Mar 31, 2015
COMPANY OVERVIEW :
Shri Bajrang Alloys Limited is a Public Limited Company incorporated
under the provision of the Companies Act 1956, having its Regd. Office
in Raipur. The Company has listed its share in Bombay Stock of Exchange
(BSE) of India. The Company is mainly engaged in manufacturing of
Structural Steels like Angle, Channel, Joist/Beam, Round etc.
BASIS OF PREPARATION:
(i) The financial statements have been prepared on Historical Cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 and the
applicable Accounting Standards in India.
(ii) The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis except those with significant
uncertainties.
(iii) The accounting policies have been consistently applied by the
Company.
USE OF ESTIMATES :
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues & expenses during the reported period. Although
these statements are based up on management's best knowledge of current
events and actions, actual results could differ from these statements.
Difference between the actual results and the estimates are recognized
in the period in which the results are known / materialized.
FIXED ASSETS :
Fixed Assets are stated at acquisition cost less depreciation. Cost
includes related taxes, duties, freight, insurance etc., attributable
to acquisition and installation of assets and borrowing cost incurred
up to the date of commencing operations, but excludes duties and taxes
that are recoverable subsequently from the taxing authorities.
DEPRECIATION :
(i) Depreciation is provided based on useful life of the assets and
scrap value (5% of the original cost) as prescribed in Schedule II to
the Companies Act, 2013 except, in respect of Rolls, where useful life
taken for one year only as per the technical advice.
(ii) Leasehold land is amortized over the period of lease.
(iii) Depreciation on Fixed Assets added / disposed off during the year
is provided on pro-rata basis
with reference to the date of addition / disposal. (iv) Expenditure of
amount below Rs. 5000 /- had been written off in full.
INVESTMENTS :
(i) Long Term Investments are stated at cost. A provision for
diminution is made to recognize a decline, other than temporary, in the
value of long term investments.
(ii) Current Investments are stated at lower of cost and fair value.
INVENTORIES : Inventories are valued in following manner:
(i) Items of inventories are measured at lower of cost and net
realizable value after providing for obsolescence, if any.
(ii) Cost of inventories of finished goods comprises of cost of
purchase, cost of conversion and other costs including manufacturing
overheads incurred in bringing them to their respective present
location and condition.
(iii) Cost of Finished Goods are determined on FIFO basis and
By-products are valued at net realizable value.
(iv) Cost of raw materials, stores and consumables, trading and other
products are determined on FIFO basis.
CONTINGENT LIABILITIES :
Liabilities which are material and whose future outcome cannot be
reasonably ascertained are treated as contingent and not provided for
and disclosed by way of notes to the accounts.
REVENUE RECOGNITION :
(i) Mercantile method of accounting has been employed unless otherwise
specifically stated elsewhere in this schedule. However where the
amount is immaterial / negligible and / or establishment of accrual /
determination of amount is not possible, no entry is made for accruals.
(ii) Sale of Products - Revenue is recognized when the significant
risks and rewards of ownership of the goods have passed to the buyer.
Excise Duty and Value Added Tax deducted from turnover (gross) is the
amount that is included in the amount of turnover (gross) and not the
entire amount of liability raised during the year.
(iii) Bonus and Leave Encashment are recognized as per Cash Basis.
FOREIGN CURRENCY TRANSACTIONS :
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing at the time of the
transaction.
(ii) Any income or expense on account of exchange difference on
settlement of Monetary items is recognized in the Profit & Loss
Account.
(iii) In respect of transactions covered by Forward Foreign Exchange
Contracts, the difference between the forward rate and exchange rate at
the inception of contract is recognized as income or expenses over the
life of the contract except for contracts relating to liabilities
incurred for purchase of Fixed Assets, the difference thereof is
adjusted in the carrying amount of respective Fixed Assets.
BORROWING COST :
Interest and other costs in connection with the borrowing of the funds
to the extent related/attributed to the acquisition/construction of
fixed assets are capitalized only with respect to qualifying fixed
assets i.e. those which take substantial period of time to get ready
for its intended use. All other borrowing costs are charged to Profit
and Loss account.
EMPLOYEES RETIREMENT BENEFITS:
(i) Defined Contribution plan
Company's contribution to Provident Fund and Employee State Insurance
are charged to Profit and Loss Account. Value of encashable leave are
encased during the year and charged to Profit & Loss Account. There is
no other obligation other than the contribution payable to respective
authorities.
(ii) Defined Benefit plan
Company's Liabilities towards gratuity are recognized as an expenses in
Profit & Loss Account for the year in which the employee has rendered
services. The expenses determined using actuarial valuation techniques
& assumptions. Actuarial gain or losses are charged to profit & loss
account.
PROVISIONS :
Provisions are recognized, where the Company has any legal or
constructive obligation or where realizable estimate can be made for
the amount of the obligation and as a result of past events, for which
it is probable that an outflow of economic benefits will be required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
IMPAIRMENT OF ASSETS :
The Company assesses at each Balance Sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its estimated
recoverable amount and the amount of such impairment loss is charged to
profit & loss account. If at the Balance Sheet date there is an
indication that previously assessed impairment loss no longer exists,
then such loss is reversed and the asset is restated to that effect.
TURNOVER :
Gross Turnover includes excise duty and sales tax/VAT. Excise duty and
VAT amount have been deducted from the Turnover (Gross) is the amount
actually incurred with related to sales during the year and not the
entire amount of the liability arising during the year.
EXCISE DUTY :
Excise duty expenses are accounted for at the time of removal of goods
from the factory. Total excise expenses includes the amount of reversal
of CENVAT amount and penalty, if any, on order passed during the year.
CENVAT Credit relating to raw materials/components are debited under
current assets for availing credit against CENVAT and credited to
respective materials/component account.
SEGMENT REPORTING :
The Company has only one primary segment, i.e. Structural Rolling Mill.
As such there is no other reportable segment as defined by Accounting
Standard - 17 "Segment Reporting" issued by the Institute of Chartered
Accountants of India. There is no reportable Geographical Segment
either.
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 difference" between book profit and
taxable profit is accounted for using the tax rates and laws that have
been enacted or substantially enacted as on the Balance Sheet date. The
Deferred Tax Asset is recognized and carried forward only to the extent
that there is reasonable certainty that the asset will be realized in
future.
EARNING PER SHARE :
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period.
In accordance with "Accounting Standard  22" issued by the "Institute
of Chartered Accountants of India", the Company has recognized net of
deferred tax assets and deferred tax liability amounting to Rs.
3745734/- as on 31/03/2015 under a separate head "Deferred Tax
Liability". Deferred tax Expenses for the year amounting to Rs.
(-63333)/- has been recognized in the Profit & Loss Account.
** As clarified by management all above Mentioned Unsecured loan
treated as Long term.
*** Maturity Profile of Unsecured Term Loans from Financial
Institutions & Banks are as set out below :
Note : There is no default, continuing or otherwise, as at the balance
sheet date, in repayment of any of the above loans.
* In respect of Fixed Assets acquired on finance lease as per
Accounting Standard on Leases (AS-19), the minimum lease rentals
outstanding as on 31st March, 2015 are as follows:
Defined Benefit Plan Gratuity
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service
or part thereof in excess of 6 months and its payable on retirement /
termination/ resignation. The benefit vests on the employees after
completion of 5 Years of service. The gratuity liability has not been
externally funded. The present value of obligation is determined based
on actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build
up the final obligation.
Since the entire amount of plan obligation is unfunded, therefore
change in the fair value of plan assets are not given. Further the
entire amount of plan obligation is unfunded, therefore categories of
plan asset as a percentage of the fair value of total plan assets and
company's expected contribution to the plan assets in the next year is
not given.
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering
several applicable factors, mainly the composition of Plan assets held,
assessed risks, historical results of return on plan assets and the
Company's policy for plan assets management.
Leave Encashment
The obligation for leave encashment is recognized during the year of
Rs.146206/- (P.Y.Rs.160864/-) , is equivalent to one month salary and
charged to Profit & Loss Account
Mar 31, 2014
BASIS OF PREPARATION:
(i) The financial statements have been prepared on Historical Cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 and the
applicable Accounting Standards in India.
(ii) The company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis except those with significant
uncertainties.
(iii) The accounting policies have been consistently applied by the
company.
USE OF ESTIMATES :
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues & expenses during the reported period. Although
these statements are based up on management''s best knowledge of current
events and actions, actual results could differ from these statements.
Difference between the actual results and the estimates are recognised
in the period in which the results are known / materialised.
FIXED ASSETS :
Fixed Assets are stated at acquisition cost less depreciation. Cost
includes related taxes, duties, freight, insurance etc., attributable
to acquisition and installation of assets and borrowing cost incurred
up to the date of commencing operations, but excludes duties and taxes
that are recoverable subsequently from the taxing authorities.
DEPRECIATION :
(i) Depreciation on Fixed Assets has been provided on "Straight Line
Basis" at the rates and in the manner prescribed in Schedule - XIV of
the Companies Act, 1956.
(ii) Leasehold land is amortised over the period of lease.
(iii) Depreciation on Fixed Assets added / disposed off during the year
is provided on pro-rata basis with reference to the date of addition /
disposal.
(iv) Expenditure of amount below Rs. 5000 /- had been written off in
full.
INVESTMENTS :
(i) Long Term Investments are stated at cost. A provision for
diminution is made to recognise a decline, other than temporary, in the
value of long term investments.
(ii) Current Investments are stated at lower of cost and fair value.
INVENTORIES : Inventories are valued in following manner:
(i) Items of inventories are measured at lower of cost and net
realisable value after providing for obsolescence, if any.
(ii) Cost of inventories of finished goods comprises of cost of
purchase, cost of conversion and other costs including manufacturing
overheads incurred in bringing them to their respective present
location and condition.
(iii) Cost of Finished Goods are determined on FIFO basis and
By-products are valued at net realisable value.
(iv) Cost of raw materials, stores and Consumables, trading and other
products are determined on FIFO basis.
CONTINGENT LIABILITIES :
Liabilities which are material and whose future outcome cannot be
reasonably ascertained are treated as contingent and not provided for
and disclosed by way of notes to the accounts.
REVENUE RECOGNITION :
(i) Mercantile method of accounting has been employed unless otherwise
specifically stated elsewhere in this schedule. However where the
amount is immaterial / negligible and / or establishment of accrual /
determination of amount is not possible, no entry is made for accruals.
(ii) Sale of Products - Revenue is recognised when the significant
risks and rewards of ownership of the goods have passed to the buyer.
Excise Duty and Value Added Tax deducted from turnover (gross) is the
amount that is included in the amount of turnover (gross) and not the
entire amount of liability arised during the year.
(iii) Bonus and Leave Encashment are recognised as per Cash Basis.
FOREIGN CURRENCY TRANSACTIONS :
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing at the time of the
transaction.
(ii) Any income or expense on account of exchange difference on
settlement of Monetary items is recognised in the Profit & Loss
Account.
(iii) In respect of transactions covered by Forward Foreign Exchange
Contracts, the difference between the forward rate and exchange rate at
the inception of contract is recognized as income or expenses over the
life of the contract except for contracts relating to liabilities
incurred for purchase of Fixed Assets, the difference thereof is
adjusted in the carrying amount of respective Fixed Assets.
BORROWING COST :
Interest and other costs in connection with the borrowing of the funds
to the extent related/attributed to the acquisition/construction of
fixed assets are capitalized only with respect to qualifying fixed
assets i.e. those which take substantial period of time to get ready
for its intended use. All other borrowing costs are charged to Profit
and Loss account.
EMPLOYEES RETIREMENT BENEFITS:
(i) Defined Contribution plan
Company''s contribution to Provident Fund and Employee state Insurance
are charged to Profit and Loss Account. Value of encashable leave are
encashed during the year and charged to Profit & Loss Account. There is
no other obligation other than the contribution payable to respective
authorities.
(ii) Defined Benefit plan
Company''s Liabilities towards gratuity are recognized as an expenses in
Profit & Loss Account for the year in which the employee has rendered
services. The expenses determined using actuarial valuation techniques
& assumptions. Actuarial gain or losses are charged to profit & loss
account.
PROVISIONS :
Provisions are recognized, where the company has any legal or
constructive obligation or where realizable estimate can be made for
the amount of the obligation and as a result of past events, for which
it is probable that an outflow of economic benefits will be required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
IMPAIRMENT OF ASSETS :
The Company assesses at each balance sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its estimated
recoverable amount and the amount of such impairment loss is charged to
profit & loss account. If at the balance sheet date there is an
indication that previously assessed impairment loss no longer exists,
then such loss is reversed and the asset is restated to that effect.
TURNOVER :
Gross Turnover includes excise duty and sales tax/VAT. Excise duty and
VAT amount have been deducted from the Turnover (Gross) is the amount
actually incurred with related to sales during the year and not the
entire amount of the liability arising during the year.
EXCISE DUTY :
Excise duty expenses are accounted for at the time of removal of goods
from the factory. Total excise expenses includes the amount of reversal
of cenvat amount and penalty, if any, on order passed during the year.
CENVAT Credit relating to raw materials/components are debited under
current assets for availing credit against CENVAT and credited to
respective materials/component account.
SEGMENT REPORTING :
The company has only one primary segment, i.e. Structural Rolling Mill.
As such there is no other reportable segment as defined by Accounting
Standard - 17 "Segment Reporting" issued by the Institute of Chartered
Accountants of India. There is no reportable Geographical Segment
either.
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 difference" between book profit and
taxable profit is accounted for using the tax rates and laws that have
been enacted or substantially enacted as on the Balance Sheet date. The
Deferred Tax Asset is recognised and carried forward only to the extent
that there is reasonable certainty that the asset will be realised in
future.
EARNING PER SHARE :
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period.
Mar 31, 2013
1. BASIS OF PREPARATION:
(i) The financial statements have been prepared on Historical Cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 and the
applicable Accounting Standards in India.
(ii) The company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis except those with significant
uncertainties.
(iii) The accounting policies have been consistently applied by the
company.
2. USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues & expenses during the reported period. Although
these statements are based up on management''s best knowledge of current
events and actions, actual results could differ from these statements.
Difference between the actual results and the estimates are recognised
in the period in which the results are known / materialised.
3. FIXED ASSETS:
Fixed Assets are stated at acquisition cost less depreciation. Cost
includes related taxes, duties, freight, insurance etc., attributable
to acquisition and installation of assets and borrowing cost incurred
up to the date of commencing operations, but excludes duties and taxes
that are recoverable subsequently from the taxing authorities.
4. DEPRECIATION:
(i) Depreciation on Fixed Assets has been provided on "Straight Line
Basis" at the rates and in the manner prescribed in Schedule - XIV of
the Companies Act, 1956.
(ii) Leasehold land is amortised over the period of lease.
(iii) Depreciation on Fixed Assets added / disposed off during the year
is provided on pro-rata basis with reference to the date of addition /
disposal.
(iv) Expenditure of amount below Rs. 5000 /- had been written off in
full.
5. INVESTMENTS:
(i) Long Term Investments are stated at cost. A provision for
diminution is made to recognise a decline, other than temporary, in the
value of long term investments.
(ii) Current Investments are stated at lower of cost and fair value.
6. INVENTORIES:
Inventories are valued in following manner:
(i) Items of inventories are measured at lower of cost and net
realisable value after providing for obsolescence, if any.
(ii) Cost of inventories of finished goods comprises of cost of
purchase, cost of conversion and other costs including manufacturing
overheads incurred in bringing them to their respective present
location and condition.
(iii) Cost of Finished Goods are determined on FIFO basis and
By-products are valued at net realisable value.
(iv) Cost of raw materials, stores and consumables, trading and other
products are determined on FIFO basis.
7. CONTINGENT LIABILITIES:
Liabilities which are material and whose future outcome cannot be
reasonably ascertained are treated as contingent and not provided for
and disclosed by way of notes to the accounts.
8. REVENUE RECOGNITION:
(i) Mercantile method of accounting has been employed unless otherwise
specifically stated elsewhere in this schedule. However where the
amount is immaterial / negligible and / or establishment of accrual /
determination of amount is not possible, no entry is made for accruals.
(ii) Sale of Products - Revenue is recognised when the significant
risks and rewards of ownership of the goods have passed to the buyer.
Excise Duty and Value Added Tax deducted from turnover (gross) is the
amount that is included in the amount of turnover (gross) and not the
entire amount of liability arised during the year.
(iii) Bonus and Leave Encashment are recognised as per Cash Basis.
9. FOREIGN CURRENCY TRANSACTIONS:
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing at the time of the
transaction.
(ii) Any income or expense on account of exchange difference on
settlement of monetary items is recognised in the Profit & Loss
Account.
(iii) In respect of transactions covered by Forward Foreign Exchange
Contracts, the difference between the forward rate and exchange rate at
the inception of contract is recognized as income or expenses over the
life of the contract except for contracts relating to liabilities
incurred for purchase of Fixed Assets, the difference thereof is
adjusted in the carrying amount of respective Fixed Assets.
10. BORROWING COST:
Interest and other costs in connection with the borrowing of the funds
to the extent related/attributed to the acquisition/construction of
fixed assets are capitalized only with respect to qualifying fixed
assets i.e. those which take substantial period of time to get ready
for its intended use. All other borrowing costs are charged to Profit
and Loss account.
11. EMPLOYEES RETIREMENT BENEFITS:
(i) Defined Contribution plan
Company''s contribution to Provident Fund and Employee State Insurance
are charged to Profit and Loss Account. Value of encashable leave are
encashed during the year and charged to Profit & Loss Account. There is
no other obligation other than the contribution payable to respective
authorities.
(ii) Defined Benefit plan
Company''s Liabilities towards gratuity are recognized as an expenses in
Profit & Loss Account for the year in which the employee has rendered
services. The expenses determined using actuarial valuation techniques
& assumptions. Actuarial gain or losses are charged to profit & loss
account.
12. PROVISIONS:
Provisions are recognized, where the company has any legal or
constructive obligation or where realizable estimate can be made for
the amount of the obligation and as a result of past events, for which
it is probable that an outflow of economic benefits will be required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
13. IMPAIRMENT OF ASSETS:
The Company assesses at each balance sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its estimated
recoverable amount and the amount of such impairment loss is charged to
profit & loss account. If at the balance sheet date there is an
indication that previously assessed impairment loss no longer exists,
then such loss is reversed and the asset is restated to that effect.
14. TURNOVER:
Gross Turnover includes sales inclusive of excise duty, sales tax,
services and are adjusted for discounts.
15. EXCISE DUTY:
Excise duty expenses are accounted for at the time of removal of goods
from the factory. Total excise expenses includes the amount of reversal
of cenvat amount and penalty, if any, on order passed during the year.
CENVAT Credit relating to raw materials/components are debited under
current assets for availing credit against CENVAT and credited to
respective materials/component account.
16. SEGMENT REPORTING:
The company has only one primary segment, i.e. Structural Rolling Mill.
As such there is no other reportable segment as defined by Accounting
Standard - 17 "Segment Reporting" issued by the Institute of Chartered
Accountants of India, there is no reportable Geographical Segment
either.
17. 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 difference" between book profit and
taxable profit is accounted for using the tax rates and laws that have
been enacted or substantially enacted as on the Balance Sheet date. The
Deferred Tax Asset is recognised and carried forward only to the extent
that there is reasonable certainty that the asset will be realised in
future.
18. EARNING PER SHARE:
Basic earning per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period.
Mar 31, 2012
1. BASIS OF PREPARATION:
(i) The financial statements have been prepared on Historical Cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 and the
applicable Accounting Standards in India.
(ii) The company follows mercantile sustem of accounting and recognizes
income and expenditure on accrual basis except those with significant
uncertainties.
(iii) The accounting policies have been consistently applied by the
company.
2. USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues & expenses during the reported period. Although
these statements are based up on management's best knowledge of current
events and actions, actual results could differ from these statements.
Difference between the actual results and the estimates are recognized
in the period in which the results are known / materialized.
3. FIXED ASSETS:
Fixed Assets are stated at acquisition cost less depreciation. Cost
includes related taxes, duties, freight, insurance etc attributable to
acquisition and installation of assets and borrowing cost incurred up
to the date of commencing operations, but excludes duties and taxes
that are recoverable subsequently from the taxing authorities.
4. DEPRECIATION:
(i) Depreciation on Fixed Assets has been provided on "Straight Line
Basis" at the rates and in the manner prescribed in Schedule - XIV of
the Companies Act, 1956.
(ii) Leasehold land is amortized over the period of lease.
(iii) Depreciation on Fixed Assets added / disposed off during the year
is provided on pro-rata basis with reference to the date of addition /
disposal.
(iv) Expenditure of amount below Rs. 5000 /- had been written off in
full.
5. INVESTMENTS:
(i) Long Term Investments are stated at cost. A provision for
diminution is made to recognize a decline, other than temporary, in the
value of long term investments.
(ii) Current Investments are stated at lower of cost and fair value.
6. INVENTORIES: Inventories are valued in following manner:
Raw Materials : At Cost
Finished Goods : At Lower of Cost or Market Price
Traded Goods : At Cost
Materials in transit : At Invoice Value.
Stores & Consumables : At Cost
Waste and Scrap : At Net Realisable Value
Cost of finished goods includes direct materials, labour and conversion
and other manufacturing expenses incurred to bring the inventories in
the present condition and location
The determination of cost are on FIFO basis.
7. CONTINGENT LIABILITIES:
Liabilities which are material and whose future outcome cannot be
reasonably ascertained are treated as contingent and not provided for
and disclosed by way of notes to the accounts.
8. REVENUE RECOGNITION:
(i) Mercantile method of accounting has been employed unless otherwise
specifically stated elsewhere in this schedule. However where the
amount is immaterial / negligible and / or establishment of accrual /
determination of amount is not possible, no entry is made for accruals.
(ii) Sale of Products - Revenue is recognized when the significant
risks and rewards of ownership of the goods have passed to the buyer.
Excise Duty and Value Added Tax deducted from turnover (gross) is the
amount that is included in the amount of turnover (gross) and not the
entire amount of liability arised during the year.
(iii) Bonus and Leave Encashment are recognized as per Cash Basis.
9. FOREIGN CURRENCY TRANSACTIONS:
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing at the time of the
transaction.
(ii) Any income or expense on account of exchange difference on
settlement of Monetary items is recognized in the Profit & Loss
Account.
(iii) In respect of transactions covered by Forward Foreign Exchange
Contracts, the difference between the forward rate and exchange rate at
the inception of contract is recognized as income or expenses over the
life of the contract except for contracts relating to liabilities
incurred for purchase of Fixed Assets, the difference thereof is
adjusted in the carrying amount of respective Fixed Assets.
10. BORROWING COST:
Interest and other costs in connection with the borrowing of the funds
to the extent related/attributed to the acquisition/construction of
fixed assets are capitalized only with respect to qualifying fixed
assets i.e. those which take substantial period of time to get ready for
its intended use.
11. EMPLOYEES RETIREMENT BENEFITS:
(i) Defined Contribution plan
Company's contribution to Provident Fund and Employee state Insurance
are charged to Profit and Loss Account. Value of encashable leave are
encashed during the year and charged to Profit & Loss Account. there is
no other obligation other than the contribution Payable to respective
authorities.
Change in Accounting Policy
(ii) Defined Benefit plan
In compliance of the accounting standard 15 (revised) issued by ICAI,
the company had determined the liability required as per revised AS-15,
which was mandatory w.e.f. 01.04.2007 therefore company had change its
policy regarding defined benefit plan as given below.
Company's Liabilities towards gratuity are recognized as an expenses in
profit & Loss Account for the year in which the employee has rendered
services. The expenses determined using actuarial valuation techniques
& assumptions. Actuarial gain or losses are charged to profit & loss
account.
12. PROVISIONS:
Provisions are recognized, where the Company has any legal or
constructive obligation or where realizable estimate can be made for
the amount of the obligation and as a result of past events, for which
it is probable that an outflow of economic benefits will be required to
settle the obligation at the Balance Sheet date. These are reviewed at
each Balance Sheet date and adjusted to reflect the current best
estimates.
13. IMPAIRMENT OF ASSETS:
The Company assesses at each balance sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its estimated
recoverable amount and the amount of such impairment loss is charged to
profit & loss account. If at the balance sheet date there is an
indication that previously assessed impairment loss no longer exists,
then such loss is reversed and the asset is restated to that effect.
14. TURNOVER:
Gross Turnover includes sales inclusive of excise duty, sales tax,
services and are adjusted for discounts.
15. EXCISE DUTY:
Excise duty expenses are accounted for at the time of removal of goods
from the factory. Total excise expenses includes the amount of reversal
of canvas amount and penalty, if any, on order passed during the year.
CENVAT Credit relating to raw materials/components are debited under
current assets for availing credit against CENVAT and credited to
respective materials/component account.
16. SEGMENT REPORING:
The Company has only one primary segment, i.e. Structural Rolling Mill.
As such there is no other reportable segment as defined by Accounting
Standard - 17 "Segment Reporting" issued by the Institute of
Chartered Accountants of India. There is no reportable Geographical
Segment either.
17. 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 difference" between book profit
and taxable profit is accounted for using the tax rates and laws that
have been enacted or substantially enacted as on the Balance Sheet
Date. The Deferred Tax Asset is recognized and carried forward only to
the extent that there is reasonable certainty that the asset will be
realised in future.
18. EARNING PER SHARE:
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period.
Mar 31, 2010
1. BASIS OF PREPARATION:
(i) The financial statements have been prepared on Historical Cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 and the
applicable Accounting Standards in India.
(ii) The company follows mercantile sustem of accounting and recognizes
income and expenditure on accrual basis except those with significant
uncertanities.
(iii) The accounting policies have been consistently applied by the
company..
2. USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues & expenses during the reported period. Although
these statements are based up on managements best knowlege of current
events and actions, actual results could differ from these statements.
Difference between the actual results and the estimates are recognised
in the period in which the results are known / materialised.
3. FIXED ASSETS:
Fixed Assets are stated at acquisition cost less depreciation. Cost
includes related taxes, duties, freight, insurance etc attributable to
acquisition and installation of assets and borrowing cost incurred up
to the date of commencing operations, "but excludes duties and taxes
that are recoverable subsequently from the taxing authorities.
4. DEPRECIATION:
(i) Depreciation on Fixed Assets has been provided on "Straight Line
Basis" at the rates and in the manner prescribed in Schedule - XIV of
the Companies Act, 1956.
(ii) Leasehold land is amortised over the period of lease.
(iii) Depreciation on Fixed Assets added / disposed off during the year
is provided on pro-rata basis with reference to the date of addition /
disposal.
(iv) Expenditure of amount below Rs. 5000 /- had been written of in
full.
5. INVESTMENTS
(i) Long Term Investments are stated at cost. A provision for
diminution is made to recognise a decline, other than temporary, in the
value of long term investments.
(ii) Current Investments are stated at lower of cost and fair value.
6. INVENTORIES: Inventories are valued in following manner:
Raw Materials,Furnace Oil : At Cost
Finished Goods : At Lower of Cost or Market Price
Traded Goods : At Cost
Materials in transit : At Invoice Value.
Stores & Consumables : At Cost
Waste and Scrap : At Net Realisable Value
Cost of finished goods includes direct materials, labour and conversion
and other manufacturing expenses incurred to bring the inventories in
the present condition and location The cost formulae used for
determination of cost are on FIFO basis.
7. CONTINGENT LIABILITIES:
Liabilities which are material and whose future outcome cannot be
reasonably ascertained are treated as contingent and not provided for
and disclosed by way of notes to the accounts.
8. REVENUE RECOGNITION
(i) Mercantile method of accounting has been employed unless otherwise
specifically stated elsewhere in this schedule. However where the
amount is immaterial / negligible and / or establishment of accrual /
determination of amount is not possible, no entry is made for accruals.
(ii) Sale of Products - Revenue is recognised when the significant
risks and rewards of ownership of the goods have passed to the buyer.
Excise Duty and Value Added Tax deducted from turnover (gross) is the
amount that is included in the amount of turnover (gross) and not the
entire amount of liability arised during the year.
(iii) Bonus and Leave Encashment are recognised as per Cash Basis.
9. FOREIGN CURRENCY TRANSACTIONS
(i) Transactions denominated in foreign currencies are normally
recorded at the exchange rate prevailing at the time of the
transaction.
(ii) Any income or expense on account of exchange difference on
settlement of Monetary items is recognised in the Profit & Loss
Account.
(iii) In respect of transactions covered by Forward Foreign Exchange
Contracts, the difference between the forward rate and exchange rate at
the inception of contract is recognized as income or expenses over the
life of the contract except for contracts relating to liabilities
incurred for purchase of Fixed Assets, the difference thereof is
adjusted in the carrying amount of respective Fixed Assets.
10. BORROWING COST
Interest and other costs in connection with the borrowing of the funds
to the extent related/attributed to the acquisition/construction of
fixed assets are capitalized only with respect to qualifying fixed
assets i.e. those which take substantial period of time to get ready
for its intended use.
11. EMPLOYEES RETIREMENT BENEFITS:
(i) Defined Contribution plan
Companys contribution to Provident Fund and Employee state Insurance
are charged to Profit and Loss Account. Value of encashable leave are
encashed during the year and charged to Profit & Loss Account. there
is no other obligation other than the contribution Payable to
respective authorities.
(ii) Defined Benefit
plan Companys Liabilities towards gratuity are determined on the basis
of simple calculation as per Gratuity Act and Labour Act only.
12. PROVISIONS
Provisions are recognized, where the company has any legal or
constructive obligation or where realiable estimate can be made for the
amount of the obligation and as a result of past events, for which it
is probable that an outflow of economic benefits will be required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
13. IMPAIRMENT OF ASSETS
The Company assesses at each balance sheet date whether there is any
indication that any asset may be impaired. If any such indication
exists, the carrying value of such assets is reduced to its estimated
recoverable amount and the amount of such impairment loss is charged to
profit & loss account. If at the balance sheet date there is an
indication that previously assessed impairment loss no longer exists,
then such loss is reversed and the asset is restated to that effect.
14. TURNOVER
Turnover includes sales inclusive of excise duty, sales tax, services
and are adjusted for discounts.
15. EXCISE DUTY
Excise duty expenses are accounted for at the time of removal of goods
form the factory. Total excise expenses includes the amount of reversal
of cenvat amount and penalty, if any, on order passed during the year.
CENVAT Credit relating to raw materials/components are debited under
current assets for availing credit against CENVAT and credited to
respective materials/component account.
16. UNSECURED LOAN FORM OTHERS
Unsecured Loan from others consists of amount payable to State Sales
Tax Department on account of deferred sales tax liability.
17. SEGMENT REPORING
The company has only one primary segment, i.e. Structural Rolling Mill.
As such there is no other reportable segment as defined by Accounting
Standard - 17 "Segment Reporting" issued by the Institute of Chartered
Accountants of India. There is no reportable Geographical Segment
either.
18. 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 difference" between book profit and
taxable profit is accounted for using the tax rates and laws that have
been enacted or substantially enacted as on the Balance Sheet Date. The
Deferred Tax Asset is recognised and carried forward only to the extent
that there is reasonable certainty that the asset will be realised in
future.
19. EARNING PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the period.