Mar 31, 2015
(a) Basis of Preparation of Financial Statements
The Company's operating results continue to be materially affected by
various factors particularly poor market conditions and deep recession
in the steel market and general economic slow down. The accumulated
losses of the company as at 31.03.2015 stand at ' 8854.15 lacs against
the paid up Share capital of ' 5343.24 lacs. The current liabilities as
at 31.03.2015 exceeded the current assets by ' 4145.83 lacs. The
company has referred to the Board for Industrial & Financial
Reconstruction (BIFR) under section 15 of the Sick Industrial Companies
(special provisions) Act, 1985, which has been registered by BIFR vide
case No. 74/2014. The company has declared a consensus lockout w.e.f.
30.05.2014 due to lack of demand of its products and the lockout is
still in force.
These conditions indicate the existence of material uncertainty that
may cast significant doubt about the company's ability to continue as
going concern, which is dependent on the company estabilishing the
profitable operations and sustaining cash flow. While the management is
exploring various options and is in the process for restructuring the
operations of the company, it is also hopeful that BIFR will prepare
the revival scheme with the help of Operating Agency in due course of
time. Accordingly, the company's financial statements have been
prepared on a going concern basis whereby the value of assets and
liabilities are expected to be realized in the normal course of
business.The accounts have been prepared under the historical cost
convention on accrual basis of accounting in accordance with the
generally accepted accounting principles in the provisions of companies
Act, 2013, as adopted consistently by the company.
(b) Fixed Assets :
All fixed assets are valued at cost net of recoverable taxes less
depreciation. Roll-over charges on forward exchange contracts and loss
or gain on conversion of foreign currency liabilities for acquisition
of fixed assets are added to or deducted from the cost of fixed assets.
(c) Intangible asset :
Intangible asset acquired seperately are measured at cost less
amortisation and impairment losses, if any. Intangible assets are
amortised on a straight line basis over the estimated useful life.
(d) Depreciation :
Depreciation on Tangible Fixed Assets has been provided on the basis of
life at rates prescribed in Schedule II to the Companies Act,2013.
Straight line method as per useful life prescribed in shcedule II to
the companies Act 2013.
(e) Foreign Exchange Transactions :
(i) Transactions in foreign exchange are translated to Indian Rupees at
the rate of exchange ruling on the date of transaction.
(ii) All foreign currency liabilities related to acquisition of Fixed
Assets remaining unsettled at the end of the year are converted at
contract rates, where covered by foreign exchange contracts and at year
end rates in other cases and the difference in translation is adjusted
in the carrying cost of such assets.
(iii) Other outstanding foreign currency liabilities and receivables
are translated at the year end rates and the difference in translation
is recognized in the Statement of Profit and Loss.
(f) Investments :
Long term investments are stated at cost and provision for diminution
is made, if such diminution is other than temporary in nature.
(g) Current Assets :
Finished Goods and Stock-in-Progress are valued at cost or net
realisable value whichever is lower. Other inventories are valued at
cost. All other items of current assets are stated after provisions for
any diminution in value.
(h) Revenue Recognition :
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Sales comprise sale of goods and services,
conversion charges, exports. Sales are recognised when the significant
risks and rewards of ownership of the goods have passed to the buyer.
Sales are inclusive of excise duty but net of trade discounts and VAT.
However, excise duty relating to sales is reduced from gross turnover
for disclosing net turnover. Export benefits are recognised on accrual
basis as per schemes specified in Foreign Trade Policy, as amended from
time to time. Interest income is recognised on a time proportion basis
taking into account the amount outstanding and the rate applicable.
(i) Employee Benefits :
(i) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss for the year in
which the related service is rendered.
(ii) Post employment and other long term employee benefits are
recognised as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The gratuity expense
is recognised at the present value of the amounts payable determined
using acturial valuation techniques. Acturial gains and losses in
respect of gratuity benefits are charged to the Statement of Profit and
Loss.
(j) Borrowing Costs :
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes substantial period of
time to get ready for its intended use or sale are capitalised as part
of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
(k) Provision for Current and deferred Tax :
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred tax resulting from "timing differences "between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the Balance Sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a virtual certainty that the asset will be realised in
future.
(l) Contingent liabilities :
Contingent Liabilities are not recognised but are disclosed in the
notes.
Mar 31, 2014
(a) Corporate Information
Facor Steels Limited ("The Company") is a Public Limited Company
incorporated in India under the Companies Act, 1956. It is part of
Worldwide reputed FACOR Group of Industries. The Company is listed at
Bombay Stock Exchange. The Company, is one of the leading Producers of
Carbon/Alloy steel/Stainless and special steel. The products are
manufactured at its works in Nagpur and caters both domestic and
international market.The products are meant for critical industrial
application.
(b) Basis of Preparation of Financial Statements
The company''s operating results continue to be materially affected by
various factors particular poor market conditions and depression in the
sale market and general economic slow down. The company is taking
various steps for improving operational efficiencies - expanding its
market reach and other cost control measures to improve operating
results and cash flow. The company continue to explore various options
to raise funds to meet their short term obligations with promoters
infusion of funds in the current year to provide necessary operational
funding support. Accordingly the company''s financial statement have
been prepared as going concern basis whereby results of assets and
liabilities are expected to be realise in the normal course of
business. These accounts have been prepared under the historical cost
convention on accrual basis of accounting in accordance with the
generally accepted accounting principles and the provisions of the
Companies Act, 1956, as adopted consistently by the Company.
(c) Fixed Assets :
All fixed assets are valued at cost net of recoverable taxes less
depreciation. Roll-over charges on forward exchange contracts and loss
or gain on conversion of foreign currency liabilities for acquisition
of fixed assets are added to or deducted from the cost of fixed assets.
(d) Intangible asset :
Intangible asset acquired seperately are measured at cost less
amortisation and impairment losses, if any, Intangible assets are
amortised on a straight line basis over the estimated useful life.
(e) Depreciation :
Depreciation is provided on different fixed assets on the basis of
''straight line method'' and ''written down value method'' at rates
prescribed in Schedule XIV to the Companies Act,1956.
(f) Foreign Exchange Transactions :
(i) Transactions in foreign exchange are translated to Indian Rupees at
the rate of exchange ruling on the date of transaction.
(ii) All foreign currency liabilities related to acquisition of Fixed
Assets remaining unsettled at the end of the year are converted at
contract rates, where covered by foreign exchange contracts and at year
end rates in other cases and the difference in translation is adjusted
in the carrying cost of such assets.
(iii) Other outstanding foreign currency liabilities and receivables
are translated at the year end rates and the difference in translation
is recognized in the Statement of Profit and Loss.
(g) Investments :
Long term investments are stated at cost and provision for diminution
is made, if such diminution is other than temporary in nature.
(h) Current Assets :
Finished Goods and Stock-in-Process are valued at cost or net
realisable value whichever is lower. Other inventories are valued at
cost. All other items of current assets are stated after provisions for
any diminution in value.
(i) Revenue Recognition :
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.Sales comprise sale of goods and services, conversion
charges and exports.Sales are recognised when the significant risks and
rewards of ownership of the goods have passed to the buyer. Sales are
inclusive of excise duty but net of trade discounts and VAT. However,
excise duty relating to sales is reduced from gross turnover for
disclosing net turnover.Export benefits are recognised on accrual basis
as per schemes specified in Foreign Trade Policy, as amended from time
to time. Interest income is recognised on a time proportion basis
taking into account the amount outstanding and the rate applicable.
(j) Employee Benefits :
(i) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss for the year in
which the related service is rendered.
(ii) Post employment and other long term employee benefits are
recognised as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The gratuity expense
is recognised at the present value of the amounts payable determined
using acturial valuation techniques. Acturial gains and losses in
respect of gratuity benefits are charged to the Statement of Profit and
Loss.
(k) Borrowing Costs :
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes substantial period of
time to get ready for its intended use or sale are capitalised as part
of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
(l) Provision for Current and Deferred Tax :
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred tax resulting from "timing differences " between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the Balance Sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a virtual certainty that the asset will be realised in
future.
(m) Contingent liabilities :
Contingent Liabilities are not recognised but are disclosed in the
notes.
Mar 31, 2013
(a) Basis of Preparation of Financial Statements
These accounts have been prepared under the historical cost convention
on accrual basis of accounting in accordance with the generally
accepted accounting principles and the provisions of the Companies Act,
1956, as adopted consistently by the Company.
(b) Fixed Assets :
All fixed assets are valued at cost net of recoverable taxes less
depreciation. Roll-over charges on forward exchange contracts and loss
or gain on conversion of foreign currency liabilities for acquisition
of fixed assets are added to or deducted from the cost of fixed assets.
(c) Intangible asset :
Intangible asset acquired seperately are measured at cost less
amortisation and impairment losses, if any. Intangible assets are
amortised on a straight line basis over the estimated useful life.
(d) Depreciation :
Depreciation is provided on different fixed assets on the basis of
''straight line method'' and ''written down value method'' at rates
prescribed in Schedule XIV to the Companies Act,1956.
(e) Foreign Exchange Transactions :
(i) Transactions in foreign exchange are translated to Indian Rupees at
the rate of exchange ruling on the date of transaction.
(ii) All foreign currency liabilities related to acquisition of Fixed
Assets remaining unsettled at the end of the year are converted at
contract rates, where covered by foreign exchange contracts and at year
end rates in other cases and the difference in translation is adjusted
in the carrying cost of such assets.
(iii) Other outstanding foreign currency liabilities and receivables
are translated at the year end rates and the difference in translation
is recognized in the Statement of Profit and Loss.
(f) Investments :
Long term investments are stated at cost and provision for diminution
is made, if such diminution is other than temporary in nature.
(g) Current Assets :
Finished Goods and Stock-in-Progress are valued at cost or net
realisable value whichever is lower. Other inventories are valued at
cost. All other items of current assets are stated after provisions
for any diminution in value.
(h) Revenue Recognition :
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Sales comprise sale of goods and services,
conversion charges, exports. Sales are recognised when the significant
risks and rewards of ownership of the goods have passed to the buyer.
Sales are inclusive of excise duty but net of trade discounts and VAT.
However, excise duty relating to sales is reduced from gross turnover
for disclosing net turnover. Export benefits are recognised on accrual
basis as per schemes specified in Foreign Trade Policy, as amended from
time to time. Interest income is recognised on a time proportion basis
taking into account the amount outstanding and the rate applicable.
(i) Employee Benefi ts :
(i) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss for the year in
which the related service is rendered.
(ii) Post employment and other long term employee benefits are
recognised as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The gratuity expense
is recognised at the present value of the amounts payable determined
using acturial valuation techniques. Acturial gains and losses in
respect of gratuity benefits are charged to the Statement of Profit and
Loss.
(j) Borrowing Costs :
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes substantial period of
time to get ready for its intended use or sale are capitalised as part
of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
(k) Provision for Current and deferred Tax :
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Ta x Act, 1961.
Deferred tax resulting from "timing differences " between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the Balance Sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a virtual certainty that the asset will be realised in
future.
(l) Contingent liabilities :
Contingent Liabilities are not recognised but are disclosed in the
notes.
Mar 31, 2012
(a) Corporate Information
Facor Steels Limited ("The Company") is a Public Limited Company
incorporated in India under the Companies Act, 1956. It is part of
Worldwide reputed FACOR Group of Industries. The Company is listed at
Bombay Stock Exchange . The Company, is one of the leading Producers of
Carbon/Alloy steel/Stainless and special steel. The products are
manufactured at its works in Nagpur and caters both domestic and
international market. The products are meant for critical industrial
application.
(b) Basis of Preparation of Financial Statements
These accounts have been prepared under the historical cost convention
on accrual basis of accounting in accordance with the generally
accepted accounting principles and the provisions of the Companies Act,
1956, as adopted consistently by the Company.
(c) Fixed Assets
All fixed assets are valued at cost net of recoverable taxes less
depreciation. Roll-over charges on forward exchange contracts and loss
or gain on conversion of foreign currency liabilities for acquisition
of fixed assets are added to or deducted from the cost of fixed assets.
(d) Intangible asset
Intangible asset acquired seperately are measured at cost less
amortisation and impairment losses, if any, Intangible assets are
amortised on a straight line basis over the estimated useful life.
(e) Depreciation
Depreciation is provided on different fixed assets on the basis of
'straight line method' and 'written down value method' at rates
prescribed in Schedule XIV to the Companies Act,1956.
(f) Foreign Exchange Transactions
(i) Transactions in foreign exchange are translated to Indian Rupees at
the rate of exchange ruling on the date of transaction.
(ii) All foreign currency liabilities related to acquisition of Fixed
Assets remaining unsettled at the end of the year are converted at
contract rates, where covered by foreign exchange contracts and at year
end rates in other cases and the difference in translation is adjusted
in the carrying cost of such assets.
(iii) Other outstanding foreign currency liabilities and receivables
are translated at the year end rates and the difference in translation
is recognized in the Statement of Profit and Loss.
(g) Investments
Long term investments are stated at cost and provision for diminution
is made, if such diminution is other than temporary in nature.
(h) Current Assets
Finished Goods and Stock-in-Process are valued at cost or net
realisable value whichever is lower. Other inventories are valued at
cost. All other items of current assets are stated after provisions
for any diminution in value.
(i) Revenue Recognition
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Sales comprise sale of goods and services,
conversion charges and exports. Sales are recognised when the
significant risks and rewards of ownership of the goods have passed to
the buyer. Sales are inclusive of excise duty but net of trade
discounts and VAT. However, excise duty relating to sales is reduced
from gross turnover for disclosing net turnover. Export benefits are
recognised on accrual basis as per schemes specified in Foreign Trade
Policy, as amended from time to time. Interest income is recognised on
a time proportion basis taking into account the amount outstanding and
the rate applicable.
(j) Employee Benefits
(i) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss for the year in
which the related service is rendered.
(ii) Post employment and other long term employee benefits are
recognised as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The gratuity expense
is recognised at the present value of the amounts payable determined
using acturial valuation techniques. Acturial gains and losses in
respect of gratuity benefits are charged to the Statement of Profit and
Loss.
(k) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes substantial period of
time to get ready for its intended use or sale are capitalised as part
of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
(l) Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred tax resulting from "timing differences " between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the Balance Sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a virtual certainty that the asset will be realised in
future.
(m) Contingent liabilities
Contingent Liabilities are not recognised but are disclosed in the
notes.
Mar 31, 2011
(a) Accounting Concepts : The accounts of the Company are prepared
under the historical cost convention using the accrual method of
accounting in accordance with the generally accepted accounting
principles in India, mandatory accounting standards as specified in the
Companies (Accounting Standards) Rules, 2006 and the relevant
provisions of the Companies Act, 1956.
(b) Use of Estimates : The preparation of financial statements in
confirmity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosures of contingent
liabilities as at the date of financial statements and the results of
operations during the reported period. Although, these estimates are
based upon management's best knowledge of current events and
actions,actual results could differ from these estimates.
(c) Fixed Assets : All fixed assets are valued at cost less
depreciation. Roll-over charges on forward exchange contracts and loss
or gain on conversion of foreign currency liabilities for acquisition
of fixed assets are added to or deducted from the cost of fixed assets.
(d) Depreciation : Depreciation is provided on different fixed assets
on the basis of 'straight line method' and 'written down value method'
at rates prescribed in Schedule XIV to the Companies Act,1956, as
clarified in Note to Schedule 'E' to the Accounts.
(e) Investments : Long term investments are stated at cost and
provision for diminution is made, if such diminution is other than
temporary in nature.
(f) Current Assets : Finished Goods and Work-in-Process are valued at
cost or net realisable value whichever is lower. Other inventories are
valued at cost. All other items of current assets are stated after
provisions for any diminution in value. Inventories are measured using
Weighted Average method.
(g) Borrowing Cost : Borrowing costs that are directly attributable to
the acquisition or construction of a qualifying asset are capitalized
as part of the cost of that asset. The amount of borrowing costs
eligible for capitalization are determined in accordance with
Accounting Standard 16 on ÃBorrowing CostsÃ. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
(h) Revenue Recognition:
Revenue is recongnized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
Sale of Goods:
Sale is recognized,when the significant risks and rewards of ownership
of the goods is passed to the buyer, which is generally on
despatch of goods to customers except in case of consignment sales,
Sales exclude excise duty and VAT and is net of discounts and
incentives to the customers.
(i) Employees Retirement Benefits :
(a) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
(b) Post employment and other long term employee benefits are
recognised as an expense in the Profit and Loss account for the year in
which the employee has rendered services. The expense is recognised at
the present value of the amounts payable determined using acturial
valuation techniques. Acturial gains and losses in respect of post
employment and other long tern benefits are charged to the Profit and
Loss account.
(j) Foreign Exchange Transactions :
(a) Transactions in foreign exchange are translated to Indian Rupees at
the rate of exchange ruling on the date of transaction.
(b) All foreign currency liabilities related to acquisition of Fixed
Assets remaining unsettled at the end of the year are converted at
contract rates, where covered by foreign exchange contracts and at year
end rates in other cases and the difference in translation is adjusted
in the carrying cost of such assets.
(c) Other outstanding foreign currency liabilities and receivables are
translated at the year end rates and the difference in translation is
recognized in the Profit & Loss A/c.
(k) Provision for Current and Deferred Tax:
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Ta x Act,1961.
Deferred tax resulting from "timing differences"between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date. The
deferred tax assets/liabilities is recognised and carried forward only
to the extent that there is a virtual certainty that the asset will be
realised in future.
(l) Research and Development :
Research and Development costs (other than cost of fixed assets
acquired) are charged as expenses in the year in which they are
incurred.
(m) Cash Flow Statement :
Cash flows are reported using the indirect method, whereby net profit
before tax is adjusted for the effects of transactions of a non cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
(n) Provisions and Contingent Liabilities :
A provision is recognized if, as a result of a past event,the company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation
or a present obligation that may, but probably will not,require an
outflow of resources. Where there is a possible obligation or a present
obligation in respect of which the likelyhood of outflow of resources
is remote, no provision or disclosure is made.
Mar 31, 2010
(a) Accounting Concepts :
(i) These accounts have been prepared under the historical cost
convention on accrual basis of accounting in accordance with the
generally accepted Accounting Standards and the provisions of the
Companies Act, 1956, as adopted consistently by the Company.
(ii) Accounting policy not specifically referred to otherwise are
consistent and in consonance with the generally accepted accounting
principles followed by the Company.
(b) Sales :
Sales comprise sale of goods and services, Inter-unit transfers and
exports.
(c) Research and Development :
Research and Development costs (other than cost of fixed assets
acquired) are charged as expenses in the year in which they are
incurred.
(d) Employees Retirement Benefits :
Companys contribution to Provident Fund and Superannuation Fund is
charged to Profit and Loss Account. Liability for Gratuity and
unutilised leave benefits to employees is provided on the basis of
Actuarial Valuation.
(e) Fixed Assets :
All fixed assets are valued at cost less depreciation. Roll-over
charges on forward exchange contracts and loss or gain on conversion of
foreign currency liabilities for acquisition of fixed assets are added
to or deducted from the cost of fixed assets.
(f) Depreciation :
Depreciation is provided on different fixed assets on the basis of
straight line method and written down value method at rates
prescribed in Schedule XIV to the Companies Act,1956, as clarified in
Note (a) to Schedule E to the Accounts.
(g) Current Assets :
Finished Goods and Work-in-Process are valued at cost or net realisable
value whichever is lower. Other inventories are valued at cost.
All other items of current assets are stated after provisions for any
diminution in value.
(h) Investments :
Long term investments are stated at cost and provision for diminution
is made, if such diminution is other than temporary in nature.
(i) Foreign Exchange Transactions :
(a) Transactions in foreign exchange are translated to Indian Rupees at
the rate of exchange ruling on the date of transaction.
(b) All foreign currency liabilities related to acquisition of Fixed
Assets remaining unsettled at the end of the year are converted at
contract rates, Where covered by foreign exchange contracts and at year
end rates in other cases and the difference in translation is adjusted
in the carrying cost of such assets.
(c) Other outstanding foreign currency liabilities and receivables are
translated at the year end rates and the difference in translation is
recognized in the Profit & Loss A/c.
(j) Provision for Current and Deferred Tax:
Provision for current tax is made after taking into consideration
benfits admissible under the provisions of the Income Ta x Act,1961.
Deferred tax resulting from "timing differences"between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date. The
deferred tax assets is recognised and carried forward only to the
extent that there is a virtual certainty that the asset will be
realised in future.