on GI Plant and Building which have commenced commercial production w.e.f. 16th February, 1996, and vehicles purchased after 01-04-1998 depreciation has been provided on written down value method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013

(D) VALUATION OF INVENTORIES :

Inventories are valued as under :

(a) Stores : At cost.

(b) Loose tools : At cost.

(c) Raw materials : At cost (FIFO)

(d) Stock in process : At estimated cost

(e) Finished goods : At lower of cost or net realizable value.

As per the consistent practice of the company, while valuing stocks, the relative impact/incidence of manufacturing, administrative and financial expenses has been considered. Cost includes estimated apportioned overheads. Finished goods lying in factory premise are valued inclusive of excise duty. Goods sent on Consignment held in stock have been valued at the Invoice Price. Raw material are valued on FIFO basis except Zinc which was valued on average cost basis.

(E) SALES

Sales are inclusive of conversion sale net of return, excise duty, rebate, claims, Freight and discount etc. Consignment Sales are recognized on receipt of

statement of account from the Agent. Debit Note/ Credit Note Pertaining to transaction with Govt./Semi-Govt. Organisation are debited and credited on the date of receipt of the same.

(F) EXCISE DUTY

Excise duty is accounted for at the time of removal of the goods.

(G) INVESTMENT

Investments are valued at cost.

(H) RETIREMENT BENEFITS

Provision for gratuity has been made on the basis of actuarial valuation in the accounts in respect of employees who has completed qualifying period of service.

(I) DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the assets can be realized in future.

(J) CONTINGENT LIABILITIES:

Contingent liabilities are not provided for in the accounts and are separately shown in the notes to the accounts.


Mar 31, 2014

(A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accounts are prepared under the historical cost convention and on the basis of a going on concern and on the accrual system of accounting.

(B) USE OF ESTIMATES :

The preparation of financial statements requires estimates and assumptions to be made 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/materialised.

(C) FIXED ASSETS AND DEPRECIATION

Fixed Assets are stated at cost and amount added/adjusted on revaluation less Accumulated depreciation in the books of account. The company capitalised all costs incidental to acquisition and installation of fixed assets. Depreciation on fixed assets is charged on straight line method at the rates prescribed in Schedule XIV of the Companies Act,1956 as amended by circular No.1/12/92/CLV/dated 16.12.93 except on GI Plant and Building which have commenced commercial production w.e.f. 16th February,1996, and vehicals purchased after 01-04-1998 depreciation has been provided on written down value method at the rates prescribed in Schedule XIV of the Company Act,1956.

The amount of Depreciation on increase due to revaluation is being directly transferred to General Reserve from Revaluation Reserve.

(D) VALUATION OF INVENTORIES :

Inventories are valued as under :

(a) Stores : At cost.

(b) Loose tools : At cost.

(c) Raw materials : At cost (FIFO)

(d) Stock in process : At estimated cost

(e) Finished goods : At lower of cost or net realizable value.

As per the consistent practice of the company, while valuing stocks, the relative impact/incidence of manufacturing, administrative and financial expenses has been considered. Cost includes estimated apportioned overheads. Finished goods lying in factory premise are valued inclusive of excise duty. Goods sent on Consignment held in stock has been valued at the Invoice Price. Raw material are valued on FIFO basis except Zinc which was valued on average cost basis.

(E) SALES

Sales are inclusive of conversion sale net of return, excise duty, rebate, claims, Freight and discount etc. Consignment Sales are recognised on receipt of statement of account from the Agent. Debit Note/ Credit Note Pertaining to transaction with Govt./Semi-Govt. Organisation are debited and credited on the date of receipt of the same.

(F) EXCISE DUTY

Excise duty is accounted for at the time of removal of the goods.

(G) INVESTMENT

Investment are valued at cost.

(H) RETIREMENT BENEFITS

Provision for gratuity has been made on the basis of actuarial valuation in the accounts in respect of employees who has completed qualifying period of service.

(I).DEFERRED TAX :

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realized in future.

(J) CONTINGENT LIABILITIES :

Contingent liabilities are not provided for in the accounts and are separately shown in the notes to the accounts.


Mar 31, 2013

(A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accounts are prepared under the historical cost convention and on the basis of a going on concern and on the accrual system of accounting.

(B) USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made 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/materialised.

(C) FIXED ASSETS AND DEPRECIATION:

Fixed Assets are stated at cost and amount added/adjusted on revaluation less i Accumulated depreciation in the books of account.The company capitalised all I costs incidental to acquisition and installation of fixed assets. Depreciation on fixed assets is charged on straight line method at the rates prescribed in Schedule XIV of i the Companies Act,1956 as amended by circular No.1/12/92/CLV/dated 16.12.93 j except on Gl Plant and Buiiding which have commenced commercial production w.e.f. 16th Februarys 996,and vehicals purchased after 01-04-1998 depreciation has been provided on written down value method at the rates prescribed in Schedule XIV of the Company Act,1956.

The amount of Depreciation on increase due to revaluation is being directly transferred to General Reserve from Revaluation Reserve.

(D) VALUATION OF INVENTORIES:

Inventories are valued as under:

(a) Stores : At cost.

(b) Loose tools : At cost.

(c) Raw materials : At cost (FIFO)

d) Stock in process : At estimated cost

(e) Finished goods : At lowerofcostornetrealizablevalue.

As per the consistent practice of the company, while valuing stocks, the relative impact/ incidence of manufacturing, administrative and financial expenses has been considered. Cost includes estimated apportioned overheads. Finished goods lying in factory premise are valued inclusive of excise duty.Goods sent on Consignment held in stock has been valued at the Invoice Price. Raw material are valued on FIFO basis except Zinc which was valued on average cost basis.

(E) SALES

Sales are inclusive of conversion sale net of return, excise duty, re bate, claims. Freight and discount etc. Consignment Sales are recognised on receipt of statement of account from the Agent. Debit Note/ Credit Note Pertaining to transaction with Govt./Semi-Govt. Organisation are debited and credited on the date of receipt of the same.

(F) EXCISE DUTY

Excise duty is accounted for at the time of removal of the goods.

(G) INVESTMENT Investment are valued at cost.

(H) RETIREMENT BENEFITS

Provision for gratuity has been made on the basis of actuarial valuation in the accounts in respect of employees who has completed qualifying period of service.

(I) DEFERREDTAX:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realized in future.

(J) CONTINGENT LIABILITIES:

Contingent liabilities are not provided for in the accounts and are separately shown in the notes to the accounts.


Mar 31, 2012

(A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accounts are prepared under the historical cost convention and on the basis of a going on concern and on the accrual system of accounting.

(B) USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made 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/materialised.

(C) FIXED ASSETS AND DEPRECIATION:

Fixed Assets are stated at cost and amount added/adjusted on revaluation less Accumulated depreciation in the books of account.The company capitalised all costs incidental to acquisition and installation of fixed assets. Depreciation on fixed assets is charged on straight line method at the rates prescribed in Schedule XIV of the Companies Act,1956 as amended bycircular No.l/12/92/CLV/dated 16.12.93 except on Gl Plant and Building which have commenced commercial production w.e.f. 16th February,1996, and vehicals purchased after 01-04-1998 depreciation has been provided on written down value method at the rates prescribed in Schedule XIV of the Company Act, 1956.

The amount of Depreciation oh increase due to revaluation is being directly transferred to General Reserve from Revaluation Reserve.

(D) VALUATION OF INVENTORIES:

Inventories are valued as under:

(a) Stores : At cost.

(b) Loose tools : At cost.

(c) Raw materials : At cost (FIFO)

(d) Stock in process : At estimated cost

(e) Finished goods : At lower of cost or net realizable value.

As per the consistent practice of the company, while valuing stocks, the relative impact/ incidence of manufacturing, administrative and financial expenses has been considered. Cost includes estimated apportioned overheads. Finished goods lying in factory premise are valued inclusive of excise duty. Goods sent on Consignment held in stock has been valued at the Invoice Price. Raw material are valued on FIFO basis except Zinc which was valued on average cost basis.

(E) SALES

Sales are inclusive of conversion sale net of return, excise duty, rebate, claims, Freight and discount etc. Consignment Sales are recognised on receipt of statement of account from the Agent.

(F) EXCISE DUTY

Excise duty is accounted for at the time of removal of the goods.

(G) INVESTMENT Investment are valued at cost.

(H) RETIREMENT BENEFITS

Provision for gratuity has been made on the basis of actuarial valuation in the accounts in respect of employees who has completed qualifying period of service.

(I) DEFERRED TAX:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realized in future.

(J) CONTINGENT LIABILITIES:

Contingent liabilities are not provided for in the accounts and are separately shown in the notes to the accounts.


Mar 31, 2010

(1) CONVENTION

The accounts are prepared under the historical cost convention and on the basis of a going o.n concern and on the accrual system of accounting.

(2) FIXED ASSETS AND DEPRECIATION:

Fixed Assets are stated at cost and amount added/adjusted on revaluation less accumulated depreciation in the books of account. The company capitalises all costs incidental to acquisition and installation of fixed assets.

Depreciation on fixed assets is charged on straight line method at the rates prescribed in Schedule XIV of the Companies Act,1956 as amended by circular No. 1 /12/92/CLV/ dated 16.12.93 except on Gl Plant and BuiJding which have commenced commercial production w.e.f. 16th Februarys 996, and vehicals purchased after 01-04-1998 depreciation has been provided on written down value method at the rates prescribed in Schedule XIV of the Company Act,1956.

The amount of Depreciation on increase due to revaluation is being directly transferred to General Reserve from Revaluation Reserve.

(3) VALUATION OF INVENTORIES:

Inventories are valued as under:

(a) Stores : At cost.

(b) Loose tools : At cost.

(c) Raw materials : At cost (FIFO)

(d) Stock in process ; At estimated cost

(e) Finished goods At lower of cost or net realisable value.

As per the consistent practice of the company, while valuing stocks, the relative impact/incidence of manufacturing, administrative and financial expenses has been considered. Cost includes estimated apportioned overheads. Finished goods lying in factory premise are valued inclusive of excise duty.Goods sent on Consignment held in stock has been valued at the Invoice Price. Raw material are valued on FIFO basis except Zinc which was valued on average cost basis.

(4) SALES

Sales are inclusive of conversion sale net of return, excise duty, rebate, claims, Freight and discount etcConsignment Sales are recognised on receipt of statement of account from the Agent.

(5) EXCISE DUTY

Excise duty is accounted for at the time of removal of the goods.

(6) INVESTMENT

Investment are valued at cost.

(7) RETIREMENT BENIFITS:

Provision for gratuity has been made on the basis of actuarial valuation in the accounts in respect of employees who has completed qualifying period of Service.

(8) DEFERRED TAX:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is certainty that the assets can be realised in future.

(9) CONTINGENT LIABILITIES:

Contingent liabilities are not provided for in the accounts and areseparately shown in the notes to the accounts.

 
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