Mar 31, 2015
1.1 Basis of preparation of Financial Statements
a. The financial statements are prepared under the historical cost
convention on accrual basis of accounting to comply in all material
respects with mandatory accounting standard as notified by the
Companies(Accounting Standards) Rules, 2006 as amended ('the
Rules') and the relevant provisions of the Companies Act, 1956
('the Act').
b. Accounting policies have been consistently applied by the company
and the accounting policies not referred to otherwise, are in
conformity with Generally Accepted Accounting Principles (GAAP).
1.2 Fixed Assets and Depreciation
a. Fixed Assets & Capital work in Progress:
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses, if any. Cost includes all expenditure necessary to
bring the asset to its working condition for its intended use. Own
manufactured assets are capitalized inclusive of all direct costs and
attributable overhead.
Capital work-in-progress comprises of amount paid to acquire fixed
assets and the cost of fixed assets that are not yet ready for their
intended use as at the balance sheet date.
Assets held for disposal are stated at the lower of net book value and
the estimated net realizable value.
b. Financial costs incurred up to the date of commissioning of assets
are capitalised.
c. Depreciation has been provided as follows:
i) . Under WDV method on assets acquired up to 31.12.1985 at the then
prevailing rates.
ii) Under SLM method on assets acquired after 31.12.1985 and up to
15.12.1993 at the rates as originally prescribed in Schedule XIV to the
Companies Act,1956, and on assets acquired thereafter at the revised
rates as per Notification GSR 756(E) dated 16.12.1993.
iii) Depreciation on revaluation is adjusted against Revaluation
Reserve.
iv) Cost of Leasehold land is amortised over the lease period.
v) Plant and Machinery and Furniture and Fittings which cost are less
than Rs 5000/- each are depreciable at the rate of 100% in the year of
purchase.
1.3 Retirement and other employee benefits: Defined contribution to
provident fund and employee state insurance are charged to the profit
and loss account of the year when the contributions to the respective
funds are due. There are no other obligations other than contribution
payable to the respective statutory authorities. Retirement benefits in
the form of gratuity are considered as defined benefit obligation, and
are provided in the year of separation.(AS 15).
1.4 Inventories
Raw materials, Components, Stores and Spares and Work-in-Progress are
valued at cost. Finished goods are valued at cost or realizable value
whichever is less. The basis of determining cost for various categories
of inventories are as follows:
Raw Material, components, stores and spares At cost (Weighted Average)
Work-in-Progress
At Material cost plus Conversion cost on the basis of absorption
costing
Finished Goods
At material cost plus conversion cost on the basis of absorption
costing (including of excise Duty payable)
REVENUE RECOGNITION:
1.5 Sales
Sales comprises of sale of goods produced & purchased by the Company as
also sales effected as agents and sale of raw materials, and are gross
of duties. Consignment sales are accounted on receipt of consignment
sale note from the consignee.
1.6 Revenue Recognition
All income and expenditure are recognised on accrual basis except rates
& taxes, bonus on cash basis. Export benefits representing duty free
imports of earlier years are accounted in proportion to materials
consumed. The value of Advance Licence on hand at the end of the year
as certified by the management is incorporated in the books of
accounts.
1.7 Investments:
Long Term Investments are carried at cost less provision for diminution
in value other than temporary, if any. Current investments are valued
at lower of cost and fair value.
1.8 Contingent Liabilities
All liabilities have been provided for in the accounts except
liabilities of a contingent nature, which have been disclosed at their
estimated value in the Notes to the Financial Statements wherever
practicable.
During the Financial Year, the company's loans and liabilities with
the Banks were restructured under the "Corporate Debt Restructuring"
Scheme. As per the said scheme, the company repayment obligations were
deferred/ restructured. Further the Banks have provided certain
reliefs/ sacrifices / waivers by reducing the rate of interest from
applicable rates of each bank to 11% per annum. Interest on the
restructured loans have been provided for in the books at lowered rates
of interest. The Master restructuring Agreement entered into between
the company and the banks' provides a "Right of Recompense" on
the reliefs / sacrifices as per the CDR guidelines. The total value of
such sacrifices / reliefs/ waivers as on 31st March 2015 is Rs.6.46
Crores.
The Company has executed (During the year 2009-10 and 2011-12)
Corporate Guarantee in favour of the Shamrao Vithal Co-operative Bank
Limited, Mumbai for the loan taken by M/s. Chitrakoot Steel and Power
Pvt. Ltd., wholly owned subsidiary of the Company, for Rs. 25.00
Crores.
The Company received notices from Commercial Tax Department for
reversing the ineligible Input tax credit taken for Rs. 64,43,869/-,
Rs. 15,78,849/- and Rs. 50,19,598/- for the financial year 2011-12,
2012-13 and 2013-14 respectively. During the financial year 2014-15,
the Company has reclassified the ineligible ITC and grouped in current
asset, in the ledger under the account head VAT under protest and this
has been quantified in Form WW. However the management is of opinion
that the reversal of input tax credit need not be made in the Accounts
for the aforesaid years.
1.9 Cash and Cash Equivalents:
Cash and cash equivalents in the cash flow statement comprise cash at
bank and in hand and short-term investments with an original maturity
of three months or less.
1.10 Foreign Exchange Transactions:
All foreign currency transactions are recorded at the average exchange
rate prevailing during the transaction occurs. Outstanding balances of
foreign currency monetary items are reported using the period end
rates. Pursuant to the notification of the companies (Accounting
Standard) amendment Rules 2009 issued by the Ministry of Corporate
Affairs on March 31st, 2009 amending Accounting Standard-11 (AS-11),
the effect of changes in Foreign Exchange Rates (Revised 2003),
exchange difference relating to long term monetary items are dealt with
in the following manner.
Exchange difference relating to long term monetary items, arising
during the year, in so far as they relate to the acquisition of
depreciable capital asset are added to/deducted from the cost of the
assets and depreciated over the balance life of the asset.
In other cases, such difference are accumulated in the "Foreign
Currency Translation Difference Account" and amortised to the profit
and loss account over the balance life of the long term monetary item
but not beyond 31st March, 2015.
All other exchange difference are recognized as income or expenses in
the profit and loss account (discloses separately under the head
Exceptional items in the Schedule-VI, Part-ll of the Companies Act,
1956). Foreign exchange transactions are as follows:
During the year foreign exchange transaction towards Royalty, know-how,
professional fees & consultant fees were NIL. Hence not disclosed in
the notes on accounts.
Mar 31, 2014
1.1 Basis of preparation of Financial Statements
a. The financial statements are prepared under the historical cost
convention on accrual basis of accounting to comply in all material
respects with mandatory accounting standard as notified by the
Companies(Accounting Standards) Rules, 2006 as amended (''the Rules'')
and the relevant provisions of the Companies Act, 1956 (''the Act'').
b. Accounting policies have been consistently applied by the company
and the accounting policies not referred to otherwise, are in
conformity with Generally Accepted Accounting Principles (GAAP).
1.2 Fixed Assets and Depreciation
a. Fixed Assets & Capital work in Progress:
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses, if any. Cost includes all expenditure necessary to
bring the asset to its working condition for its intended use. Own
manufactured assets are capitalized inclusive of all direct costs and
attributable overhead.
Capital work-in-progress comprises of amount paid to acquire fixed
assets and the cost of fixed assets that are not yet ready for their
intended use as at the balance sheet date.
Assets held for disposal are stated at the lower of net book value and
the estimated net realizable value.
b. Financial costs incurred up to the date of commissioning of assets
are capitalised.
c. Depreciation has been provided as follows:
d. Under WDV method on assets acquired up to 31.12.1985 at the then
prevailing rates.
i) Under SLM method on assets acquired after 31.12.1985 and up to
15.12.1993 at the rates as originally prescribed in Schedule XIV to the
Companies Act,1956, and on assets acquired thereafter at the revised
rates as per Notification GSR 756(E) dated 16.12.1993.
ii) Depreciation on revaluation is adjusted against Revaluation
Reserve.
iii) Cost of Leasehold land is amortised over the lease period.
iv) Plant and Machinery and Furniture and Fittings which cost are less
than Rs 5000/- each are depreciable at the rate of 100% in the year of
purchase.
Depreciation
Type of asset Rate of Dep.
Land NIL
Factory buildings 3.34
Office premises 3.34
Plant and machinery:
Double shift 7.42
Triple Shift 10.34
Computer 16.21
Lab equipments 4.75
Office and other equipments 6.33
Vehicles 9.50
Amortisation
Type of assets Basis
Land Leasehold Period of lease
ERP software Straight line basis over a period of five years
1.3 Retirement and other employee benefits: Defined contribution to
provident fund and employee state insurance are charged to the profit
and loss account of the year when the contributions to the respective
funds are due. There are no other obligations other than contribution
payable to the respective statutory authorities. Retirement benefits in
the form of gratuity are considered as defined benefit obligation, and
are provided in the year of separation.
1.4 Inventories
Raw materials, Components, Stores and Spares and Work-in-Progress are
valued at cost. Finished goods are valued at cost or realizable value
whichever is less. The basis of determining cost for various categories
of inventories are as follows:
Raw Material, components, stores and spares
At cost (Weighted Average)
Work-in-Progress
At Material cost plus Conversion cost on the basis of absorption
costing
Finished Goods
At material cost plus conversion cost on the basis of absorption
costing (including of excise Duty payable)
REVENUE RECOGNITION:
1.5 Sales
Sales comprises of sale of goods produced & purchased by the Company as
also sales effected as agents and sale of raw materials, and are gross
of duties. Consignment sales are accounted on receipt of consignment
sale note from the consignee.
1.6 Revenue Recognition
All income and expenditure are recognised on accrual basis except rates
& taxes, bonus on cash basis. Export benefits representing duty free
imports of earlier years are accounted in proportion to materials
consumed. The value of Advance Licence on hand at the end of the year
as certified by the management is incorporated in the books of
accounts.
1.7 Investments:
Long Term Investments are carried at cost less provision for diminution
in value other than temporary, if any. Current investments are valued
at lower of cost and fair value.
1.8 Contingent Liabilities
All liabilities have been provided for in the accounts except
liabilities of a contingent nature, which have been disclosed at their
estimated value in the Notes to the Financial Statements wherever
practicable.
Transactions As on 31.03.2014 As on 31.03.2013
Guarantees Outstanding 62.00 159.48
FLC with Bank Nil Nil
Entry Tax 80.44 80.44
Excise Duty 9.96 9.96
The Company has executed (during the year 2009-10 and 2011-12)
Corporate Guarantee in favour of the Shamrao Vithal Co-operative Bank
Limited, Mumbai for the loan taken by M/s. Chitrakoot Steel and Power
Pvt. Ltd., wholly owned subsidiary of the Company, for Rs. 25.00 Crores
1.9 Cash and Cash Equivalents:
Cash and cash equivalents in the cash flow statement comprise cash at
bank and in hand and short-term investments with an original maturity
of three months or less.
1.10 Foreign Exchange Transactions:
All foreign currency transactions are recorded at the average exchange
rate prevailing during the transaction occurs. Outstanding balance of
foreign currency monetary items are reported using the period end
rates. Pursuant to the notification of the companies (Accounting
Standard) amendment Rules 2009 issued by the Ministry of Corporate
Affairs on March 31st, 2009 amending Accounting Standard-11 (AS-11),
the effect of changes in Foreign Exchange Rates (Revised 2003),
exchange difference relating to long term monetary items are dealt with
in the following manner:
Exchange difference relating to long term monetary items, arising
during the year, in so far as they relate to the acquisition of
depreciable capital asset are added to/deducted from the cost of the
assets and depreciated over the balance life of the asset.
In other cases, such difference are accumulated in the "Foreign
Currency Translation Difference Account" and amortised to the profit
and loss account over the balance life of the long term monetary item
but not beyond 31st March, 2012.
All other exchange difference are recognized as income or expenses in
the profit and loss account (discloses separately under the head
Exceptional items in the Schedule-VI, Part-II of the Companies Act,
1956). Foreign exchange transactions are as follows:
Transactions As on 31.03.2014 As on 31.03.2013
CIF Value of imports
(Raw materials) 6287.75 4706.65
Earnings in foreign
Exchange (FOB) 3620.88 3931.42
Exchange in Foreign currency
for other matters 6.80 28.43
Interest paid on $ Loan - 203.67
Loan Paid - 4086.70
Tangible Assets in Capital
Work-in-progress - 656.06
During the year foreign exchange transaction towards Royalty, know-how,
professional fees & consultant fees were NIL. Hence not disclosed in
the notes on accounts.
Mar 31, 2013
1.1 Basis of preparation of Financial Statements
a. The financial statements are prepared under the historical cost
convention on accrual basis of accounting to comply in all material
respects with mandatory accounting standard as notified by the
Companies (Accounting Standards) Rules, 2006 as amended (''the Rules'')
and the relevant provisions of the Companies Act, 1956 (''the Act'').
b. Accounting policies have been consistently applied the company and
the accounting policies not referred to otherwise, are in conformity
with Generally Accepted Accounting Principles (GAAP).
1.2 Fixed Assets and Depreciation
a. Fixed Assets and Capital work-in-Progress
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses, if any. Cost includes all expenditure necessary to
bring the asset to its working condition for its intended use. Own
manufactured assets are capitalized inclusive of all direct costs and
attributable overhead.
Capital work-in-progress comprises of advances paid to acquire fixed
assets and the cost of fixed assets that are not yet ready for their
intended use as at the balance sheet date.
Assets held for disposal are stated at the lower of net book value and
the estimated net realizable value.
b. Financial costs incurred up to the date of commissioning of assets
are capitalised.
c. Depreciation has been provided as follows:
i) Under WDV method on assets acquired up to 31.12.1985 at the then
prevailing rates.
ii) Under SLM method on assets acquired after 31.12.1985 and up to
15.12.1993 at the rates as originally prescribed in Schedule XIV to the
Companies Act,1956, and on assets acquired thereafter at the revised
rates as per Notification GSR 756(E) dated 16.12.1993.
iii) Depreciation on revaluation is adjusted against Revaluation
Reserve.
iv) Cost of Leasehold land is amortised over the lease period.
v) Plant and Machinery and Furniture and Fittings which cost are less
than Rs 5000/- each are depreciable at the rate of 100% in the year of
purchase.
1.3 Retirement and other employee benefits:
Defined contribution to provident fund and employee state insurance are
charged to the profit and loss account of the year when the
contributions to the respective funds are due. There are no other
obligations other than contribution payable to the respective statutory
authorities. Retirement benefits in the form of gratuity are considered
as defined benefit obligation, and are provided in the year of
separation.
1.4 Inventories
Raw materials, Components, Stores and Spares and Work-in-Progress are
valued at cost. Finished goods are valued at cost or realizable value
whichever is less. The basis of determining cost for various categories
of inventories are as follows:
Raw Material, components, stores and spares : At cost (Weighted
Average)
Work-in-Progress : At Material cost plus Conversion cost on the basis
of absorption costing
Finished Goods : At material cost plus conversion cost on the basis of
absorption costing (including of excise Duty payable)
1.5 Sales
Sales comprises of sale of goods produced & purchased by the Company as
also sales effected as agents and sale of raw materials, and are gross
of duties. Consignment sales is accounted on receipt of consignment
sale note from the consignee.
1.6 Revenue Recognition
All income and expenditure are recognised on accrual basis except rates
& taxes, bonus on cash basis. Export benefits representing duty free
imports of earlier years are accounted in proportion to materials
consumed. The value of Advance Licence on hand at the end of the year
as certified by the management is incorporated in the books of
accounts.
1.7 Investments
Long Term Investments are carried at cost less provision for diminution
in value other than temporary, if any. Current investments are valued
at lower of cost and fair value.
1.8 Contingent Liabilities
All liabilities have been provided for in the accounts except
liabilities of a contingent nature, which have been disclosed at their
estimated value in the Notes to the Accounts wherever practicable.
The Company has executed (during the year 2009-10 and 2011-12)
Corporate Guarantee in favour of the Shamrao Vithal Co-operative Bank
Limited, Mumbai for the loan taken by M/s. Chitrakoot Steel and Power
Pvt. Ltd., wholly owned subsidiary of the Company, for Rs.25.00 crores
1.9 Cash and Cash Equivalents:
Cash and cash equivalents in the cash flow statement comprise cash at
bank and in hand and short-term investments with an original maturity
of three months or less.
1.10 Foreign Exchange Transactions:
All foreign currency transactions are recorded at the average exchange
rate prevailing during the transaction occur. Outstanding balance of
foreign currency monetary items are reported using the period end
rates. Pursuant to the notification of the companies (Accounting
Standard) amendment Rules 2009 issued by the Ministry of Corporate
Affairs on March 31st, 2009 amending Accounting Standard-11(AS-11), the
effect of changes in Foreign Exchange Rates (Revised 2003), exchange
difference relating to long term monetary items are dealt with in the
following manner
Exchange difference relating to long term monetary items, arising
during the year, in so far as they relate to the acquisition of
depreciable capital asset are added to / deducted from the cost of the
assets and depreciated over the balance life of the asset.
In other cases, such difference are accumulated in the "Foreign
Currency Translation Difference Account" and amortised to the profit
and loss account over the balance life of the long term monetary item
but not beyond 31st March, 2013.
All other exchange difference are recognized as income or expenses in
the profit and loss account (discloses separately under the head
Exceptional items in the Schedule-VI, Part-II of the Companies Act,
1956). Foreign exchange transactions are as follows:
Mar 31, 2012
1.1 Basis of preparation of Financial Statements
a. The financial statements are prepared under the historical cost
convention on accrual basis of accounting to comply in all material
respects with mandatory accounting standard as notified by the
Companies(Accounting Standards) Rules, 2006 as amended ('the Rules')
and the relevant provisions of the Companies Act, 1956 ('the Act').
b. Accounting policies have been consistently applied by the company
and the accounting policies not referred to otherwise, are in
conformity with Generally Accepted Accounting Principles (GAAP).
1.2 Fixed Assets and Depreciation
a. Fixed Assets and Capital work-in Progress
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses, if any. Cost includes all expenditure necessary to
bring the asset to its working condition for its intended use. Own
manufactured assets are capitalized inclusive of all direct costs and
attributable overhead.
Capital work-in progress comprises of amount paid to acquire fixed
assets and the cost of fixed assets that are not yet ready for their
intended use as at the balance sheet date.
Assets held for disposal are stated at the lower of net book value and
the estimated net realizable value.
b. Financial costs incurred up to the date of commissioning of assets
are capitalised.
c. Depreciation has been provided as follows:
i) Under WDV method on assets acquired up to 31.12.1985 at the then
prevailing rates.
ii) Under SLM method on assets acquired after 31.12.1985 and up to
15.12.1993 at the rates as originally prescribed in Schedule XIV to the
Companies Act, 1956 and on assets acquired thereafter at the revised
rates as per Notification GSR 756(E) dated 16.12.1993.
iii) Depreciation on revaluation is adjusted against Revaluation
Reserve.
iv) Cost of Leasehold land is amortised over the lease period.
1.3 Retirement and other employee benefits:
Defined contribution to provident fund and employee state insurance are
charged to the profit and loss account of the year when the
contributions to the respective funds are due. There are no other
obligations other than contribution payable to the respective statutory
authorities. Retirement benefits in the form of gratuity are considered
as defined benefit obligation, and are provided in the year of
separation.
1.4 Inventories
Raw materials, Components, Stores and Spares and Work-in-Progress are
valued at cost. Finished goods are valued at cost or realizable value
whichever is less. The basis of determining cost for various categories
of inventories are as follows:
Raw Material,
components,
stores and
spares : At cost (Weighted Average)
Work-in-Progress : At Material cost plus Conversion cost on the
basis of absorption costing
Finished Goods : At material cost plus conversion cost on the
basis of absorption costing (including of
excise Duty payable)
1.5 Sales
Sales comprises of sale of goods produced & purchased by the Company as
also sales effected as agents and sale of raw materials, and are gross
of duties. Consignment sales is accounted on receipt of consignment
sale note from the consignee.
1.6 Revenue Recognition
All income and expenditure are recognised on accrual basis except rates
& taxes, bonus on cash basis. Export benefits representing duty free
imports of earlier years are accounted in proportion to materials
consumed. The value of Advance Licence on hand at the end of the year
as certified by the management is incorporated in the books of
accounts.
1.7 Investments
Long Term Investments are carried at cost less provision for diminution
in value other than temporary, if any.
Current investments are valued at lower of cost and fair value.
1.8 Contingent Liabilities
All liabilities have been provided for in the accounts except
liabilities of a contingent nature, which have been disclosed at their
estimated value in the Notes to the Financial Statements wherever
practicable.
On 31/03/2012 On 31/03/2011
Guarantees Outstanding 76.08 142.38
FLC with Bank Nil 4813.67
Entry Tax 80.44 80.44
Excise Duty 9.96 9.96
The Company has executed (during the year 2009-10 and 2011-12)
Corporate Guarantee in favour of the Shamrao Vithal Co-operative Bank
Limited, Mumbai for the loan taken by M/s. Chitrakoot Steel and Power
Pvt. Ltd., wholly owned subsidiary of the Company for Rs. 25.00
crores.
1.9 Cash and Cash Equivalents: Cash and cash equivalents in the cash
flow statement comprise cash at bank and in hand and short-term
investments with an original maturity of three months or less.
1.10 Foreign Exchange Transactions: All foreign currency transactions
are recorded at the average exchange rate prevailing during the
transaction occur. Outstanding balance of foreign currency monetary
items are reported using the period end rates. Pursuant to the
notification of the companies (Accounting Standard) amendment Rules
2009 issued by the Ministry of Corporate Affairs on March 31st ,2009
amending Accounting Standard-11(AS-11), the effect of changes in
Foreign Exchange Rates(Revised 2003), exchange difference relating to
long term monetary items are dealt with in the following manner.
Exchange difference relating to long term monetary items, arising
during the year, in so far as they relate to the acquisition of
depreciable capital asset are added to/deducted from the cost of the
assets and depreciated over the balance life of the asset.
In other cases, such difference are accumulated in the " Foreign
Currency Translation Difference Account" and amortised to the profit
and loss account over the balance life of the long term monetary item
but not beyond 31st March, 2012.
Mar 31, 2011
1.1 Basis of preparation of Financial Statements
a. The financial statements are prepared under the historical cost
convention on accrual basis of accounting to comply in all material
respects with mandatory accounting standard as notified by the
Companies(Accounting Standards) Rules, 2006 as amended (''the Rules'')
and the relevant provisions of the Companies Act, 1956 (''the Act'').
b. Accounting policies have been consistently applied by the company
and the accounting policies not referred to otherwise, are in
conformity with Generally Accepted Accounting Principles ( GAAP).
1.2 Fixed Assets and Depreciation
a. Fixed Assets:
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses, if any. Cost includes all expenditure necessary to
bring the asset to its working condition for its intended use. Own
manufactured assets are capitalized inclusive of all direct costs and
attributable overhead.
Capital work-in-progress comprises of advances paid to acquire fixed
assets and the cost of fixed assets that are not yet ready for their
intended use as at the balance sheet date.
Assets held for disposal are stated at the lower of net book value and
the estimated net realizable value.
b. Financial costs incurred up to the date of commissioning of assets
are capitalised.
c. Depreciation has been provided as follows:
i) Under WDV method on assets acquired up to 31.12.1985 at the then
prevailing rates.
ii) Under SLM method on assets acquired after 31.12.1985 and up to
15.12.1993 at the rates as originally prescribed in Schedule XIV to the
Companies Act,1956, and on assets acquired thereafter at the revised
rates as per Notification GSR 756(E) dated 16.12.1993.
iii) Depreciation on revaluation is adjusted against Revaluation
Reserve.
iv) Cost of Leasehold land is amortised over the lease period.
v) Plant and Machinery and Furniture and Fittings which cost less than
Rs 5000/- each are depreciable at the rate of 100% in the year of
purchase.
1.3 Retirement and other employee benefits: Defined contribution to
provident fund and employee state insurance are charged to the profit
and loss account of the year when the contributions to the respective
funds are due. There are no other obligations other than contribution
payable to the respective statutory authorities. Retirement benefits in
the form of gratuity are considered as defined benefit obligation, and
are provided in the year of separation.
1.4 Inventories
Raw materials, Components, Stores and Spares and Work-in-Progress are
valued at cost. Finished goods are valued at cost or realizable value
whichever is less. The basis of determining cost for various categories
of inventories are as follows:
Raw Material, components, stores and spares : At cost ( Weighted
Average)
Work-in-Progress : At Material cost plus Conversion cost on the basis
of absorption costing
Finished Goods : At material cost plus conversion cost on the basis of
absorption costing ( including of excise Duty payable)
1.5 Sales
Sales comprises of sale of goods produced & purchased by the Company as
also sales effected as agents and sale of raw materials, and are gross
of duties. Consignment sales is accounted on receipt of consignment
sale note from the consignee.
1.6 Revenue Recognition
All income and expenditure are recognised on accrual basis except rates
& taxes, bonus on cash basis. Export benefits representing duty free
imports of earlier years are accounted in proportion to materials
consumed. The value of Advance Licence on hand at the end of the year
as certified by the management is incorporated in the books of
accounts.
1.7 Investments
Long Term Investments are carried at cost less provision for diminution
in value other than temporary, if any. Current investments are valued
at lower of cost and fair value.
Mar 31, 2010
1.1 Basis of preparation of Financial Statements
a. The financial statements are prepared under the historical cost
convention on accrual basis of accounting to comply in all material
respects with mandatory accounting standard as notified by the
Companies (Accounting Standards) Rules,2006 as amended (the Rules)
and the relevant provisions of the Companies Act, 1956 ( the Act).
b. Accounting policies have been consistently applied by the company
and the accounting policies not referred to otherwise, are in
conformity with Generally Accepted Accounting Principles ( GAAP).
1.2 Fixed Assets and Depreciation
a. Fixed Assets:
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses, if any. Cost includes all expenditure necessary to
bring the asset to its working condition for its intended use. Own
manufactured assets are capitalized inclusive of all direct costs and
attributable overhead.
Capital work-in-progress comprises of advances paid to acquire fixed
assets and the cost of fixed assets that are not yet ready for their
intended use as at the balance sheet date.
Assets held for disposal are stated at the lower of net book value and
the estimated net realizable value.
b. Financial costs incurred up to the date of commissioning of assets
are capitalised.
c. Depreciation has been provided as follows:
i) Under WDV method on assets acquired up to 31.12.1985 at the then
prevailing rates.
ii) Under SLM method on assets acquired after 31.12.1985 and up to
15.12.1993 at the rates as originally prescribed in Schedule XIV to the
Companies Act, 1956, and on assets acquired thereafter at the revised
rates as per Notification GSR 756(E) dated 16.12.1993.
iii) Depreciation on revaluation is adjusted against Revaluation
Reserve. iv) Cost of Leasehold land is amortised over the lease
period.
v) Plant and Machinery and Furniture and Fittings which cost are less
than Rs 5000/- each are depreciable at the rate of 100% in the year of
purchase.
Schedules - (Continued)
1.3 Retirement and other employee benefits: Defined contribution io
provident fund and employee state insurance are charged to the profit
and loss account of the year when the contributions to the respective
funds are due. There are no other obligations other than contribution
payable to the respective statutory authorities. Retirement benefits in
the form of gratuity are considered as defined benefit obligation, and
are provided in the year of separation.
1.4 Inventories
Raw materials, Components, Stores and Spares and Work-in-Progress are
valued at cost. Finished goods are valued at cost or realizable value
whichever is less. The basis of determining cost for various categories
of inventories are as follows:
Raw Material, components, stores and spares : At cost ( Weighted
Average)
Work-in-Progress : At Material cost plus Conversion cost on the basis
of absorption costing
Finished Goods : At material cost plus conversion cost on the basis of
absorption costing (including of excise Duty payable)
1.5 Sales
Sales comprises of sale of goods produced & purchased by the Company as
also sales effected as agents and sale of raw materials, and are gross
of duties. Consignment sales is accounted on receipt of consignment
sale note from the consignee.
1.6 Revenue Recognition
All income and expenditure are recognised on accrual basis except rates
& taxes, bonus on cash basis. Export benefits representing duty free
imports of earlier years are accounted in proportion to materials
consumed. The value of Advance Licence on hand at the end of the year
as certified by the management is incorporated in the books of
accounts.
1.7 Investments:
Long Term Investments are carried at cost less provision for diminution
in value other than temporary, if any. Current investments are valued
at lower of cost and fair value.
1.8 Contingent Liabilities
All liabilities have been provided for in the accounts except
liabilities of a contingent nature, which have been disclosed at their
estimated value in the Notes to the Accounts wherever practicable.
The company has executed Corporate Guarantee in favour of The Shamrao
Vithal Co-operative Bank Limited, Mumbai for the loan taken by M/s.
Chitrakoot Steel & Power Pvt. Ltd., wholly owned subsidiary of the
Company, for Rs. 20.00 crores.
1.9 Cash and Cash Equivalents:
Cash and cash equivalents in the cash flow statement comprise cash at
bank and in hand and short-term investments with an original maturity
of three months or less.
1.10 Foreign Exchange Transactions:
All foreign currency transactions are recorded at the average exchange
rate prevelling during the transation occur. Outstanding balance of
foreign currency monetary items are reported using the period end
rates. Pursuant to the notification of the companies ( Accounting
Standard) amendment Rules 2009 issued by the Ministry of Corporate
Affairs on March 31st ,2009 amending Accounting Standard-11 (AS-11),
the effect of changes in Foreign Exchange Rates(Revised 2003), exchange
difference relating to long term monetary items are dealt with in the
following manner
Exchange difference relating to long term monetary items, arising
during the year, in so far as they relate to the acquisition of
depreciable capital asset are added to/deducted from the cost of the
assets and depreciated over the balance life of the asset.
In other cases, such difference are accumulated in the " Foreign
Currency Translation Difference Account" and amortised toûthe profit
and loss account over the balance life of the long term Monetary item
but not beyond 31st March, 2011.
All other exchange difference are recognized as income or expenses in
the profit and loss account (discloses separately under the head
Exceptional items in the Sch-VI, Part-ll of the Companies Act, 1956).
Foreign exchange transactions are as follows:
Mar 31, 2000
1.1 Basis of preparation of Financial statements
a. The accounts are prepared on historical cost convention and
complies with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India.
b. Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
1.2 Fixed Assets and Depreciation
a. Fixed Assets are stated at cost of acquisition or construction
including directly attributable cost of bringing the assets to its
working condition for the intended use less accumulated depreciation.
Indirect expenditure during construction period has been apportioned to
individual Fixed Assets in an equitable manner.
b. Financial costs incurred upto the date of commissioning of assets
are capitalised.
c. Depreciation has been provided as follows:
i) Under WDV method on assets acquired upto 31.12.1985 at the then
prevailing rates.
ii) Under SLM method on assets acquired after 31.12.1985 and upto
15.12.1993 at the rates as originally prescribed in Schedule XIV to the
Companies Act 1956, and on assets acquired thereafter at the revised
rates as per Notification GSR 756 (E) dated 16.12.1993.
iii) Depreciation on revaluation is adjusted against Revaluation
Reserve.
iv) Cost of Leasehold land is amortised over the lease period.
v) Plant and Machinery and Furniture and Fittings where the individual
value per item is less than Rs.5000 is written of during the year.
1.3 Treatment of retirement benefit
Liability in this regard is charged off to revenue in the year of
separation. Hence liability on this account has not been provided for
in the Statement of Accounts.
1.4 Inventories
Raw materials and Stores and Spares are valued at cost and Finished
Goods at cost or market price whichever is less. The cost is inclusive
of excise duties.
1.5 Sales
Sales comprises of sale of goods produced & purchased by the Company as
also sales effected as agents and are net of duties and taxes.
Consignment sales is accounted on receipt of consignment sale note from
the consignee.
1.6 Revenue Recognition
All income and expenditure are recognised on accrual basis. Export
benefits representing duty free imports of earlier years are accounted
in proportion to materials consumed. The value of Advanced Licence on
hand at the end of the year as certified by the management is
incorporated in the books of accounts.
1.7 Investments are valued and stated at cost
1.8 Contingent Liabilities
All liabilities have been provided for in the accounts except
liabilities of a contingent nature, which have been disclosed at their
estimated value in the Notes to the Accounts wherever practicable.
1.9 Preliminary (including expenses on expansion) / Public Issue
expenses are being written off over a period of ten years.
1.10 Profit/Loss on sale of raw materials remains adjusted in the
consumption thereof.
1.11 Foreign Exchange Transactions
All foreign currency transactions are recorded at the rates prevailing
on the date of the transaction. All exchange differences are recognised
as income/expense for the period.
9. Details of Secured loans
A. Loans from Banks secured by exclusive charge on land, buildings and
plant and machinery other than those specifically charged and
hypothecation of inventors and book debts and are guaranteed by the
Managing Director and two Directors of the Company.
B. Term Loan from Financial Institution is secured by assets purchased
under the loan and are guaranteed by the Managing Director and two
Directors of the Company.
C. Other loans are secured by Hire Purchase/Hypothecation Agreements
of vehicles and specific machinery and are guaranteed by the Managing
Director.
10. Other current liabilities included Rs.0.07 lacs due to Directors
(As at 31.03.99 Rs.0.36 lacs)
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article