Mar 31, 2015
1. COMPANY'S OVERVIEW :-
Ahmedabad Steelcraft Limited ('The Company') was incorporated on
14-07-1972 vide Certificate of Incorporation No. L27109GJ1972PLC01
1500 under the Companies Act, 1956. The Company is engaged in the
business of Trading and Export of Steel Windows and Door Sections.
2. SYSTEM OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS :-
a) The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles (GAAP) to comply with the
applicable mandatory Accounting Standards read with Revised Schedule VI
and the relevant provisions of the Companies Act, 2013. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
financial statements are consistent with those followed in the previous
year, except wherever specified.
b) The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
c) The Company has ascertained its operating cycle as 12 months for the
purpose of current / non-current classification of assets and
liabilities.
d) Benefit on account of entitlements to import duty free material
under the "Focus Market Scheme" & other Export Incentives are accounted
for on Cash basis.
3. INVENTORIES:
There is no inventory of goods at the end of the year.
4. CASH AND CASH EQUIVALENTS :
Cash and cash equivalent comprises of cash on hand and balance with
Central Bank of India Cash Credit Hypothecation account, Central Bank
of India Group Gratuity account, Central Bank of India (Mumbai)
account, HDFC Bank Ltd Current account, HDFC Bank Ltd EPC account,
account and State Bank of India Bank (Odhav) account as on 31/03/2015.
5. DEPRECIATION :
Depreciation on tangible assets is provided on the straight-line method
over the useful lives of assets in accordance with Schedule II of the
Companies Act, 2013
6. FIXED ASSETS :
Fixed Assets are stated at cost inclusive of incidental and/or
installation expenses like freight, duties, levies and any directly
attributable cost of bringing the assets to their working condition for
intended use less accumulated depreciation.
7. REVENUE RECOGNITION
* Revenue from sale of goods is recognized on transfer of significant
risks and rewards of ownership in the goods to the buyer which is
generally at the time of dispatch to the customer. Sales are recorded
net of returns (if any), trade discounts, rebates, other pricing
discounts, vat / sales tax.
* Interest on Investments / loans is recognized on a time proportion
basis.
* Dividend Income on Investments is recognized when right to receive
the payment is established.
8. FOREIGN EXCHANGE TRANSACTION:
a) Foreign Exchange transactions are converted into Indian Rupees at
the rate of exchange prevailing on the date of transaction. Exchange
rate difference is charged to Statement of Profit & Loss on Settlement
of transactions during the year.
Unsettled transactions at the close of the year are considered taking
into account the exchange rate prevailing at the year end and
difference is charged to Statement of Profit & Loss.
b) The investment made in foreign Company Light work LLC in the form of
investment in shares and loans and advances made is considered as
Non-Integral operations. The loan has been translated at closing rate
of foreign exchange and the resulted exchange difference is transfer to
and accumulated in a foreign currency translation Reserve account. The
exchange difference on repayment of loan is accounted for and transfer
from foreign currency translation account to profit and loss account.
9. EMPLOYEE BENEFITS:
Gratuity paid to employee retrenched and other payments made to
employee on retrenchment are charged to Statement of Profit & Loss on
payment basis.
10. INVESTMENTS :
* Valuations of long term (non-current) quoted and unquoted investments
are stated at cost less provision, if any, for permanent diminution in
value. Current Investments are valued at cost as per consistent
practice of the Company.
* The Company has made investments in the capital of Partnership Firm
as Partner in the case of the following Partnership Firm.
Name of Limited Liability Partnership Profit/Loss Ratio
Aavkar Realty 46.00 %
Aavkar Projects (Ambavadi) 11.10 %
The Company has made investments in the capital of Limited Liability
Partnership (LLP) as Partner in the case of the following Limited
Liability Partnership (LLP).
Name of Partnership Firm Profit/Loss Ratio
Endor Properties LLP 6.22 %
Tesla Properties LLP 11.72 %
Viewport Properties LLP 2.92 %
Notes Relating to Investment in Lightworks LLC.
During the F.Y. 2014-15, there is neither any new investment /
conversion / sale made by the Company of Equity Shares (Common Share)
of US $ 1 each fully paid up of Light works LLC. Further, the Company
has also given loan to Light works LLC. Company has accounted interest
receivable from Light works LLC in books of account as per accounting
policies and requirement of accounting standard. Company has made total
investment of 7,30,697 US$ the details of which are as under:
Common shares 50% 4,87,847 $
Loan Given 2,42,850 $
7,30,697 $
During the year ending on 31-12-2014 light works LLC has incurred
losses and net worth of the Company is negative and there is less
possibility of future profit from the operation, hence management is of
opinion that there is permanent diminution in the value of Investment
in light works LLC. The Long Term (Non Current) unquoted investment in
shares of light works LLC is shown as Nominal Value at Re 1 each and
provision is made for permanent diminution in value of Investment in
accordance with the Accounting Standard-13.
11. PROVISION FOR TAXATION :
Tax expenses comprises of current tax and deferred tax:-
(i) CURRENT TAX:-
No Provision for taxation has been made as there is no tax liability in
accordance with the direct tax laws prevailing for the relevant
assessment years.
(ii) DEFERRED TAX
Deferred tax is recognized, subject to the consideration of prudence,
on timing difference, 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 of Rs.
4,32,565/- has been created as per Accounting Standard 22 "Accounting
of Tax on Income" issued by ICAI on timing difference as follow:-
Depreciation Provided in the Books Rs. 32,25,659
Depreciation allowable as per I.T. Act. Rs. 18,25,773
Timing Difference Rs. 13,99,886
12. EARNINGS PER SHARE
Basic earnings per share are computed using the weighted average number
of equity shares outstanding during the year. Diluted earnings per
share are computed using the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year, except
where the results would be anti-dilutive.
Earning per share (EPS), is calculate as under :
Particulars 31/03/2015 31/03/2014
Profit/(Loss) attributable to the
Shareholders (Rs.) (A) (2,23,37,609) 1,81,07,320
Basic/Weighted average number Of
Equity Shares outstanding during
the year (B) 40,92,000 40,92,000
Nominal Value of Equity Share (Rs.) 10/- 10/-
Basic/Diluted Earning per share (Rs.) (5.45) 4.43
13. RELATED PARTY TRANSACTIONS:-
Disclosure of transactions with Related Parties ,as required by
Accounting Standard 18-" Related Party Disclosures" as specified in the
Companies (Accounting Standard) Rules 2006 (as amended) has been set
out in a separate statement annexed to this note. Related parties as
defined under clause 3 of the Accounting Standard 18 have been
identified on the basis of representation made by the management and
information available with the Company.
14. GENERAL NOTES:
1. As regards the other Accounting Standards, they are statutorily
applicable to our Company i.e Ahmedabad Steelcraft Limited but as there
are no transactions inviting those Accounting Standards, no specific
disclosures on the same are made.
2. Previous year's figures have been regrouped / rearranged wherever
necessary to make them comparable with current year figures.
3. Figures have been rounded off to the nearest Rupee for the purpose
of presentation.
4. Debtors and Creditors balances appearing in the balance sheet are
subject to confirmation of respective parties.
5. Since there are no purchases from S.S.I. Units, there are no
outstanding creditors of S.S.I. Units.
6. Amount paid or payable to Auditors:-
As at 31-03-15 As at 31-03-14
i) Audit fees 1,14,000 1,12,360
ii) Tax Audit Fees 57,000 56,180
1,71,000 1,68,540
7. Value of Imports, Expenditure and earning in foreign currency:
As at 31-03-15 As at 31-03-14
i) CIF value of Imports Nil Nil
ii) Spare parts and Components Nil Nil
iii) Earning in Foreign Currency
FOB Value of Export 1,80,41,765 10,91,34,684
Interest Income Received Nil 10,86,399
From Lightworks LLC
iv) Expenditure in foreign Currency Nil Nil
Mar 31, 2014
1. COMPANY ''S OVERVIEW :-
Ahmedabad Steelcraft Limited (The Company'') was incorporated on
14-07-1972 vide Certificate of Incorporation No. L27109GJ1972PLC011500
under the Companies Act, 1956. The company is engaged in the business
of Trading and Export of Steel Windows and Door Sections.
2. SYSTEM OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS :-
a) The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles (GAAP) to comply with the
applicable mandatory Accounting Standards read with Revised Schedule VI
and the relevant provisions of the Companies Act, 1956 (as per Section
133 of the Companies Act, 2013 in terms of General Circular 15/2013
dated 13th September of the Ministry of Corporate Affairs). The
financial statements have been prepared on accrual basis under the
historical cost convention. The accounting policies adopted in the
preparation of financial statements are consistent with those followed
in the previous year, except wherever specified.
b) The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
c) The Company has ascertained its operating cycle as 12 months for the
purpose of current / non-current classification of assets and
liabilities.
d) Benefit on account of entitlements to import duty free material
under the "Focus Market Scheme" & other Export Incentives are accounted
for on Cash basis.
3. INVENTORIES :
There is no inventory of goods in transit. Inventory of Finished Goods
is valued at cost or market value whichever is lower. There is no
closing stock of Finished Goods as at 31.03.2014.
4. CASH AND CASH EQUIVALENTS :
Cash and cash equivalent comprises of cash on hand and balance with
Central Bank of India Cash Credit Hypothecation account, Central Bank
of India Group Gratuity account, Central Bank of India (Mumbai)
account, Central Bank of India (Pune) account, HDFC Bank Ltd Current
account, HDFC Bank Ltd EPC account, HDFC Bank Ltd EEFC account and
State Bank of India Bank (Odhav) account as on 31/03/2014.
5. DEPRECIATION :
Depreciation on the assets has been provided on straight line method at
the rates prescribed under Schedule XIV to the Companies Act, 1956.
6. FIXED ASSETS :
Fixed Assets are stated at cost inclusive of incidental and/or
installation expenses like freight, duties, levies and any directly
attributable cost of bringing the assets to their working condition for
intended use less accumulated depreciation.
7. REVENUE RECOGNITION
Revenue from sale of goods is recognized on transfer of significant
risks and rewards of ownership in the goods to the buyer which is
generally at the time of dispatch to the customer. Sales are recorded
net of returns (if any), trade discounts, rebates, other pricing
discounts, vat / sales tax.
Interest on Investments / loans is recognized on a time proportion
basis.
Dividend Income on Investments is recognized when right to receive the
payment is established.
8. FOREIGN EXCHANGE TRANSACTION:
a) Foreign Exchange transactions are converted into Indian Rupees at
the rate of exchange prevailing on the date of transaction. Exchange
rate difference is charged to Statement of Profit & Loss on final
payment of the liability. Unsettled transactions at the close of the
year are considered taking into account the exchange rate prevailing at
the year end and difference is charged to Statement of Profit & Loss.
b) Variation due to fluctuation in exchange rate as on the date of
Balance Sheet, the increase / decrease is accounted in respect of
Investment and Advance to foreign company is accounted for in the
Foreign Currency Transaction Reserve.
9. EMPLOYEE BENEFITS:
Gratuity paid to employee retrenched and other payments made to
employee on retrenchment are charged to Statement of Profit & Loss on
payment basis.
10. INVESTMENTS :
The Company has made investments in the capital of Partnership Firm as
Partner in the case of the following Partnership Firm.
Name of Partnership Firm Profit/Loss Ratio
Aavkar Realty 46.00 %
Aavkar Projects (Ambavadi) 11.10 %
Endor Properties LLP 6.22 %
Tesla Properties LLP 11.72 %
The Company has also contributed Rs. 25,00,000/- towards capital in
View Point Properties which has been shown as "Investment in the
Capital of Partnership Firm" in Note - I "Other Current Investments".
Notes Relating to Investment in Lightworks LLC. During the F.Y.
2013-14, there is neither any new investment / conversion / sale made
by the company of Equity Shares (Common
11. TAXATION :
Deferred tax is recognized, subject to the consideration of prudence,
on timing difference, 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.
13. RELATED PARTY TRANSACTIONS:-
Disclosure of transactions with Related Parties ,as required by
Accounting Standard 18-" Related Party Disclosures" as specified in the
Companies (Accounting Standard) Rules 2006 (as amended) has been set
out in a separate statement annexed to this note. Related parties as
defined under clause 3 of the Accounting Standard 18 have been
identified on the basis of representation made by the management and
information available with the company._
14. GENERAL NOTES:
As regards the other Accounting Standards, they are statutorily
applicable to our Company i.e Ahmedabad Steelcraft Limited but as there
are no transactions inviting those Accounting Standards, no specific
disclosures on the same are made. SCHEDULE FORMING PART OF ACCOUNTS AS
ON 31ST MARCH, 2014
Mar 31, 2013
1. SYSTEM OF ACCOUNTING :-
a) The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956, as adopted
consistently by the company, except for certain fixed assets which have
been revalued.
b) The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
c) Benefit on account of entitlements to import duty free material
under the "Duty Entitlement Passbook" scheme & other Export I ncentives
are accounted for on Cash basis.
2. FIXED ASSETS :
Fixed Assets are stated at cost inclusive of incidental and/or
installation expenses.
3. DEPRECIATION :
Depreciation on the assets has been provided on straight line method at
the rates prescribed under Schedule XIV to the Companies Act, 1956.
4. INVENTORIES :
There is no inventory of goods in transit. Inventory of Finished Goods
is valued at cost or market value whichever is lower. There is no
closing stock of Finished Goods as at 31.03.2013.
5. INVESTMENTS :
Valuation of long term (non-current) quoted investment are stated at
cost less provision, if any, for permanent diminution in value.
Unquoted long term (non-current) investment are valued at cost. Current
Investment are valued at cost as per consistent practice of the
Company.
6. FOREIGN EXCHANGE TRANSACTION:
a) Foreign Exchange transactions are converted into I ndian Rupees at
the rate of exchange prevailing on the date of transaction. Exchange
rate difference is charged to Statement of Profit & Loss on final
payment of the liability. Unsettled transaction at the close of the
year are considered taking into account the exchange rate prevailing at
the year end and difference is charged to Statement of Profit & Loss.
b) Variation due to fluctuation in exchange rate as on the date of
Balance Sheet, the increase / decrease is accounted in respect of I
nvestment and Advance to foreign company is accounted for in the
Foreign Currency Transaction Reserve.
c) The exchange rate difference so occurred in conversion of Equity
Shares & Preference Shares into Common shares has been duly accounted
for and transferred to Foreign Currency Translation Reserve.
7. EMPLOYEE BENEFITS :
Gratuity paid to employee retrenched charged to Statement of Profit &
Loss. Other payment made to employee on retrenchment of employees
charged to Statement of Profit & Loss on payment basis.
8. TAXATION :
Deferred tax liability of Rs. 2,32,108/- has been created as per
Accounting Standard 22 "Accounting of Tax on Income" issued by ICAI on
timing difference as follow..
Depreciation Provided Rs. 17,47,066
Depreciation allowable as per IT. Act. Rs. 24,98,223
Timing Difference Rs. 7,51,157
Mar 31, 2012
1. SYSTEM OF ACCOUNTING:-
a) The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956, as adopted
consistently by the com- pany, except for certain fixed assets which
have been revalued.
b) The Company generally follows mercantile system of accounting and
recognizes significant items of income and ex- penditure on accrual
basis.
c) Benefit on account of entitlements to import duty free material
under the "Duty Entitlement Passbook" scheme & other Export Incentives
are accounted for on Cash basis.
2. FIXED ASSETS :
Fixed Assets are stated at cost inclusive of incidental and/or
installation expenses. They are stated at revalued amount being fair
market value on the basis of valuation made by approved valuer. Surplus
on account of revaluation is credited to the revaluation reserve
account.
3. DEPRECIATION :
Depreciation on the assets has been provided on straight line method at
the rates prescribed under Schedule XIV to the Companies Act, 1956.
4. INVENTORIES :
There is no inventories of raw materials, goods in transit, consumable
stores, furnace oil and lubricants. Inventories of Finished Goods is
valued at cost or market value whichever is lower. There is no closing
stock of Finished Goods as at 31.03.2012.
5. INVESTMENTS :
Valuation of long term (non-current) quoted investment are stated at
cost less provision, if any, for permanent diminution in value.
Unquoted long term (non-current) investment are valued at cost. Current
Investment are valued at cost as per consistent practice of the
Company.
6. FOREIGN EXCHANGE TRANSACTION:
a) Foreign Exchange transactions are converted into Indian Rupees at
the rate of exchange prevailing on the date of transaction. Exchange
rate difference is charged to Statement of Profit & Loss on final
payment of the liability. Unsettled transaction at the close of the
year are considered taking into account the exchange rate prevailing at
the year end and diff. is charged to Statement of Profit & Loss.
b) Variation due to fluctuation in exchange rate as on the date of
Balance Sheet, the increase / decrease is accounted in respect of
Investment and Advance to foreign company is accounted for in the
Foreign Currency Transaction Reserve.
7. EMPLOYEE BENEFITS :
Gratuity paid to employee retrenched charged to Statement of Profit &
Loss. Other payment made to employee on retrenchment of employees
charged to Statement of Profit & Loss on payment basis.
8. TAXATION :
Deffered tax liability of Rs.3,55,955/- has been created as per
Accounting Standard 22 "Accounting of Tax on I ncome" issued by
ICAI on timing difference as follow.
Mar 31, 2011
1. SYSTEM OF ACCOUNTING :-
a) The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956, as adopted
consistently by the company, except for certain fixed assets which have
been revalued.
b) The Company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
c) Benefit on account of entitlements to import duty free material
under the "Duty Entitlement Passbook" scheme & other Export Incentives
are accounted for on Cash basis which was hither to accounted for on
accrual basis.
2. FIXED ASSETS:
Fixed Assets are stated at cost inclusive of incidental and/or
installation expenses. They are stated at revalued amount being fair
market value on the basis of valuation made by approved valuer. Surplus
on account of revaluation is credited to the revaluation reserve
account.
3. DEPRECIATION:
Depreciation on the assets has been provided on straight line method at
the rates prescribed under Schedule XIV to the Companies Act, 1956.
4. INVENTORIES:
There is no inventories of raw materials, goods in transit, consumable
stores, furnace oil and lubricants. Inventories of Finished Goods is
valued at cost or market value whichever is lower. There is no closing
stock of Finished Goods as at 31.03.2011.
5. INVESTMENTS:
Valuation of long term quoted investment are stated at cost less
provision, if any. for permanent diminution in value. Unquoted long
term investment are valued at cost. Current Investment are valued at
cost as per consistent practice of the Company.
6. FOREIGN EXCHANGE TRANSACTION:
a) Foreign Exchange transactions are converted into Indian Rupees at
the rate of exchange prevailing on the date of transaction. Exchange
rate difference is charged to Profit & Loss A/c on final payment of the
liability. Unsettled transaction at the close of the year are
considered taking into account the exchange rate prevailing at the year
end and difference is charged to Profit & Loss Account.
b) Variation due to fluctuation in exchange rate as on the date of
Balance Sheet, the increase / decrease is accounted in respect of
Investment and Advance to foreign company is accounted for in the
Foreign Currency Translation Reserve.
7, EMPLOYEE BENEFITS:
Gratuity paid to employee retrenched charged to Profit & Loss Account.
Other payment made to employee on retrenchment of employees charged to
Profit & Loss Account on payment basis.
Mar 31, 2010
1. SYSTEM OF ACCOUNTING :
(a) The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act. 1956, as adopted
consistently by the company, except for certain fixed assets which have
been revalued.
(b)The Company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
(c) Benefit on account of entitlements to import duty free material
under the "Duty Entitlement Pass book" scheme is accounted for on
accrual basis. Other Export incentives are also accounted for on
accrual basis.
2. FIXED ASSETS:
Fixed Assets are stated at cost inclusive of incidental and/or
installation expenses. They are stated at revalued amount being fair
market value on the basis of valuation made by approved valuer, Surplus
on account of revaluation is credited to the revaluation reserve
account.
3. DEPRECIATION :
Depreciation on the Assets has been provided on straight line method at
the rates prescribed under Schedule XIV to the Companies Act. 1956.
4. INVENTORIES :
There is no inventory of raw materials, consumable stores, furnace oil
and lubricants. Inventories of Finished goods is valued at cost or
market value whichever is lower.
5. INVESTMENTS :
Valuation of long term quoted investment are stated at cost less
provision, if any, for permanent diminu- tion in value. Unquoted long
term investment are valued at cost. Current Investment are valued at
cost as per consistent practice of the Company.
6. FOREIGN EXCHANGE TRANSACTION :
(a) Foreign Exchange transactions are converted into Indian Rupees at
the rate of exchange prevailing on the date of transaction. Exchange
rate difference is charged to Profit & Loss A/c on final payment of the
liability. Unsettled transaction at the close of the year are
considered taking into account the exchange rate prevailing at the year
end and diff. is charged to Profit & Loss Account.
(b) Variation due to fluctuation in exchange rate as on the date of
balance sheet, the increase/decrease is accounted in respect of
Investment and Advances to foreign company is accounted for in the
foreign currency transaction reseerve.
7. EMPLOYEE BENEFITS :
Gratuity paid to employee retrenched charged to profit & Loss Account.
Other payment made to employee on retrenchment of employees charged to
Profit & Loss Account on payment basis.
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