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.