Mar 31, 2015
A. Accounting Convention
The accounts are prepared on accrual basis under the historical cost
convention in accordance with the provisions of the Companies Act 2013
('Act') and mandatory accounting standards as prescribed under section
133 of the Act read with Rule, 7 of the Companies (Accounts) Rules 2014
except otherwise stated.
All assets and liabilities have been classified as current or
non-current as per the company's normal operating cycle and other
criteria set out in the Schedule-Ill to the Companies Act, 2013 based
on the time taken between the acquisition of the assets for processing
and their realisation in cash and cash equivalents and the nature of
other receivables, the company expects its operating cycle as 12 months
for the purpose of current and non-current classification of assets and
liabilities.
B. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. The cost
represents the cost of acquisition inclusive of duties & taxes which
are not recoverable, incidental expenses, erection / commissioning
expenses and interest etc. upto the date the assets is put to use.
Software expected to provide future enduring economic benefits is
stated at cost less amortization. All upgradation / enhancements are
charged off as revenue expenditure unless they bring significant
additional benefits.
C. Depreciation/Amortisation
i) Depreciation on tangible assets is provided on the straight line
method over the useful lifes of assets as specified in the schedule II
to the Companies Act 2013.
ii) Depreciation on fixed assets added / disposed off during the year
is provided on prorata basis.
iii) Assets having useful life of less than 12 months are fully charged
to revenue in the year of purchase.
iv) Intangible Assets -
Computer Software is normally amortised over its useful life of 3 years
as estimated by the management. Computer Software acquired but not
found suitable is fully amortised in the year of acquisition. Licences
representing right to use are amortised over a period of 3 years.
D. Impairment
Cash generating units/assets are assessed for possible impairment at
each Balance Sheet date based on external and internal sources of
information. Impairment losses, if, any are recognised as an expenses
in statement of Protit and Loss.
E. Investments
Long term investments are carried at cost less provisions for permanent
diminution in value of such investments.
F. Inventories
i) Raw material, Consumable stores, Spares, Power & Fuels and Packing
Materials are valued at cost on FIFO basis. Inventories of
Rejected/Scrapped finished goods are treated as raw materials and
valued at current Market Price.
ii) Finished goods are valued at cost or net realisable value whichever
is lower. Cost is determined on average cost basis including
proportionate fixed manufacturing overheads based on actual capacity.
G. Foreign Currency Transaction (other than for Fixed Assets)
Export Sales in Foreign Currency are accounted at the Exchange rates
prevailing on the date of negotiation of export documents by bank or at
the exchange rates under the related forward exchange contracts.
Receivable & Payables not covered by forward exchange contracts are
translated at year end exchange rates or at the amounts which is likely
to be realised from and the gains / losses so determined and also the
realised exchange gains/ losses are recognised in the Statement of
Protit and Loss.
H. Cenvat
Central Excise Duty and Service Tax credit on purchase of Raw
Materials, Consumables and Capital Goods and on services received are
deducted from the cost of such materials, consumables, capital goods
and services.
I. Value Added Tax
Input tax credit on purchase of Raw Materials, Consumables and Capital
Goods are deducted from the cost of such materials and capital goods.
J. Export Benefit
Export Incentives which are in the nature of post realisation benefit
are recognised on the basis of the claim made till the date of
financial statements are approved and to the extent of certainty of
collection and export incentives which are in the nature of pre
realisation benefit recognised in the year of export irrespective of
actual realisation.
K. Gratuity & Encashment of Leave
The Gratuity and Encashment of Leave are provided on Actuarial
Valuation as required under AS-15.
L. Bonus
Bonus is provided for on the basis of liability incurred.
M. Taxes on Income
In case of the Company, provision for tax is made for current and
deferred taxes. Current Tax is provided on the taxable income under the
applicable tax laws and tax rates. Deferred tax assets and liabilities
arising on account of timing differences, which are capable of reversal
in subsequent period are recognised under the tax laws and tax rates
which have been or subsequently enacted.
Deferred tax assets are recognized only to the extent that there is a
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets will be realized. In
case of carry forward of unabsorbed depreciation and tax losses,
deferred tax assets are recognized only if there is "virtual
certainity" that such deferred tax assets can be realised against
future taxable profits.
N. Interest and Finance Charges
Interest and Finance Charges charged to Statement of Profit & Loss
include interest and bank charges on bank borrowings, short term and
long term and discounting of inland, foreign L/Cs including those in
favour of bankers. Interest on negotiation of Purchases/Sale documents
are charged to revenue account on the basis of recognition of
Purchases/Sale. Interest attributable to qualifying assets only in
specific borrowing cases are capitalised as cost of assets.
O. Purchases
Purchases are inclusive of carriage charged by the suppliers in their
invoices.
P. Segment Reporting Policies
The Company is engaged in the manufacture of Castings & M.S. products
which are subject to the same risk & returns and hence there is one
primary segment. The analysis of geographical segments is based on the
areas in which the Company operates.
Q. Subsidies
Government subsidies are accounted when there is no reasonable doubt of
collection.
Mar 31, 2014
A. Accounting Convention
The accounts are prepared on accrual basis under the historical cost
convention in accordance with the provisions of the Companies Act, 1956
and mandatory accounting standards issued by the Companies Accounting
Standards Rules, 2006 except otherwise stated.
All assets and liabilities have been classified as current or non-
current as per the Company''s normal operating cycle and other criteria
set out in the Schedule-VI to the Companies Act, 1956 based on the time
taken between the acquisition of the assets for processing and their
realisation in cash and cash equivalents and the nature of other
receivables, the company expects its operating cycle as 12 months for
the purpose of current and non- current classification of assets and
liabilities.
B. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. The cost
represents the cost of acquisition inclusive of duties & taxes which
are not recoverable, incidental expenses, erection / commissioning
expenses and interest etc. upto the date the assets is put to use.
Software expected to provide future enduring economic benefits is
stated at cost less amortization. All upgradation / enhancements are
charged off as revenue expenditure unless they bring significant
additional benefits.
C. Depreciation/Amortisation
i) Depreciation is provided at the rates specified in the Schedule XIV
to the Companies Act, 1956, in respect of the fixed assets at the
factory in Uluberia on Straight Line Method and on remaining assets on
Written Down Value Method. However, Depreciation on Factory Shed &
Tubewell located at the Factory at Liluah has been provided @ 13.91%
(WDV) & Depreciation on Factory Shed located at Uluberia has been
provided @ 4.75% (SLM) which is not lower than the depreciation
stipulated in Schedule XIV of the Companies Act, 1956.
ii) Depreciation on fixed assets added / disposed off during the year
is provided on prorata basis.
iii) Assets costing less than or equal to Rs.5,000/- are fully charged
to revenue in the year of purchase.
iv) Intangible Assets -
Computer Software is normally amortised over its useful life of 3 years
as estimated by the management. Computer Software acquired but not
found suitable is fully amortised in the year of acquisition. Licences
representing right to use are amortised over a period of 3 years.
D. Impairment
Cash generating units/assets are assessed for possible impairment at
each Balance Sheet date based on external and internal sources of
information. Impairment losses, if, any are recognised as an expenses
in statement of Profit and Loss.
E. Investments
Long term investments are carried at cost less provisions for permanent
diminution in value of such investments.
F. Inventories
i) Raw material,Consumable Stores, Spares, Power & Fuels and Packing
Materials are valued at cost on FIFO basis. Inventories of
Rejected/Scrapped finished goods are treated as raw materials and
valued at current Market Price.
ii) Finished goods are valued at cost or net realisable value whichever
is lower. Cost is determined on average cost basis including
proportionate fixed manufacturing overheads based on actual capacity.
G. Foreign Currency Transaction (other than for Fixed Assets)
Export Sales in Foreign Currency are accounted at the Exchange rates
prevailing on the date of negotiation of export documents by bank or at
the exchange rates under the related forward exchange contracts.
Receivable & Payables not covered by forward exchange contracts are
translated at year end exchange rates or at the amounts which is likely
to be realised from and the gains / losses so determined and also the
realised exchange gains/ losses are recognised in the Statement of
Profit and Loss.
H. Cenvat
Central Excise Duty and Service Tax credit on purchase of Raw
Materials, Consumables and Capital Goods and on services received are
deducted from the cost of such materials, consumables, capital goods
and services.
I. Value Added Tax
Input tax credit on purchase of Raw Materials, Consumables and Capital
Goods are deducted from the cost of such materials and capital goods.
J. Export Benefit
Export Incentives which are in the nature of post realisation benefit
are recognised on the basis of the claim made till the date of
financial statements are approved and to the extent of certainty of
collection and export incentives which are in the nature of
pre-realisation benefit recognised in the year of export irrespective
of actual realisation.
K. Gratuity & Encashment of Leave
The Gratuity and Encashment of Leave are provided on Actuarial
Valuation as required under AS-15.
L. Bonus
Bonus is provided for on the basis of liability incurred.
M. Taxes on Income
In case of the Company, provision for tax is made for current and
deferred taxes. Current Tax is provided on the taxable income under the
applicable tax laws and tax rates. Deferred tax assets and liabilities
arising on account of timing differences, which are capable of reversal
in subsequent period are recognised under the tax laws and tax rates
which have been or subsequently enacted.
Deferred tax assets are recognized only to the extent that there is a
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets will be realized. In
case of carry forward of unabsorbed depreciation and tax losses,
deferred tax assets are recognized only if there is "virtual
certainity" that such deferred tax assets can be realised against
future taxable profits.
N. Interest and Finance Charges
Interest and Finance Charges charged to Statement of Profit & Loss
include interest and bank charges on bank borrowings, short term and
long term and discounting of inland, foreign L/Cs including those in
favour of bankers. Interest on negotiation of Purchases/ Sale documents
are charged to revenue account on the basis of recognition of
Purchases/ Sale. Interest attributable to qualifying assets only in
specific borrowing cases are capitalised as cost of assets.
O. Purchases
Purchases are inclusive of carriage charged by the suppliers in their
invoices.
P. Segment Reporting Policies
The Company is engaged in the manufacture of Castings & M.S. Products
which are subject to the same risk & returns and hence there is one
primary segment. The analysis of geographical segments is based on the
areas in which the Company operates.
Q. Subsidies
Government subsidies are accounted when there is no reasonable doubt of
collection.
b) Terms/rights attached to equity shares
The company has only one class of equity shares having face value of
Rs.10 per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2014, the amount of per share dividend
recognised as distributable to equity shareholders is Re. 0.80 (31st
March 2013, Re. 0.60). The total dividend appropriation for the year
ended 31-03-2014 amounted to Rs. 32.36 lacs (Previous year Rs.24.27
lacs) including corporate dividend tax of Rs.4.70 lacs (Previous year
Rs.3.53 lacs).
In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
8. SHORT-TERM BORROWINGS From Banks
(Secured against purchase of bills, hypothecation of Stock in Trade,
Book Debts, Receivables, Term Deposits, Equitable Mortgage of Land /
Buildings owned by the Company as well as by some Directors, charge on
the existing and future Plant & Machinery owned by the Company and
personal guarantee of some Directors and guarantee by ECGC on
pari-passu basis amongst the Bankers including for long term
borrowings).
Mar 31, 2012
A. Accounting Convention
The accounts are prepared on accrual basis under the historical cost
convention in accordance with the provisions of the Companies Act, 1956
and mandatory accounting standards issued by the Companies Accounting
Standards Rules, 2006 except otherwise stated.
All assets and liabilities have been classified as current or non-
current as per the CompanyâÃÃs normal operating cycle and other
criteria set out in the Schedule-VI to the Companies Act, 1956 based on
the time taken between the acquisition of the assets for processing and
their realisation in cash and cash equivalents and the nature of other
receivables, the Company expects its operating cycle as 12 months for
the purpose of current and non- current classification of assets and
liabilities.
B. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. The cost
represents the cost of acquisition inclusive of duties & taxes which
are not recoverable, incidental expenses, erection / commissioning
expenses and interest etc. upto the date the assets is put to use.
The assets are assessed for possible impairment at Balance Sheet dates
based on external and internal sources of information. Impairment of
lossess if any are recognised as an expense in the Profit & Loss
Account. Software expected to provide future enduring economic benefits
is stated at cost less amortization. All upgradation / enhancements are
charged off as revenue expenditure unless they bring significant
additional benefits.
C. Depreciation/Amortisation
i) Depreciation is provided at the rates specified in the schedule XIV
to the Companies Act, 1956, in respect of the fixed assets at the
factory in Uluberia on Straight Line Method and on remaining assets on
Written Down Value method. However, Depreciation on Factory Shed &
Tubewell located at the Factory at Liluah has been provided @ 13.91%
(WDV) & Depreciation on Factory Shed located at Uluberia has been
provided @ 4.75% (SLM) which is not lower than the depreciation
stipulated in Schedule XIV of the Companies Act, 1956.
ii) Depreciation on fixed assets added / disposed off during the year
is provided on prorata basis.
iii) Assets costing less than or equal to Rs.5,000/- are fully charged
to revenue in the year of purchase.
iv) Intangible Assets-
Computer Software is normally amortised over its useful life of 3 years
as estimated by the management. Computer Software acquired but not
found suitable is fully amortised in the year of acquisition. Licences
representing right to use are amortised over a period of 3 years.
D. Impairment
Cash generating units/assets are assessed for possible impairment at
Balance Sheet date based on external and internal sources of
information. Impairment losses, if, any are recognised as an expenses
in statement of Profit and Loss Account.
E. Investments
Long term investments are carried at cost less provisions for permanent
diminution in value of such investments.
F. Inventories
i) Raw Material, Consumable Stores, Spares, Power & Fuels and Packing
Materials are valued at cost on FIFO basis. Inventories of
Rejected/Scrapped finished goods are treated as raw materials and
valued at current Market Price.
ii) Finished goods are valued at cost or net realisable value whichever
is lower. Cost is determined on average cost basis including
proportionate fixed manufacturing overheads based on actual capacity.
G. Foreign Currency Transaction (other than for Fixed Assets)
Export Sales in Foreign Currency are accounted at the Exchange rates
prevailing on the date of negotiation of export documents by bank or at
the exchange rates under the related forward exchange contracts.
Receivables & Payables not covered by forward exchange contracts are
translated at year end exchange rates and the Profit / Loss so
determined and also the realised exchange gains/ losses are recognised
in Profit / Loss Account.
H. Cenvat
Excise Duty and Service Tax credit on purchase of Raw Materials,
Consumables and Capital Goods and on services received are deducted
from the cost of such materials, consumables, capital goods and
services.
I. Value Added Tax
Input tax credit on purchase of Raw Materials, Consumables and Capital
Goods are deducted from the cost of such materials and capital goods.
J. Export Benefit
Export benefits are recognised in the year of export when there is no
reasonable doubt of collection.
K. Gratuity & Encashment of Leave
The Gratuity and Encashment of Leave are provided on Actuarial
Valuation as required under AS-15.
L. Bonus
Bonus is provided for on the basis of liability incurred.
M. Taxes on Income
In case of the Company, provision for tax is made for current and
deferred taxes. Current Tax is provided on the taxable income under the
applicable tax laws and tax rates. Deferred tax assets and liabilities
arising on account of timing differences, which are capable of reversal
in subsequent period are recognised under the tax laws and tax rates
which have been or subsequently enacted.
Deferred tax assets are recognized only to the extent that there is a
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets will be realized. In
case of carry forward of unabsorbed depreciation and tax losses,
deferred tax assets are recognized only if there is "virtual
certainity" that such deferred tax assets can be realised against
future taxable profits.
N. Interest and Finance Charges
Interest and Finance Charges charged to Profit & Loss Account include
interest and bank charges on bank borrowings, shortterm and long term
and discounting of inland, foreign L/Cs including those in favour of
bankers. Interest on negotiation of Purchases/Sale documents are
charged to revenue account on the basis of recognition of
Purchases/Sale. Interest attributable to qualifying assets only in
specific borrowing cases are capitalised as cost of assets.
O. Purchases
Purchases are inclusive of carriage charged by the suppliers in their
invoices.
P. Segment Reporting Policies
The Company is engaged in the manufacture of Castings & M.S. products
which are subject to the same risk & returns and hence there is one
primary segment. The analysis of geographical segments is based on the
areas in which the Company operates.
Q. Subsidies
Government grants and subsidies are accounted when there is no
reasonable doubt of collection.
Mar 31, 2010
A. Accounting Convention
The accounts are prepared on accrual basis under the historical cost
convention in accordance with the provisions of the Companies Act, 1956
and mandatory accounting standards issued by the Companies Accounting
Standards Rules, 2006 except otherwise stated.
B. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. The cost
represents the cost of acquisition inclusive of duties, taxes,
incidental expenses, erection / commissioning expenses and interest
etc. upto the date the assets is put to use.
The Assets are assessed for possible impairment at Balance Sheet dates
based on external and internal sources of information. Impairment of
lossess if any are recognised as an expense in the Profit & Loss
Account.
The useful life of pollution control equipment is considered less than
12 months, therefore cost of pollution control equipments is fully
charged to revenue.
Software expected to provide future enduring economic benefits is
stated at cost less amortization.
All upgradation / enhancements are charged off as revenue expenditure
unless they bring significant additional benefits.
C. Depreciation/Amortisation
i) Depreciation is provided at the rates specified in the schedule XIV
to the Companies Act, 1956, in respect of the fixed assets at the
factory in Uluberia on Straight Line Method and on remaining assets on
Written Down Value method. However, Depreciation on Factory Shed &
Tubewell located at the Factory at Liluah has been provided @ 13.91%
(WDV) & Depreciation on Factory Shed located at Uluberia has been
provided @ 4.75% (SLM) which is not lower than the depreciation
stipulated in Schedule XIV
ii) Depreciation on fixed assets added / disposed off during the year
is provided on prorata basis.
iii) Assets costing less than or equal to Rs.5,000/- are fully charged
to revenue in the year of purchase.
iv) Intangible Assets
Computer Software is normally amortised over its useful life of 3 years
as estimated by the management.
Computer Software acquired but not found suitable is fully amortised in
the year of acquisition.
Licences representing right to use are amortised over a period of 3
years.
D. Investments
Long term investments are carried at cost less provisions for permanent
diminution in value of such investments.
E. Inventories
i) Raw material, Consumable stores, Spares, Power & Fuels and Packing
Materials are valued at cost on FIFO basis. Inventories of Rejected
finished goods are treated as raw materials and valued at current
Market Price.
ii) Finished goods are valued at cost or net realisable value whichever
is lower. Cost is determined on average cost basis including
proportionate fixed manufacturing overheads based on actual capacity.
F. Foreign Currency Transaction (other than for Fixed Assets)
Export Sales in Foreign Currency are accounted at the Exchange rates
prevailing on the date of negotiation of export documents by bank or at
the exchange rates under the related forward exchange contracts.
Receivable & Payables not covered by forward exchange contracts are
translated at year end exchange rates and the Profit / Loss so
determined and also the realised exchange gains/ losses are recognised
in Profit / Loss Account.
G. Cenvat
Excise Duty and Service Tax credit on purchase of Raw Materials,
Consumables and Capital Goods and on services received are deducted
from the cost of such materials, capital goods and services.
H. Value Added Tax
Input tax credit on purchase of Raw Materials, Consumables and Capital
Goods are deducted from the cost of such materials and capital goods.
I. Export Benefit
Export benefit under Duty Entitlement Pass Book scheme are accounted
when there is no reasonable doubt of collection.
J. Gratuity & Encashment of Leave
The Gratuity and Encashment of Leave are provided on Acturial Valuation
as required under AS-15 (revised).
K. Bonus
Bonus is provided for on the basis of liability incurred.
L. Taxes on Income
The Company provided for taxes on Income, on ÃTax Effect AccountingÃ
Method.
M. Interest and Finance Charges
Interest and Finance Charges charged to Profit & Loss Account include
interest and bank charges on bank borrowings, short term and long term
and discounting of inland, foreign L/Cs including those in favour of
bankers. Interest on negotiation of Purchases/Sale documents are
charged to revenue account on the basis of recognition of
Purchases/Sale. Interest attributable to qualifying assets only in
specific borrowing cases are capitalised as cost of assets.
N. Purchases
Purchases are inclusive of carriage charged by the suppliers in their
invoices.
O. Segment Reporting Policies
The Company is engaged in the manufacture of Castings & M.S. products
which are subject to the same risk & returns and hence there is one
primary segment. The analysis of geographical segments is based on the
areas in which the Company operates.
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