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Accounting Policies of Ranjeev Alloys Ltd. Company

Mar 31, 2013

1. BASIC OF ACCOUNTING

The complete follows mercantile system of accounting and recognizes income & expenditure on accrual basis. The accounts are prepared on historical cost basis and are consistent with the generally accounting principles.

2. BASIC OF PRESENTATION ''

The structure of the accounts have been drawn in accordance with the schedule VI of the Companies Act, 1956.

3. FIXED ASSETS

The Fixed assets are stated at cost less accumulated depreciation thereon. The cost of an asset means the purchase price of an asset plus directly attributable expenses incurred for bringing the asset to the working conditions and financial cost relating to borrower funds attributable to the fixed assets up to the date of said asset put to use for commercial production. Depreciation on fixed assets has been provided on ''Straight Line'' method at the rates prescribed in Schedule XIV of the companies Act, 1956.

4. INVENTORIES

Traded Goods are valued at Cost price, if any.

5. EXCISE DUTY & VAT

Excise duty payable on finished products is accounted for on clearance of goods from the factory premises and VAT is payable on the sales of by the company.

6. GRATUITY PROVISION .

The provision for gratuity have not been made as the same are accounted for on payment basis.

7. PROVISIONS. CONTINGENT LIABILITES & CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as the 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 and further recognition of amount under this head is considered only when the same is converted into demands. Contingent assets are neither recognized nor disclosed in the financial statements.

8. BORROWING COST

To Capitalize the borrowing cost that are directly attributable to the acquisition or Construction of that Capital asset. Other borrowing Costs are recognized as an expense in the period in which they are incurred.

9. IMPAIRMENT OF ASSETS

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired, If any such indication exists, the company estimate, the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to winch the asset belongs is less than its carrying amount. The carrying amount is reduced to its recoverable amount. This reduction is indies an impairment loss and is recognized in the Profit & Loss account. If at the balance sheet date there is an indication that it a viciously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount. .


Mar 31, 2011

1. BASIC OF ACCOUNTING The company follows mercantile system of accounting and recognizes income & expenditure on accrual basis.The accounts are prepared on historical cost basis and are consistent with the generally accounting principles. 2. BASIC OF PRESENTATION The structure of the accounts have been drawn in accordance with the schedule VI of the Companies Act, 1956. 3. FIXED ASSETS The Fixed assets are stated at cost of acquisition less accumulated depriciation thereon.Cost of acquisition is inclusive of direct expenses pertaining to the assets and further also include re- installation & shifting expenses upto the data of re-start of commercial producation. Depreciation on fixed assets has been provided on straight line method at the rates prescribed in Schedule XIV of the companies Act, 1956 as amended. In case of addition/delations to fixed assets and fixed assets put to use for the first time during the year, depreciation has been provided pro-rate with respect to the month of addition/delation or when the assets was first put to use. 4. INVENTORIES Raw Material including Farro alloys is valued at cost price on FIFO basis stores & spares are valued at cost price. Finished goods, Runner & Riser S C.I. Moulds have been valued at cost or net realisable value whichever is less on FIFO basis. 5. SALE REALISATION Sales include sales of raw material purchased for re-sale, excluding sale of material meant for consumption but including excise duty consumption on finished products. 6. EXCISE DUTY Excise duty payable on finished products is accounted for on clearance of goods from the factory premises and VAT is accounted for on the sales of any type of goods 7. FOREIGN CURRENCY TRANSLATION Transaction in foreign currency are recorded by applying to the foreign currency amount at the exchange rate existing at the time of the transaction. Exchange difference arising on settlement of monetary items or on reporting at rates different from those at which they were recorded during the period at recognised in revenue, if any. 8. MISCELLANEOUS EXPENDITURE Preliminary Expenses are amortisad over a period of ten years from the year in which they are incured, Public Issue Expenses are amortised over a period of ten year from commencement of commerical production. 9. GRATUITY PROVISION The provision for gratuity have not been made as the same are accounted for on payment basis. 10. CONTINGENT LIABILITES Recognition of amount under this head is considered only when the same is converted into demands. 11. BORROWING COST To Capitalise the borrwoing cost that are directly attributable to the acquisition or Construction of that Capital asset. Other borrowing Costs are recognised as an expense in the period in which they are incurred. 12. TAXES ON INCOME Provisions for Taxation is made on the basis of the Taxable Profits Computed for the current accounting year in accordance with the Income Tax Act, 1961. Deferred Tax resulting from timing difference between book Profit & Tax profits is accounted for at the applicable rates of Taxes to the extent the timing differences are expected to crystalized in respect of Deferred Tax liabilities with reasonable certainty and in case of deferred Tax assets with virtual certainty that there would be adequate future Taxable income against whch deferred Tax assets can be realised. 13. Impairment of Assets The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset.If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less then its carrying amount. The .carrying amount is reduced to its recoverable amount.This reduction is treated as an impairment loss and is recognized in the Profit & Loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists.the recoverable amount is reassessed and the asset is reflected at the recoverable amount. 14. SEGMENT REPORTING The Company is angaged in the business of steel & Manufacturing which in context of Accounting standards 17 - Segment Report issued by the institute of Chartered Accountants of India is considered the only business segment so separate segment reporting is not necessary.


Mar 31, 2010

1. BASIC OF ACCOUNTING

The company follows mercantile system of accounting and recognizes income & expenditure on accrual basis.The accounts are prepared on historical cost basis and are consistent with the generally accounting principles.

2. BASIC OF PRESENTATION

The structure of the accounts have been drawn in accordance with the schedule VI of the Companies Act, 1956.

3. FIXED ASSETS

The Fixed assets are stated at cost of acquisition less accumulated depriciation thereon.Cost of acquisition is inclusive of direct expenses pertaining to the assets and further also include re- installation & shifting expenses upto the data of re-start of commercial producation. Depreciation on fixed assets has been provided on straight line method at the rates prescribed in Schedule XIV of the companies Act, 1956 as amended. In case of addition/delations to fixed assets and fixed assets put to use for the first time during the year, depreciation has been provided pro-rate with respect to the month of addition/delation or when the assets was first put to use.

4. INVENTORIES

Raw Material including Farro alloys is valued at cost price on FIFO basis stores & spares are valued at cost price. Finished goods, Runner & Riser S C.I. Moulds have been valued at cost or net realisable value whichever is less on FIFO basis.

5. SALE REALISATION

Sales include sales of raw material purchased for re-sale, excluding sale of material meant for consumption but including excise duty consumption on finished products.

6. EXCISE DUTY

Excise duty payable on finished products is accounted for on clearance of goods from the factory premises and VAT is accounted for on the sales of any type of goods

7. FOREIGN CURRENCY TRANSLATION

Transaction in foreign currency are recorded by applying to the foreign currency amount at the exchange rate existing at the time of the transaction. Exchange difference arising on settlement of monetary items or on reporting at rates different from those at which they were recorded during the period at recognised in revenue, if any.

8 . MISCELLANEOUS EXPENDITURE

Preliminary Expenses are amortisad over a period of ten years from the year in which they are incured, Public Issue Expenses are amortised over a period of ten year from commencement of commerical production.

9. GRATUITY PROVISION

The provision for gratuity have not been made as the same are accounted for on payment basis.

10. CONTINGENT LIABILITES

Recognition of amount under this head is considered only when the same is converted into demands.

11. BORROWING COST

To Capitalise the borrwoing cost that are directly attributable to the acquisition or Construction of that Capital asset. Other borrowing Costs are recognised as an expense in the period in which they are incurred.

12. TAXES ON INCOME

Provisions for Taxation is made on the basis of the Taxable Profits Computed for the current accounting year in accordance with the Income Tax Act, 1961. Deferred Tax resulting from timing difference between book Profit & Tax profits is accounted for at the applicable rates of Taxes to the extent the timing differences are expected to crystalized in respect of Deferred Tax liabilities with reasonable certainty and in case of deferred Tax assets with virtual certainty that there would be adequate future Taxable income against whch deferred Tax assets can be realised.

13. Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset.If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less then its carrying amount. The .carrying amount is reduced to its recoverable amount.This reduction is treated as an impairment loss and is recognized in the Profit & Loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists.the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14. SEGMENT REPORTING

The Company is angaged in the business of steel & Manufacturing which in context of Accounting standards 17 - "Segment Report" issued by the institute of Chartered Accountants of India is considered the only business segment so separate segment reporting is not necessary.

 
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