Mar 31, 2016
SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Accounting :
The financial statements have been prepared in accordance with Generally Accepted Accounting Principles in India (''GAAP'') under the historical cost convention on the accrual basis of accounting. GAAP comprises mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 2013, guidelines issued by the Securities and Exchange Board of India (''SEBI'') and other pronouncements of the Institute of Chartered Accountants of India (''ICAI''), to the extent applicable. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in an accounting policy hitherto in use. The financial statements are prepared and presented in Indian Rupees unless otherwise stated.
B. Use of Estimates :
The preparation of financial statements in conformity with generally accepted accounting principles require the management to make estimates and assumptions that affect the reported amounts of Assets and Liabilities and disclosure of Contingent Liabilities at the date of the financial statements and the result of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Significant estimates used by the management in the preparation of these financial statements include estimates of the economic useful life of Fixed Assets and provisions for bad and doubtful debts. Any revision to accounting estimates is recognized prospectively.
C. Revenue Recognition :
Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts. Dividend income is recognized when the right to receive payment is established.
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable and net off with finance cost.
D. Fixed Assets :
Tangible Assets
Fixed Assets are stated at cost of acquisition and subsequent improvements thereto, inclusive of taxes, freight and other incidental expenses related to acquisition, improvements and installation, except in case of revaluation of Fixed Assets where they are stated at revalued amount, as contained in AS-10. Capital Work-in-Progress includes cost of Fixed Assets under installation, any unallocated expenditure and Interest during construction period on loans taken to finance the Fixed Assets. Borrowing costs directly attributable to acquisition or construction of those fixed assets, which necessarily take a substantial period of time to get ready for their intended use, are capitalized. Forex on liability towards Fixed Assets is added or deducted from the cost of Assets.
Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date and the cost of fixed assets not ready for their intended use on such date, are disclosed under long-term loans and advances and capital work-in-progress respectively.
Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.
E. Impairment of Assets :
An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been change in the estimate of recoverable amount.
F. Central Value Added Tax (CENVAT) :
CENVAT claimed on capital goods is reduced from the cost of plant and machinery. CENVAT claimed on purchases of raw and other materials is reduced from the cost of such materials.
G. Depreciation :
Depreciation on Factory Building, Plant & Machinery, Electrical Installation and equipment is provided on a straight-line method over the estimated life of assets.
Effective 1st April 2014, the Company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on additions during the year is being calculated on pro-rata basis from the following month, in which such additions were made or up to the month preceding the month of such deletion, as the case may be.
H. Borrowing Cost :
Borrowing cost relating to acquisition/ construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use/sale. Borrowing costs that are attributable to the projects are charged to the respective projects. All other borrowing costs, not eligible for inventorisation /capitalization, are charged to revenue.
I. Lease Rent :
Lease under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired are capitalized at fair value of the asset or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense on a straight line basis in the statement of profit and loss over the lease term.
J. Inventories :
Stock of Raw materials, stores & spares, Fuel & packing material are valued at cost or Net realizable value whichever is lower. Traded goods and finished goods are valued at lower of cost or net realizable value. Stock of Scrap is valued at net realizable value. The cost of material is arrived on First in First out basis.
K. Foreign Currency Transactions :
(I) a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing
on the date of the transaction or that approximates the actual rate at the date of the transaction.
b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.
c) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss Statement, except in case of long term liabilities, where they relate to acquisition of Fixed Assets, in which case they are adjusted to the carrying cost of such assets.
(II) Forward and Options Contracts in Foreign Currencies :
In respect of derivative contracts, premium paid, gains/losses on settlement and losses on restatement are recognized in the Profit and Loss Statement except in case where they relate to the acquisition or construction of Fixed Assets, in which case, they are adjusted to the carrying cost of such assets.
L. Investments :
Current investments are carried at lower of cost and quoted/fair value, computed category wise. Non Current investments are stated at cost. Provision for diminution in the value of Non Current investments is made only if such a decline is other than temporary.
M. Taxation :
Provision for tax for the year comprises current Income Tax and Deferred Tax and is provided as per the Income Tax Act, 1961.
Deferred tax resulting from timing differences between the book and the tax profits is accounted for, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future, however where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets/ liabilities are reviewed as at each balance sheet date.
Minimum Alternate Tax (''MAT'') paid in accordance with the Indian Income Tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the balance sheet if there is convincing evidence that the Company will pay normal tax after the tax holiday period and the resultant assets can be measured reliably.
N. Retirement benefits :
a) Contribution to provident fund and family pension fund are accrued in accordance with applicable statute and deposited with appropriate authorities.
b) Compensated absences, a long-term defined employee benefit, is accrued based on an actuarial valuation at the balance sheet date, carried out by an independent actuary. The group accrues for the expected cost of short-term compensated absences in the period in which the employee renders services.
c) Gratuity, a defined benefit for employees of the Indian entity, is accrued based on an actuarial valuation at the balance sheet date, carried out by an independent actuary. The Company has an employees'' gratuity fund managed by the Life Insurance Corporation of India (''LlC''). Provision for gratuity liabilities, pending remittance to the fund, is carried in the balance sheet. Actuarial gains and losses are charged to the profit and loss account.
O. Segment Accounting :
The Company has disclosed business segment as the primary segment. Segments have been identified taking into account the type of products, the differing risk and returns and the internal reporting system. The various segments identified by the Company comprised as under:-
i) Manufacturing (G.P./G.C./C.C.L. Coils/Sheets/Lead Ingots/Aluminum Ingots)
ii) Trading
P. Segment Accounting Policies :
Following accounting policies have been followed by the Company for the segment reporting:
a) Segment revenue includes sales and other income directly identifiable with/ allocable to segment.
b) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment results. The expenses, which relate to the Company as a whole and not allocable to segment, are included under un-allocable expenses.
c) Income which relates to the Company as a whole and not allocable to segment is included under unallocable income.
d) i) Segment Assets includes those assets directly identifiable with respective segments and employed by a segment in its operating activities, but does not include income tax assets.
ii) Segment liabilities includes those liabilities directly identifiable with respective segments and operating liabilities that results, from operating activities of a segment, but does not include income tax liabilities and financial liabilities.
iii) Unallocable corporate assets and liabilities represent the assets and liabilities that relate to Company as a whole and not allocable to any segment.
Q. Provisions, Contingent Liabilities and Contingent Assets :
Provisions is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognized nor disclosed in the financial statements.
R. Inter unit Transfer :
a) Inter unit transfers of goods for internal use as captive consumption are not shown in the Profit and Loss account.
b) Any unrealized profit on unsold stocks is ignored while valuing inventories.
S. Cash Flow Statement :
The Cash Flow Statement is prepared by the "indirect method" set out in Accounting Standard 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the Company.
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand and demand deposits with banks.
T. Earnings Per Equity Share :
The earnings considered in ascertaining the companies earning per equity share comprise net profit after tax, preference dividend, tax on preference dividend and includes the post tax effect of any extra-ordinary/exceptional item is considered. The number of equity shares used in computing basic earnings per equity share is the weighted average number of shares outstanding during the year.
The number of equity shares used in computing diluted earnings per share comprises the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.
Mar 31, 2015
A. Basis of Accounting :
The Financial Statements have been prepared in accordance with
Generally Accepted Accounting Principles in India ('GAAP') under the
historical cost convention on the accrual basis of accounting. GAAP
comprises mandatory accounting standards as specified in the relevant
provisions of the Companies Act, 2013, guidelines issued by the
Securities and Exchange Board of India ('SEBI') and other
pronouncements of the Institute of Chartered Accountants of India
('ICAI') to the extent applicable. Accounting policies have been
consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard
requires a change in an accounting policy hitherto in use. The
financial statements are prepared and presented in Indian Rupee unless
otherwise stated.
B. Use of Estimates :
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosures of contingent liabilities at the date
of the financial statements and the result of operations during the
reporting period. Although these estimates are based upon management's
best knowledge of current events and actions, actual results could
differ from these estimates. Significant estimates used by the
management in the preparation of these financial statements include
estimates of the economic useful life of Fixed Assets and provision for
bad and doubtful debts. Any revision to Accounting Estimates is
recognised prospectively.
C. Revenue Recognition :
Revenue is recognised only when risks and rewards incidental to
ownership are transferred to the customer, it can be reliably measured
and it is reasonable to expect ultimate collection. Revenue from
operations includes sale of goods, services, service tax, excise duty
and sales during trial run period, adjusted for discounts (net), and
gain/loss on corresponding hedge contracts.
Dividend income is recognised when the right to receive payment is
established.
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the interest rate applicable and net
off with finance cost.
D. Fixed Assets :
Tangible Assets
Fixed Assets are stated at cost of acquisition and subsequent
improvements thereto, inclusive of taxes, freight and other incidental
expenses related to acquisition, improvements and installation, except
in case of revaluation of Fixed Assets where they are stated at
revalued amount, as contained in Accounting Standard-10. Capital
Work-in-Progress includes cost of Fixed Assets under installation, any
unallocated expenditure and interest during construction period on
loans taken to finance the Fixed Assets. Borrowing costs directly
attributable to acquisition or construction of those fixed assets,
which necessarily take a substantial period of time to get ready for
their intended use, are capitalised. Forex on liability towards Fixed
Assets is added or deducted from the cost of Assets. Advances paid
towards the acquisition of Fixed Assets outstanding at each balance
sheet date and the cost of Fixed Assets not ready for their intended
use on such date, are disclosed under long-term loans and advances and
Capital Work-in-Progress respectively.
Intangible Assets
Intangible Assets are stated at cost of acquisition net off recoverable
taxes less accumulated amortisation/depletion and impairment loss, if
any. The cost comprises purchase price, borrowing cost, and any cost
directly attributable to bringing the asset to its working condition
for the intended use and net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the
Intangible Assets.
E. Impairment of Assets :
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting periods is
reversed if there has been change in the estimate of recoverable
amount.
F. Central Value Added Tax (CENVAT) :
CENVAT claimed on Capital Goods is reduced from the cost of Plant and
Machinery. CENVAT claimed on purchases of Raw materials and other
materials is reduced from the cost of such materials.
G. Depreciation :
Depreciation on Factory Building, Plant and Machinery, Electrical
Installation and equipment is provided on a Straight Line Method over
the estimated life of assets.
Effective 1st April, 2014, the Company depreciates its Fixed Assets
over the useful life in the manner prescribed in Schedule II of the
Act, as against the earlier practice of depreciating at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on additions during the year is being calculated on
pro-rata basis from the following month, in which such additions were
made or up to the month preceding the month of such deletion, as the
case may be.
H. Borrowing Cost :
Borrowing cost relating to acquisition/construction of qualifying
assets are capitalised untill the time all substantial activities
necessary to prepare the qualifying assets for their intended use are
complete. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use/sale. Borrowing Costs
that are attributable to the projects are charged to the respective
projects. All other Borrowing Costs, not eligible for
inventarisation/capitalisation, are charged to revenue.
I. Lease Rent :
Lease under which the Company assumes substantially all the risks and
rewards of ownership are classified as finance leases. Such assets
acquired are capitalised at fair value of the asset or present value of
the minimum lease payments at the inception of the lease, whichever is
lower. Lease payments under operating leases are recognised as an
expense on a straight line basis in the Profit & Loss over the lease
term.
J. Inventories :
Stock of Raw Materials, Stores & Spares, Fuel & Packing Materials are
valued at cost or Net realizable value whichever is lower. Traded Goods
and Finished Goods are valued at lower of Cost or net realisable value.
Stock of Scrap is valued at net realisable value. The cost of material
is arrived on First In First Out basis.
K. Foreign Currency Transactions :
(I) a) Transactions denominated in foreign currencies are recorded at
the exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
b) Monetary items denominated in foreign currencies at the year end are
restated at year end rates. In case of items which are covered by
forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recognised over
the life of the contract.
c) Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
Statement, except in case of long term liabilities, where they relate
to acquisition of Fixed Assets, in which case they are adjusted to the
carrying cost of such assets.
(II) Forward and Options Contracts in Foreign Currencies :
In respect of derivative contracts, premium paid, gains/losses on
settlement and losses on restatement are recognised in the Profit and
Loss Statement except in case where they relate to the acquisition or
construction of Fixed Assets, in which case, they are adjusted to the
carrying cost of such assets.
L. Investments :
Current Investments are carried at lower of cost and quoted/fair value,
computed category-wise. Non Current investments are stated at cost.
Provision for diminution in the value of Non Current investments is
made only if such a decline is other than temporary.
M. Taxation :
Provision for tax for the year comprises current Income Tax and
Deferred Tax and is provided as per the Income Tax Act, 1961.
Deferred Tax resulting from timing differences between the book and the
tax profits is accounted for, at the current rate of tax, to the extent
that the timing differences are expected to Crystallise. Deferred Tax
assets are recognised only to the extent there is reasonable certainty
that the assets can be realised in the future; however where there is
unabsorbed depreciation or carried forward loss under taxation laws,
deferred tax assets are recognised only if there is a virtual certainty
of realisation of such assets. Deferred Tax Assets/Liabilities are
reviewed as at each Balance Sheet Date.
Minimum Alternate Tax ('MAT') paid in accordance with the Indian Income
Tax laws, which gives rise to future economic benefits in the form of
tax credit against future income tax liability, is recognised as an
asset in the balance sheet if there is convincing evidence that the
Company will pay normal tax after the tax holiday period and the
resultant assets can be measured reliably.
N. Retirement benefits :
a) Contribution to Provident Fund and Family Pension Fund are accrued
in accordance with applicable statute and deposited with appropriate
authorities.
b) Compensated absences, a long-term defined employee benefit, is
accrued based on an actuarial valuation at the balance sheet date,
carried out by an independent actuary. The Group accrues for the
expected cost of short-term compensated absences in the period in which
the employee renders services.
c) Gratuity, a defined benefit for employees of the Indian entity, is
accrued based on actuarial valuation at the Balance Sheet Date, carried
out by an independent actuary. The Company has an employees' gratuity
fund managed by the Life Insurance Corporation of India ('LIC').
Provision for gratuity liabilities, pending remittance to the fund is
carried in the Balance Sheet. Actuarial gains and losses are charged to
the Profit and Loss Account.
O. Segment Accounting :
The Company has disclosed Business Segment as the Primary Segment.
Segments have been identified taking into account the type of products,
the differing risk and returns and the Internal
Reporting System. The various Segments identified by the Company
comprised as under:
i) Manufacturing (G.P. / G.C. / C.C.L. Coils / Sheets / Lead Ingots /
Aluminium Ingots )
ii) Trading
P. Segment Accounting Policies :
Following Accounting Policies have been followed by the Company for the
Segment Reporting :
a) Segment Revenue includes Sales and Other Income directly
identifiable with/allocable to Segment.
b) Expenses that are directly identifiable with/allocable to Segments
are considered for determining the Segment Results. The expenses, which
relate to the Company as a whole and not allocable to Segment are
included under unallocable expenses.
c) Income which relates to the Company as a whole and not allocable to
Segment is included under unallocable income.
d) i) Segment Assets includes those assets directly identifiable with
respective Segments and employed by a Segment in its operating
activities, but does not includes Income Tax Assets.
ii) Segment Liabilities includes those liabilities directly
identifiable with respective Segments and Operating Liabilities that
results from operating activities of a Segment, but does not include
Income Tax Liabilities and Financial Liabilities.
iii) Unallocable Corporate Assets and Liabilities represents the assets
and liabilities that relate to the Company as a whole and not allocable
to any Segment.
Q. Provisions, Contingent Liabilities and Contingent Assets :
Provisions is recognised in the accounts when there is a present
obligation as a result of past events and it is probable that an
outflow of resources will be required to settle the obligation and a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on the best estimate required to
settle the obligation of the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect the current
best estimates.
Contingent Liabilities are disclosed unless the possibility of outflow
of resources is remote. Contingent Assets are neither recognised nor
disclosed in the Financial Statements.
R. Inter unit Transfer :
a) Inter unit transfers of goods for internal use as captive
consumption are not shown in the Profit & Loss Account.
b) Any unrealised profit on unsold stocks is ignored while valuing
inventories.
S. Cash Flow Statement :
The Cash Flow Statement is prepared by the "indirect method" set out in
Accounting Standard 3 on "Cash Flow Statements" and presents the cash
flows by operating, investing and financing activities of the Company.
Cash and Cash equivalents presented in the Cash Flow Statement consist
of cash in hand and demand deposits with banks.
T. EARNINGS PER EQUITY SHARE :
The earnings considered in ascertaining the Companies earning per
equity share comprise net Profit After Tax, Preference Dividend, tax on
preference dividend and includes the post tax effect of any
extra-ordinary/exceptional item is considered. The number of equity
shares used in computing basic earnings per equity share is the
weighted average number of shares outstanding during the year.
The number of equity shares used in computing diluted earnings per
share comprises the weighted average number of equity shares considered
for deriving basic earnings per equity share and also the weighted
average number of equity shares that could have been issued on the
conversion of all dilutive potential equity shares.
Mar 31, 2014
A. Basis of Accounting :
The Financial Statements are prepared on the basis of a going concern
in accordance with the relevant presentation requirements of the
Companies Act, 1956 under the historical cost convention and on accrual
basis.
B. Use of Estimates :
The preparation of the financial statements is in accordance with
generally Accepted Accounting Principles. It requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosures relating to contingent liabilities
as at the date of the financial statements and reported amounts of
revenues and expenses during the year. Actual results could differ from
these estimates and a revision to such Accounting Estimates is
recognized in the accounting period in which such a revision takes
place.
C. Revenue Recognition:
a) Sales are inclusive of income from services, excise duty, self
consumption, export incentives and net of trade discount.
b) Revenue on Construction Contracts are recognized under percentage of
Completion Method. The state of completion is determined on the basis
of completion of physical proportion of the contract work upto the date
of reporting as certified by qualified valuer.
D. Fixed Assets :
Fixed Assets are stated at cost less depreciation. Rollover Charges on
Foreign Exchange Contracts of foreign currency liabilities for
acquisition of fixed assets are added/deducted to the cost of the
assets.
E. Impairment of Assets :
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting periods is
reversed if there has been change in the estimate of recoverable
amount.
F. Capital Work-in-Progress :
Capital Works-in-Progress includes Building under Construction,
Machinery in Stock/under installation/ in transit,
construction/erection materials, advances for construction, erection
and Machinery and preoperative expenses pending for allocation. No
depreciation has been charged on assets which are under construction.
G. Central Value Added Tax (CENVAT) :
CENVAT claimed on Capital Goods is reduced from the cost of Plant and
Machinery. CENVAT claimed on purchases of Raw materials and other
materials is reduced from the cost of such materials.
H. Depreciation:
Depreciation on Fixed Assets is provided under the Straight Line Method
at the rates provided by Schedule XIV of the Companies Act, 1956.
Continuous Process Plants as defined in said Schedule have been taken
on technical assessment and depreciation is provided accordingly.
Depreciation on additions during the year is being calculated on
pro-rata basis from the next following month, in which such additions
were made or upto the month preceding the month of such deletion, as
the case may be. In case of lease hold land lease premium is amortized
over the lease period in equal installment.
I. Interest on Borrowings :
Borrowing cost is charged to the Profit & Loss Account for the year in
which it is incurred except for capital assets which is capitalized
till the date of commercial use of the asset.
J. Lease Rent:
The payment of lease rent for Operating Lease are recognized as an
expenditure in the Profit & Loss Account.
K. Inventories:
Stock of Raw Materials, Stores & Spares, Fuel & Packing Materials are
valued at cost or Net realizable value whichever is lower. Traded Goods
and Finished Goods are valued at lower of Cost or net realizable value.
Stock of Scrap is valued at net realizable value. The cost of material
is arrived on First in First Out basis.
L. Foreign Currency Transactions :
Foreign exchange transactions are recorded at the rates of exchange on
the date of the respective transaction. Assets and Liabilities
designated in Foreign Currency are converted into Rupees at the rates
of exchange prevailing as on the Balance Sheet date or at the rate
contracted and corresponding adjustment made to the relevant Income,
Expenditure and Assets.
M. Investments:
Investments are valued at cost and since the investments are of long
term nature no provision has been made towards temporary diminution in
the market value of such investments.
N. Taxation:
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company. Deferred tax
assets and liabilities are recognized for future tax consequences
attributable to the timing differences that result between the profit
offered for income tax and the profit as per the financial statements.
O. Retirement benefits:
a) Contribution to Provident Fund and Family Pension Fund are accrued
in accordance with applicable statute and deposited with appropriate
authorities.
b) Leave Encashment is determined using actuarial valuation carried out
as at Balance Sheet date. Actuarial gains and losses are recognized in
full in Profit and Loss Account for the year in which they occur.
c) The Company''s liability towards gratuity is determined on the basis
of year end actuarial valuation done by an independent actuary. The
actuarial gains or losses determined by the actuary are recognized in
the Profit and Loss Account as income or expenses.
Segment Accounting:
P. The Company has disclosed Business Segment as the Primary Segment.
Segments have been identified taking into account the type of products,
the differing risk and returns and the Internal Reporting System. The
various Segments identified by the Company comprised as under :
i) Manufacturing (G.P. / G.C. / C.C.L. Coils / Sheets / Lead Ingots /
Aluminium Ingots )
ii) Trading / Transmission Line
Q. Segment Accounting Policies :
Following Accounting Policies have been followed by the Company for the
Segment Reporting :
a) Segment Revenue includes Sales and Other Income directly
identifiable with/allocable to Segment.
b) Expenses that are directly identifiable with/allocable to Segments
are considered for determining the Segment Results. The expenses, which
relate to the Company as a whole and not allocable to Segment are
included under unallocable expenses.
c) Income which relates to the Company as a whole and not allocable to
Segment Is included under unallocable income.
d) i) Segment Assets includes those assets directly identifiable with
respective Segments and employed by a Segment in its operating
activities, but does not includes Income Tax Assets.
ii) Segment Liabilities includes those liabilities directly
identifiable with respective Segments and Operating Liabilities that
results from operating activities of a Segment, but does not include
Income Tax Liabilities and Financial Liabilities.
iii) Unallocable Corporate Assets and Liabilities represents the assets
and liabilities that relate to the Company as a whole and not allocable
to any Segment.
R. Provisions, Contingent Liabilities and Contingent Assets :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
Financial Statements.
S. Inter unit Transfer:
a) Inter unit transfers of goods for internal use as captive
consumption are not shown in the Profit & Loss Account.
b) Any Unrealized profit on unsold stocks is ignored while valuing
inventories.
T. Cash Flow Statement:
The Cash Flow Statement is prepared by the "indirect method" set out in
Accounting Standard 3 on "Cash Flow Statements" and presents the cash
flows by operating, investing and financing activities of the Company.
Cash and Cash equivalents presented in the Cash Flow Statement consist
of cash in hand and demand deposits with banks.
Mar 31, 2013
A. Basis of Accounting :
The Financial Statements are prepared on the basis of a going concern
in accordance with the relevant presentation requirements of the
Companies Act, 1956 under the historical cost convention and on accrual
basis.
B. Use of Estimates :
The preparation of the financial statements is in accordance with
generally Accepted Accounting Principals. It requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosures relating to contingent liabilities
as at the date of the financial statements and reported amounts of
revenues and expenses during the year. Actual results could differ from
these estimates and a revision to such Accounting Estimates is
recognized in the accounting period in which such a revision takes
place.
C. Revenue Recognition :
a) Sales are inclusive of income from services, excise duty, self
consumption, export incentives and net of trade discount.
b) Revenue on Construction Contracts are recognized under percentage of
Completion Method. The state of completion is determined on the basis
of completion of physical proportion of the contract work upto the date
of reporting as certified by qualified valuer.
D. Fixed Assets :
Fixed Assets are stated at cost less depreciation. Rollover Charges on
Foreign Exchange Contracts of foreign currency liabilities for
acquisition of fixed assets are added/deducted to the cost of the
assets.
E. Impairment of Assets :
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting periods is
reversed if there has been change in the estimate of recoverable
amount.
F. Capital Work-in-Progress :
Capital Works-in-Progress includes Building under Construction,
Machinery in Stock/under installation/ in transit,
construction/erection materials, advances for construction, erection
and Machinery and preoperative expenses pending for allocation. No
depreciation has been charged on assets which are under construction.
G. Central Value Added Tax (CENVAT) :
CENVAT claimed on Capital Goods is reduced from the cost of Plant and
Machinery. CENVAT claimed on purchases of Raw materials and other
materials is reduced from the cost of such materials.
H. Depreciation :
Depreciation on Fixed Assets is provided under the Straight Line Method
at the rates provided by Schedule XIV of the Companies Act, 1956.
Continuous Process Plants as defined in said Schedule have been taken
on technical assessment and depreciation is provided accordingly.
Depreciation on additions during the year is being calculated on
pro-rata basis from the next following month, in which such additions
were made or upto the month preceding the month of such deletion, as
the case may be. In case of lease hold land lease premium is amortized
over the lease period in equal installment.
I. Interest on Borrowings :
Borrowing cost is charged to the Profit & Loss Account for the year in
which it is incurred except for capital assets which is capitalized
till the date of commercial use of the asset.
J. Lease Rent :
The payment of lease rent for Operating Lease are recognized as an
expenditure in the Profit & Loss Account.
K. Inventories :
Stock of Raw Materials, Stores & Spares, Fuel & Packing Materials are
valued at cost or Net realizable value whichever is lower. Traded Goods
and Finished Goods are valued at lower of Cost or net realizable value.
Stock of Scrap is valued at net realizable value. The cost of material
is arrived on First in First Out basis.
L. Foreign Currency Transactions :
Foreign exchange transactions are recorded at the rates of exchange on
the date of the respective transaction. Assets and Liabilities
designated in Foreign Currency are converted into Rupees at the rates
of exchange prevailing as on the Balance Sheet date or at the rate
contracted and corresponding adjustment made to the relevant Income,
Expenditure and Assets.
M. Investments :
Investments are valued at cost and since the investments are of long
term nature no provision has been made towards diminution in the market
value of such investments.
N. Taxation :
The current charge for income taxes is calculated in accordance with
the relevant tax regulations applicable to the Company. Deferred tax
assets and liabilities are recognized for future tax consequences
attributable to the timing differences that result between the profit
offered for income tax and the profit as per the financial statements.
O. Retirement benefits :
a) Contribution to Provident Fund and Family Pension Fund are accrued
in accordance with applicable statute and deposited with appropriate
authorities.
b) Leave Encashment is determined using actuarial valuation carried out
as at Balance Sheet date. Actuarial gains and losses are recognized in
full in Profit and Loss Account for the year in which they occur.
c) The Company''s liability towards gratuity is determined on the basis
of year end actuarial valuation done by an independent actuary. The
actuarial gains or losses determined by the actuary are recognized in
the Profit and Loss Account as income or expenses.
Segment Accounting :
P. The Company has disclosed Business Segment as the Primary Segment.
Segments have been
identified taking into account the type of products, the differing risk
and returns and the Internal Reporting System. The various Segments
identified by the Company comprised as under :
i) Manufacturing (G.P. / G.C. / C.C.L. Coils / Sheets / Lead Ingots /
Aluminium Ingots )
ii) Trading / Transmission Line
Q. Segment Accounting Policies :
Following Accounting Policies have been followed by the Company for the
Segment Reporting :
a) Segment Revenue includes Sales and Other Income directly
identifiable with/allocable to Segment.
b) Expenses that are directly identifiable with/allocable to Segments
are considered for determining the Segment Results. The expenses, which
relate to the Company as a whole and not allocable to Segment are
included under unallocable expenses.
c) Income which relates to the Company as a whole and not allocable to
Segment is included under unallocable income.
d) i) Segment Assets includes those assets directly identifiable with
respective Segments and employed by a Segment in its operating
activities, but does not includes Income Tax Assets.
ii) Segment Liabilities includes those liabilities directly
identifiable with respective Segments and Operating Liabilities that
results from operating activities of a Segment, but does not include
Income Tax Liabilities and Financial Liabilities.
iii) Unallocable Corporate Assets and Liabilities represents the assets
and liabilities that relate to the Company as a whole and not allocable
to any Segment.
R. Provisions, Contingent Liabilities and Contingent Assets :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
Financial Statements.
S. Inter unit Transfer :
a) Inter unit transfers of goods for internal use as captive
consumption are not shown in the Profit & Loss Account.
b) Any Unrealized profit on unsold stocks is ignored while valuing
inventories.
T. Cash Flow Statement :
The Cash Flow Statement is prepared by the "indirect method" set out in
Accounting Standard 3 on "Cash Flow Statements" and presents the cash
flows by operating, investing and financing activities of the Company.
Cash and Cash equivalents presented in the Cash Flow Statement consist
of cash in hand and demand deposits with banks.
Mar 31, 2012
A. Basis of Accounting :
The Financial Statements are prepared on the basis of a going concern
in accordance with the relevant presentation requirements of the
Companies Act, 1956 under the historical cost convention and on accrual
basis.
B. Use of Estimates :
The preparation of the financial statements is in accordance with
generally Accepted Accounting Principals. It requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosures relating to contingent liabilities
as at the date of the financial statements and reported amounts of
revenues and expenses during the year. Actual results could differ from
these estimates and a revision to such Accounting Estimates is
recognized in the accounting period in which such a revision takes
place.
C. Revenue Recognition :
a) Sales are inclusive of income from services, excise duty, self
consumption, export incentives and net of trade discount.
b) Revenue on Construction Contracts are recognized under percentage of
Completion Method. The state of completion is determined on the basis
of completion of physical proportion of the contract work upto the date
of reporting as certified by qualified valuer.
D. Fixed Assets :
Fixed Assets are stated at cost less depreciation. Rollover Charges on
Foreign Exchange Contracts of foreign currency liabilities for
acquisition of fixed assets are added/deducted to the cost of the
assets.
E. Impairment of Assets :
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting periods is
reversed if there has been change in the estimate of recoverable
amount.
F. Capital Work-in-Progress :
Capital Works-in-Progress includes Building under Construction,
Machinery in Stock/under installation/ in transit,
construction/erection materials, advances for construction, erection
and Machinery and preoperative expenses pending for allocation. No
depreciation has been charged on assets which are under construction.
G. Central Value Added Tax (CENVAT) :
CENVAT claimed on Capital Goods is reduced from the cost of Plant and
Machinery. CENVAT claimed on purchases of Raw materials and other
materials is reduced from the cost of such materials.
H. Depreciation :
Depreciation on Fixed Assets is provided under the Straight Line Method
at the rates provided by Schedule XIV of the Companies Act, 1956.
Continuous Process Plants as defined in said Schedule have been taken
on technical assessment and depreciation is provided accordingly.
Depreciation on additions during the year is being calculated on
pro-rata basis from the next following month, in which such additions
were made or upto the month preceding the month of such deletion, as
the case may be.
I. Interest on Borrowings :
Borrowing cost is charged to the Profit & Loss Account for the year in
which it is incurred except for capital assets which is capitalized
till the date of commercial use of the asset.
J. Lease Rent :
The payment of lease rent for Operating Lease are recognized as an
expenditure in the Profit & Loss Account.
K. Inventories :
Stock of Raw Materials, Stores & Spares, Fuel & Packing Materials are
valued at cost or Net realizable value whichever is lower. Traded Goods
and Finished Goods are valued at lower of Cost or net realizable value.
Stock of Scrap is valued at net realizable value. The cost of material
is arrived on First in First Out basis.
L. Foreign Currency Transactions :
Foreign exchange transactions are recorded at the rates of exchange on
the date of the respective transaction. Assets and Liabilities
designated in Foreign Currency are converted into Rupees at the rates
of exchange prevailing as on the Balance Sheet date or at the rate
contracted and corresponding adjustment made to the relevant Income,
Expenditure and Assets.
M. Investments :
Investments are valued at cost and since the investments are of long
term nature no provision has been made towards diminution in the market
value of such investments.
N. Taxation :
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the Company. Deferred tax assets
and liabilities are recognized for future tax consequences attributable
to the timing differences that result between the profit offered for
income tax and the profit as per the financial statements.
O. Retirement benefits :
a) Contribution to Provident Fund and Family Pension Fund are accrued
in accordance with applicable statute and deposited with appropriate
authorities.
b) Leave Encashment is determined using actuarial valuation carried out
as at Balance Sheet date. Actuarial gains and losses are recognized in
full in Profit and Loss Account for the year in which they occur.
c) The Company's liability towards gratuity is determined on the basis
of year end actuarial valuation done by an independent actuary. The
actuarial gains or losses determined by the actuary are recognized in
the Profit and Loss Account as income or expenses.
Segment Accounting :
P. The Company has disclosed Business Segment as the Primary Segment.
Segments have been identified taking into account the type of products,
the differing risk and returns and the Internal Reporting System. The
various Segments identified by the Company comprised as under :
i) Manufacturing (G.P. / G.C. / C.C.L. Coils / Sheets / Lead Ingots /
Aluminium Ingots )
ii) Trading / Transmission Line
Q. Segment Accounting Policies :-
Following Accounting Policies have been followed by the Company for the
Segment Reporting :
a) Segment Revenue includes Sales and Other Income directly
identifiable with/allocable to Segment.
b) Expenses that are directly identifiable with/allocable to Segments
are considered for determining the Segment Results. The expenses, which
relate to the Company as a whole and not allocable to Segment are
included under unallocable expenses.
c) Income which relates to the Company as a whole and not allocable to
Segment is included under unallocable income.
d) i) Segment Assets includes those assets directly identifiable with
respective Segments and employed by a Segment in its operating
activities, but does not includes Income Tax Assets.
ii) Segment Liabilities includes those liabilities directly
identifiable with respective Segments and Operating Liabilities that
results from operating activities of a Segment, but does not include
Income Tax Liabilities and Financial Liabilities.
iii) Unallocable Corporate Assets and Liabilities represents the assets
and liabilities that relate to the Company as a whole and not allocable
to any Segment.
R. Contingent Liabilities :
Contingent Liabilities as defined in Accounting Standard 29 on
"Provisions, Contingent Liabilities and Contingent Assets" are
disclosed by way of notes to the accounts.
S. Inter unit Transfer :
a) Inter unit transfers of goods for internal use as captive
consumption are not shown in the Profit & Loss Account.
b) Any Unrealized profit on unsold stocks is ignored while valuing
inventories.
T. Cash Flow Statement :
The Cash Flow Statement is prepared by the "indirect method" set out in
Accounting Standard 3 on "Cash Flow Statements" and presents the cash
flows by operating, investing and financing activities of the Company.
Cash and Cash equivalents presented in the Cash Flow Statement consist
of cash in hand and demand deposits with banks.
Mar 31, 2011
1. Basis of Accounting :
The Financial Statements are prepared on the basis of a going concern
in accordance with the relevant presentation requirements of the
Companies Act, 1956 under the historical cost convention and on accrual
basis.
2. Use of Estimates :
The preparation of the financial statements is in accordance with
generally Accepted Accounting Principals. It requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosures relating to contingent liabilities
as at the date of the financial statments and reported amounts of
revenues and expenses during the year. Actual results could differ from
these estimates and a revision to such Accounting Estimates is
recognized in the accounting period in which such a revision takes
place.
3. Revenue Recognition :
a) Sales are inclusive of income from services, excise duty, self
consumption, export incentives and net of trade discount.
b) Revenue on Construction Contracts are recognized under percentage of
Completion Method. The state of completion is determined on the basis
of completion of physical proportion of the contract work upto the date
of reporting as certified by qualified valuer.
4.1 Fixed Assets :
Fixed Assets are stated at cost less depreciation. Rollover Charges on
Foreign Exchange Contracts of foreign currency liabilities for
acquisition of fixed assets are added/deduction to the cost of the
assets.
4.2 Impairment of Assets :
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount.
An impairment loss is charged to the Profit & Loss Account in the year
in which an asset is identified as impaired. The impairment loss
recognized in prior accounting periods is reversed if there has been
change in the estimate of recoverable amount.
4.3 Capital Work-in-Progress :
Capital Works-in-Progress includes Building under Construction,
Machinery in Stock/under installation/ in transit,
construction/erection materials, advances for construction, erection
and Machinery and preoperative expenses pending for allocation. No
depreciation has been charged on assets which are under construction.
4.4 Central Value Added Tax (CENVAT) :
CENVAT claimed on Capital Goods is reduced from the cost of Plant and
Machinery. CENVAT claimed on purchases of Raw materials and other
materials is reduced from the cost of such materials.
5. Depreciation :
Depreciation on Fixed Assets is provided under the Straight Line Method
at the rates provided by Schedule XIV to the Companies Act, 1956.
Continuous Process Plants as defined in said Schedule, have been taken
on technical assessment and depreciation is provided accordingly.
Depreciation on additions during the year is being calculated on
pro-rata basis from the next following month, in which such additions
were made or upto the month preceding the month of such deletion, as
the case may be.
6. Interest on Borrowings :
Borrowing cost is charged to the Profit & Loss Account for the year in
which it is incurred except for capital assets which is capitalised
till the date of commercial use of the asset.
7. Lease Rent :
The payment of lease rent for Operating Lease are recognized as an
expenditure in the Profit & Loss Account.
8. Inventories :
Stock of Raw Materials, Stores & Spares, Fuel & Packing Materials are
valued at cost or Net realizable value whichever is lower. Traded Goods
and Finished Goods are valued at lower of Cost or net realizable value.
Stock of Scrap is valued at net realizable value. The cost of material
is arrived on First in First Out basis.
9. Foreign Currency Transactions :
Foreign exchange transactions are recorded at the rates of exchange on
the dates of the respective transactions. Assets and Liabilities
designated in Foreign currency are converted into Rupees at the rates
of exchange prevailing as on the Balance Sheet date or at the rate
contracted and corresponding adjustment made to the relevant Income,
Expenditure and Assets.
10. Investments :
Investments are valued at cost and since the investment are of long
term nature no provision has been made towards diminution in the market
value of such investments.
11. Taxation :
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the Company. Deferred tax assets
and liabilities are recognized for future tax consequences attributable
to the timing differences that result between the profit offered for
income tax and the profit as per the financial statements.
12. Retirement benefits :
a) Contributions to Provident Fund and Family Pension Fund are accrued
in accordance with applicable statute and deposited with appropriate
authorities.
b) Leave Encashment is determined using actuarial valuation carried out
as at Balance Sheet date. Actuarial gains and losses are recognized in
full in Profit and Loss Account for the year in which they occur.
c) The Company's liabilities towards employees gratuity is determined
on the basis of year end actuarial valuation done by an independent
actuary. The actuarial gains or losses determined by the actuary are
recognised in the Profit and Loss Account as income or expenses.
13. Segment Accounting :
13.1The Company has disclosed Business Segment as the Primary Segment.
Segments have been identified taking into account the type of products,
the differing risk and returns and the Internal Reporting System. The
various Segments identified by the Company comprised as under :
i) Manufacturing (G.P. / G.C. / C.C.L. Coils / Sheets / Lead Ingots /
Aluminium Ingots )
ii) Trading / Transmission Line
13.2 Segment Accounting Policies :-
Following Accounting Policies have been followed by the Company for the
Segment Reporting :
a) Segment Revenue includes Sales and Other Income directly
identifiable with/allocable to Segment.
b) Expenses which are directly identifiable with/allocable to Segments
are considered for determining the Segment Results. The expenses which
relate to the Company as a whole and not allocable to Segment are
included under unallocable expenses.
c) Income which relates to the Company as a whole and not allocable to
Segment is included under unallocable income.
d) i) Segment Assets includes those assets which are directly
identifiable with respective Segments and employed by a Segment in its
operating activities but does not includes Income Tax Assets.
ii) Segment Liabilities includes those liabilities which are directly
identifiable with respective Segments and Operating Liabilities that
results from operating activities of a Segment but does not include
Income Tax Liabilities and Financial Liabilities.
iii) Unallocable Corporate Assets and Liabilities represents the assets
and liabilities that relate to the Company as a whole and not allocable
to any Segment.
14. Contingent Liabilities :
Contingent Liabilities as defined in Accounting Standard 29 on
"Provisions, Contingent Liabilities and Contingent Assets" are
disclosed by way of notes to the accounts.
15. Inter unit Transfer :
a) Inter unit transfers of goods for internal use as captive
consumption are not shown in the Profit & Loss Account.
b) Any Unrealized profit on unsold stocks is ignored while valuing
inventories.
16. Cash Flow Statement :
The Cash Flow Statement is prepared by the "indirect method" set out in
Accounting Standard 3 on "Cash Flow Statements" and presents the cash
flows by operating, investing and financing activities of the Company.
Cash and Cash equivalents presented in the Cash Flow Statement consist
of cash on hand and demand deposits with banks.
Mar 31, 2010
1. Basis of Accounting :
The Financial Statements are prepared on the basis of a going concern
in accordance with the relevant presentation requirements of the
Companies Act, 1956 under the historical cost convention and on accrual
basis.
2. Use of Estimates :
The preparation of the financial statements is in accordance with
generally Accepted Accounting Principals. It requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosures relating to contingent liabilities
as at the date of the financial statments and reported amounts of
revenues and expenses during the year. Actual results could differ from
these estimates and a revision to such Accounting Estimates is
recognized in the accounting period in which such a revision takes
place.
3. Revenue Recognition :
a) Sales are inclusive of income from services, excise duty, self
consumption, export incentives and net of trade discount.
b) Revenue on Construction Contracts are recognized under percentage of
Completion Method. The state of completion is determined on the basis
of completion of physical proportion of the contract work upto the date
of reporting as certified by qualified valuer.
4.1 Fixed Assets :
Fixed Assets are stated at cost less depreciation. Rollover Charges on
Foreign Exchange Contracts of foreign currency liabilities for
acquisition of fixed assets are added/deduction to the cost of the
assets.
4.2 Impairment of Assets :
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount.
An impairment loss is charged to the Profit & Loss Account in the year
in which an asset is identified as impaired. The impairment loss
recognized in prior accounting periods is reversed if there has been
change in the estimate of recoverable amount.
4.3 Capital Work-in-Progress :
Capital Works-in-Progress includes Building under Construction,
Machinery in Stock/under installation/ in transit,
construction/erection materials, advances for construction, erection
and Machinery and preoperative expenses pending for allocation. No
depreciation has been charged on assets which are under construction.
4.4 Central Value Added Tax (CENVAT) :
CENVAT claimed on Capital Goods is reduced from the cost of Plant and
Machinery. CENVAT claimed on purchases of Raw materials and other
materials is reduced from the cost of such materials.
5. Depreciation :
Depreciation on Fixed Assets is provided under the Straight Line Method
at the rates provided by Schedule XIV to the Companies Act, 1956.
Continuous Process Plants as defined in said Schedule, have been taken
on technical assessment and depreciation is provided accordingly.
Depreciation on additions during the year is being calculated on
pro-rata basis from the next following month, in which such additions
were made or upto the month preceding the month of such deletion, as
the case may be.
6. Interest on Borrowings :
Borrowing cost is charged to the Profit & Loss Account for the year in
which it is incurred except for capital assets which is capitalised
till the date of commercial use of the asset.
7. Lease Rent :
The payment of lease rent for Operating Lease are recognized as an
expenditure in the Profit & Loss Account.
8. Inventories :
Stock of Raw Materials, Stores & Spares, Fuel & Packing Materials are
valued at cost or Net realizable value whichever is lower. Traded Goods
and Finished Goods are valued at lower of Cost or net realizable value.
Stock of Scrap is valued at net realizable value. The cost of material
is arrived on First in First Out basis.
9. Foreign Currency Transactions :
Foreign exchange transactions are recorded at the rates of exchange on
the dates of the respective transactions. Assets and Liabilities
designated in Foreign currency are converted into Rupees at the rates
of exchange prevailing as on the Balance Sheet date or at the rate
contracted and corresponding adjustment made to the relevant Income,
Expenditure and Assets.
10. Investments :
Investments are valued at cost and since the investment are of long
term nature no provision has been made towards diminution in the market
value of such investments.
11. Taxation :
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the Company. Deferred tax assets
and liabilities are recognized for future tax consequences attributable
to the timing differences that result between the profit offered for
income tax and the profit as per the financial statements.
12. Retirement benefits :
a) Contributions to Provident Fund and Family Pension Fund are accrued
in accordance with applicable statute and deposited with appropriate
authorities.
b) Leave Encashment is determined using actuarial valuation carried out
as at Balance Sheet date. Actuarial gains and losses are recognized in
full in Profit and Loss Account for the year in which they occur.
c) The CompanyÃs liabilities towards employees gratuity is determined
on the basis of year end actuarial valuation done by an independent
actuary. The actuarial gains or losses determined by the actuary are
recognised in the Profit and Loss Account as income or expenses.
13. Segment Accounting :
13.1The Company has disclosed Business Segment as the Primary Segment.
Segments have been identified taking into account the type of products,
the differing risk and returns and the Internal Reporting System. The
various Segments identified by the Company comprised as under : i)
Manufacturing (G.P. / G.C. / C.C.L. Coils / Sheets )
ii) Trading / Transmission Line
13.2Segment Accounting Policies :- Following Accounting Policies have
been followed by the Company for the Segment Reporting :
a) Segment Revenue includes Sales and Other Income directly
identifiable with/allocable to Segment.
b) Expenses which are directly identifiable with/allocable to Segments
are considered for determining the Segment Results. The expenses which
relate to the Company as a whole and not allocable to Segment are
included under unallocable expenses.
c) Income which relates to the Company as a whole and not allocable to
Segment is included under unallocable income.
d) i) Segment Assets includes those assets which are directly
identifiable with respective Segments and employed by a Segment in its
operating activities but does not includes Income Tax Assets.
ii) Segment Liabilities includes those liabilities which are directly
identifiable with respective Segments and Operating Liabilities that
results from operating activities of a Segment but does not include
Income Tax Liabilities and Financial Liabilities.
iii) Unallocable Corporate Assets and Liabilities represents the assets
and liabilities that relate to the Company as a whole and not allocable
to any Segment.
14. Contingent Liabilities :
Contingent Liabilities as defined in Accounting Standard 29 on
"Provisions, Contingent Liabilities and Contingent Assets" are
disclosed by way of notes to the accounts.
15. Inter unit Transfer :
a) Inter unit transfers of goods for internal use as captive
consumption are not shown in the Profit & Loss Account.
b) Any Unrealized profit on unsold stocks is ignored while valuing
inventories.
16. Cash Flow Statement :
The Cash Flow Statement is prepared by the "indirect method" set out in
Accounting Standard 3 on "Cash Flow Statements" and presents the cash
flows by operating, investing and financing activities of the Company.
Cash and Cash equivalents presented in the Cash Flow Statement consist
of cash on hand and demand deposits with banks.