Mar 31, 2018
A. SIGNIFICANT ACCOUNTING POLICIES
1.01 (a) Statement of Compliance
These financial statements have been prepared in accordance with Ind AS as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013.
(b) Basis of Preparation:
The financial statements are prepared under the historical cost convention, except for certain financial instruments, and Land, which are measured at fair values at the end of reporting period, as explained in accounting policies below. Historical cost is generally based on fair value of the consideration given in exchange for goods and services. Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
(c) Use of estimates and judgements:
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the periods presented. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected. Key sources of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment of investments, useful lives of property, plant and equipment, valuation of deferred tax assets, provisions and contingent liabilities.
Impairment of investments.
The Company reviews its carrying value of investments carried at amortised cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.
Useful lives of property, plant and equipment.
The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.
(d) Revenue Recognition:
The Company recognises revenue in accordance with Ind-AS 18. Revenue is recognised when a customer obtains control of goods or services and thus has the ability to direct the use and obtained the benefits of the goods or services. Any advance received against supply of goods and services is recognised under the head current liabilities, sub head trade and other payables.
(e) Cost recognition
Costs and expenses are recognised when incurred and have been classified according to their nature.
The costs of the Company are broadly categorised in to material consumption, cost of trading goods, employee benefit expenses, depreciation and amortisation, other operating expenses and finance cost. Employee benefit expenses include employee compensation, allowances paid, contribution to various funds and staff welfare expenses. Other operating expenses broadly comprise manufacturing expenses, administrative expenses and selling and distribution expenses.
1.02 Foreign Currency Loans / Transactions:
(a) Import Transactions:
(i) Material imports are accounted in the entities functional currency at the custom exchange rates prevailing at the time of receipts. In case foreign exchange is hedged, the exchange rate contracted is recognised as a part of purchase cost. Exchange Fluctuations, if any, at the time of retirement of the contract, are appropriately accounted as a part of material (consumption) cost. Similarly all related monetary liabilities at the year-end are re-instated at exchange rate prevailing at year end.
(ii) Import contracts covered by ''foreign exchange cover'' with banks are booked at contracted rates. Income/ Expenditure incurred in cancellation of forward cover contracts, mainly due to variation in the bank involved/ date of execution are treated as part of purchase cost.
(b) Export Transactions:
(i) Export transactions are accounted in the entities functional currency at the custom exchange rates prevailing at the time of shipments. Exchange fluctuations, if any, at the time of realisation are appropriately accounted in the statement of profit and loss.
(ii) Exports, contracts covered by foreign exchange cover with banks, are booked at contracted rates. Income/ expenditure incurred in case of cancellation of forward cover contracts, mainly due to variation in bank involved/ date of execution are treated as export realization, and forms part of revenue from operations.
(iii) In case receipt of Export Advances, exchange rates prevailing on date of receipts of advances is treated as relevant exchange rate for exports.
(c) (i) Foreign Currency Term Loan Contracts, covered by Foreign Exchange Swaps are booked at contracted rates.
(ii) Other Foreign Currency Term Loans balances are accounted at Exchange Rate prevailing at the year end.
(iii) The company does not enter into derivative contracts for trading or speculative purposes.
(d) Such gain / loss in transactions referred in para (c) above, and other foreign currency contracts and/ or derivative contracts and relevant exchange gain/ loss thereto, are considered as finance cost.
1.03 Borrowing costs:
Borrowing costs attributable to the acquisition or construction of qualifying assets as defined in Ind-AS 23, "Borrowing Costsâ are capitalized as part of the cost of such asset up to the date when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. Any related foreign currency fluctuations on account of qualifying asset under construction is capitalized and added to the cost of asset concerned. Other borrowing costs are expensed as incurred.
1.04 The Treatment of Expenditure during Construction Period:
(a) Expenditure directly related to particular fixed assets is capitalized to those fixed assets. All indirect expenses are apportioned to various fixed assets on a reasonable basis. This is done once the construction and erection work is completed, pending which the accumulated amount is disclosed as Capital Work-in-progress Pending capitalization under fixed asset.
1.05 Property, plant and equipment:
(a) Property, plant and equipment, other than land, are carried at cost less accumulated depreciation and impairment loss, if any in accordance with Ind-AS 16. Land is valued at fair market price, based on the valuation carried out by an independent valuer, at end of the reporting period. Valuations are performed with sufficient frequency to ensure that the carrying amount does not differ materially from its fair value.
(b) Cost excludes Cenvat credit, sales tax and service tax credit and such other levies/ taxes. Depreciation on assets is claimed on such ''reduced'' cost.
(c) All items of repairs and maintenance are recognised in the statement of profit and loss, except those meet the recognition principle as defined in Ind-AS 16.
(d) Depreciation on fixed assets has been provided on straight line method based on the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
(e) Depreciation on assets acquired during the year has been provided on pro-rata basis; from the date on which it is ''Available for Intended Use''.
(f) Any revaluation of an asset is recognised in other comprehensive income and shown as revaluation reserves in other equity
1.06 Fair value measurement:
The Company measures land at fair value at each balance sheet date. Fair value is the price that would be received to sell and asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses valuation techniques that are appropriate in circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant absorbable inputs and minimizing the use of un-absorbable inputs. External valuers are adopted for valuing land. The selection criteria for these valuers include market knowledge, reputation, independence and whether professional standards are maintained.
1.07 Intangible Assets:
(a) Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss, if any.
(b) Intangible assets with finite life are amortised over the useful economic life, and assessed for impairment whenever there is an indication that assets are impaired. Intangible assets with indefinite useful life are not amortised, but are tested for impairment annually.
1.08 Impairment of Assets:
Property plant and equipment are reviewed for impairment whenever events or changes in circumstances warrant that the carrying amount of an asset may not be recoverable. Recoverable amount of assets to be held and used is the higher of fair value less cost of disposal or value in use as envisaged in Ind-AS 36. If such assets are considered to be impaired, the impairment to be recognised is measured by the amount by which the carrying amount of the asset exceeds the recoverable value of the asset. Impairment loss is recognised in the statement of profit and loss except for properties previously revalued with revaluation taken to other comprehensive income. For such properties impairment loss is recognised in other comprehensive income up to the amount of any previous revaluation.
1.09 Interest in Subsidiaries, Joint ventures and Associates:
Interest in subsidiaries, joint ventures and associates are recognised at cost. The company provides for any permanent diminution, if any, in value of such interests. Exchange Gain/ (Loss) on interest in subsidiaries, joint ventures and associates in Foreign Currency is not provided at the year end.
1.10 Inventories:
(a) Inventories are valued as under after providing for obsolescence:
(i) Raw Materials - At Cost (Moving Weighted Average Method)
(ii) Work-in-Process - At Material Cost plus labour and other appropriate portion of production and administrative overheads and depreciation.
(iii)Finished Goods - At lower of cost or net realisable value. Cost is inclusive of any taxes and duties incurred.
(iv) Stores Spares etc . - At Cost
(v) Arisings - At realisable value
(vi) Stock In Trade Land- At Fair market value
(b) (i) Raw-materials include stock-in-transit and goods lying in Bonded Warehouses.
(ii) Finished goods include stock-in-transit at Docks awaiting Shipment and stocks with consignees.
(iii) Inventory includes goods lying with third party/ job workers/ consignees.
1.11 Taxation:
(a) Current Tax:
Current income tax Assets or Liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to determine the amount are in accordance with the provisions of Income Tax Act 1961.
(b) Deferred Tax:
Deferred tax liabilities are recognised for all taxable temporary differences in accordance with Ind-AS 12. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits any unused tax losses. Deferred tax assets are recognised to the extend it is probable that taxable profit will be available, against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized. The carrying amount of deferred tax asset is reviewed at each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rate that are expected to apply in the year when the assets are realized or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside the statement of profit and loss is recognised outside the statement of profit and loss. Deferred tax items are recognised in correlation to the underlying transaction either in statement of total comprehensive income or directly in equity.
Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities.
1.12 Earning per Share:
The Company reports basic and diluted earning per share in accordance with Ind-AS 33, ''Earning per Share'' issued by the Institute of Chartered Accountants of India (ICAI). Basic earning per share is computed by dividing the net profit after tax but before other comprehensive income by the weighted average number of shares outstanding during the year.
1.13 Accounting for Provisions, Contingent liabilities and Contingent Assets
(a) In conformity with Ind-AS 37, ''Provisions, Contingent Liabilities and Contingent Assets'', issued by the ICAI. The Company recognizes provisions only when it has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and when a reliable estimate of the amount of the obligation can be made. When the Group expect some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
(b) No provision is recognised for:
(i) Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company; or
(ii) Any present obligation that arises from past events but is not recognised because:
(1) It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
(2) A reliable estimate of the amount of obligation cannot be made.
(c) All those obligations for which provisions are not required to be recognised in accordance with Ind-AS 37 are recorded as contingent liabilities. These are assessed at regular intervals and only that part of the obligation for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable estimate can be made.
In the normal course the company faces claims and assertion by various Parties. The company assesses such claims and assertions and monitors the legal environment on ongoing basis with assistance of legal counsel, wherever necessary.
(d) Contingent Assets are not recognised in the financial statements unless it has become virtually certain that an inflow of economic benefit will arise.
1.14 Export entitlements/ obligations:
(a) Duty free import of raw materials under Advance Authorisation (DEEC) for imports as per import and export policy are matched with exports made/ produced. Benefit/ Obligation are accounted by making suitable adjustments in raw material consumption.
(b) Export incentives receivable on export performance are recognised on accrual basis, with reference to certainty of collectability of such export incentives.
1.15 Deferred sales tax incentive available to the Company under Maharashtra Value Added Tax (MVAT) is recognised as long term liability.
1.16 Employee Benefits:
(a) Short Term Employee Benefits
All employee benefits payable / available within 12 months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, bonus etc, are recognised in the P&L account in the period in which the employee renders the related services.
(b) Long Term Employee Benefits
Post-employment and other long term employee benefits are recognised as an expense in the Profit and Loss Account for the year in which the employee has rendered services. The present value of these defined benefit obligations are ascertained by an independent actuarial valuation as per the requirement of Ind-AS 19- Employee Benefits. Actuarial gains and losses in respect of post-employment and other long term benefits are charged to Statement of Profit and Loss.
1.17 Inter Unit transactions are eliminated to the extent possible.
Mar 31, 2017
CORPORATE INFORMATION
The Company is promoted by Miglani Family since the year 1985, and Arcelor Mittal has joined as Co-Promoter in the year 2009-10.
The Company is in the business of manufacturing of intermediate steel products i.e Cold Rolled Steel (CR) and Galvanised Products comprising of Galvanised Plain (GP), Galvanised Corrugated (GC) and Colour Coated Products (CCP) Coils and Sheets; situated at Khopoli, Mumbai, Western part of India. The Company is in the business of procuring Hot Rolled Steel (HR) and processing it in to CR and further in to GP and PPGI. Its current facilities are mainly in thicker and thinner guage material. The CR not used for galvanizing is converted to value added grades in Cold Rolled Closed Annealed (CRCA) coils, Cut to Length (CTL) Sheets and also sold as Full Hard CR in Domestic and Overseas markets. The market segments for value added grades include Appliance, General Engineering, Automotive, Construction, Packaging, Sandwich Panels and Others.
The Registered office of the Company is situated at Uttam House, 69, P D''Mello Road, Carnac Bunder, Mumbai - 09.
A. SIGNIFICANT ACCOUNTING POLICIES
1.01 (a) Statement of Compliance / Adoption of Ind-AS for first time:
In accordance with the notification issued by the ministry of corporate affairs, the company has adopted Indian Accounting Standards (referred to as "Ind-ASâ) notified under the Companies (Indian Accounting Standards Rules,2015 with effect from April 1,2016. Previous period have been restated to Ind-AS. In accordance with Ind-AS 101 first-time Adoption of Ind-AS, the Company has presented a reconciliation from the presentation of financial statements under Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 ("Previous GAAPâ) to presentation of Financial Statements under Ind-AS of Shareholders'' equity as at 31st March, 2016 and 1st April, 2015 and of the comprehensive net income for the year ended 31st March, 2016.
These financial statements have been prepared in accordance with Ind-AS as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013.
(b) Basis of Preparation:
The financial statements are prepared under the historical cost convention, except for certain financial instruments, and Land, which are measured at fair values at the end of reporting period, as explained in accounting policies below. Historical cost is generally based on fair value of the consideration given in exchange for goods and services. Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
(c) Use of estimates and judgments:
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind-AS requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the periods presented. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected. Key sources of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment of investments, useful lives of property, plant and equipment, valuation of deferred tax assets, provisions and contingent liabilities.
Impairment of investments.
The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.
Useful lives o f property, plant and equipment.
The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.
(d) Revenue Recognition:
The Company recognizes revenue in accordance with Ind-AS 18. Revenue is recognized when a customer obtains control of goods or services and thus has the ability to direct the use and obtained the benefits of the goods or services. Any advance received against supply of goods and services is recognized under the head current liabilities, sub head trade and other payables.
(e) Cost recognition:
Costs and expenses are recognized when incurred and have been classified according to their nature.
The costs of the Company are broadly categorized in to material consumption, cost of trading goods, employee benefit expenses, depreciation and amortization, other operating expenses and finance cost. Employee benefit expenses include employee compensation, allowances paid, contribution to various funds and staff welfare expenses. Other operating expenses broadly comprise manufacturing expenses, administrative expenses and selling and distribution expenses.
1.02 Foreign Currency Loans / Transactions:
(a) Import Transactions:
(i) Material imports are accounted in the entities functional currency at the custom exchange rates prevailing at the time of receipts. In case foreign exchange is hedged, the exchange rate contracted is recognized as a part of purchase cost. Exchange Fluctuations, if any, at the time of retirement of the contract, are appropriately accounted as a part of material (consumption) cost. Similarly all related monetary liabilities at the year-end are re-instated at exchange rate prevailing at year end.
(ii) Import contracts covered by ''foreign exchange cover'' with banks are booked at contracted rates. Income/ Expenditure incurred in cancellation of forward cover contracts, mainly due to variation in the bank involved/ date of execution are treated as part of purchase cost.
(b) Export Transactions:
(i) Export transactions are accounted in the entities functional currency at the custom exchange rates prevailing at the time of shipments. Exchange fluctuations, if any, at the time of realization are appropriately accounted in the statement of profit and loss.
(ii) Exports, contracts covered by foreign exchange cover with banks, are booked at contracted rates. Income/ expenditure incurred in case of cancellation of forward cover contracts, mainly due to variation in bank involved/ date of execution are treated as export realization, and forms part of revenue from operations.
(iii) In case receipt of Export Advances, exchange rates prevailing on date of receipts of advances is treated as relevant exchange rate for exports.
(c) (i) Foreign Currency Term Loan Contracts, covered by Foreign Exchange Swaps are booked at contracted rates.
(ii) Other Foreign Currency Term Loans balances are accounted at Exchange Rate prevailing at the year end.
(iii) The company does not enter into derivative contracts for trading or speculative purposes.
(d) Such gain/ loss in transactions referred in para (c) above, and other foreign currency contracts and/ or derivative contracts and relevant exchange gain/ loss thereto, are considered as finance cost.
1.03 Borrowing costs:
Borrowing costs attributable to the acquisition or construction of qualifying assets as defined in Ind-AS 23, "Borrowing Costsâ are capitalized as part of the cost of such asset up to the date when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. Any related foreign currency fluctuations on account of qualifying asset under construction is capitalized and added to the cost of asset concerned. Other borrowing costs are expensed as incurred.
1.04 The Treatment of Expenditure during Construction Period:
Expenditure directly related to particular fixed assets is capitalized to those fixed assets. All indirect expenses are apportioned to various fixed assets on a reasonable basis. This is done once the construction and erection work is completed, pending which the accumulated amount is disclosed as Capital Work-in-progress Pending capitalization under fixed asset.
1.05 Property, plant and equipment:
(a) Property, plant and equipment, other than land, are carried at cost less accumulated depreciation and impairment loss, if any in accordance with Ind-AS 16. Land is valued at fair market price, based on the valuation carried out by an independent valuer, at end of the reporting period. Valuations are performed with sufficient frequency to ensure that the carrying amount does not differ materially from its fair value.
(b) Cost excludes Cenvat credit, sales tax and service tax credit and such other levies / taxes. Depreciation on assets is claimed on such ''reduced'' cost.
(c) All items of repairs and maintenance are recognized in the statement of profit and loss, except those meet the recognition principle as defined in Ind-AS 16.
(d) Depreciation on fixed assets has been provided on straight line method based on the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
(e) Depreciation on assets acquired during the year has been provided on pro-rata basis; from the date on which it is ''Available for Intended Use''.
(f) Any revaluation of an asset is recognized in other comprehensive income and shown as revaluation reserves in other equity
1.06 Fair value measurement:
The Company measures land at fair value at each balance sheet date. Fair value is the price that would be received to sell and asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses valuation techniques that are appropriate in circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant absorbable inputs and minimizing the use of un-absorbable inputs. External valuers are adopted for valuing land. The selection criteria for these valuers include market knowledge, reputation, independence and whether professional standards are maintained.
1.07 Intangible Assets:
(a) Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment loss, if any.
(b) Intangible assets with finite life are amortized over the useful economic life, and assessed for impairment whenever there is an indication that assets are impaired. Intangible assets with indefinite useful life are not amortized, but are tested for impairment annually.
1.08 Impairment of Assets:
Property plant and equipment are reviewed for impairment whenever events or changes in circumstances warrant that the carrying amount of an asset may not be recoverable. Recoverable amount of assets to be held and used is the higher of fair value less cost of disposal or value in use as envisaged in Ind-AS 36. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the recoverable value of the asset. Impairment loss is recognized in the statement of profit and loss except for properties previously revalued with revaluation taken to other comprehensive income. For such properties impairment loss is recognized in other comprehensive income up to the amount of any previous revaluation.
1.09 Interest in Subsidiaries, Joint ventures and Associates:
Interest in subsidiaries, joint ventures and associates are recognized at cost. The company provides for any permanent diminution, if any, in value of such interests. Exchange Gain/ (Loss) on interest in subsidiaries, joint ventures and associates in Foreign Currency is not provided at the year end.
1.10 Inventories:
(a) Inventories are valued as under after providing for obsolescence
(i) Raw Materials - At Cost (Moving Weighted Average Method)
(ii) Work-in-Process - At Material Cost plus labour and other appropriate portion of production and
administrative overheads and depreciation.
(iii) Finished Goods - At lower of cost or net realizable value. Cost is inclusive of any taxes and duties incurred.
(iv) Stores Spares etc. - At Cost
(v) Arisings - At realizable value
(vi) Stock In Trade Land - At Fair market value
(b) (i) Raw-materials include stock-in-transit and goods lying in Bonded Warehouses.
(ii) Finished goods include stock-in-transit at Docks awaiting Shipment and stocks with consignees.
(iii) Inventory includes goods lying with third party/ job workers / consignees.
1.11 Taxation:
(a) Current Tax
Current income tax Assets or Liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to determine the amount are in accordance with the provisions of Income Tax Act 1961.
(b) Deferred Tax
Deferred tax liabilities are recognized for all taxable temporary differences in accordance with Ind-AS 12. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits any unused tax losses. Deferred tax assets are recognized to the extend it is probable that taxable profit will be available, against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized. The carrying amount of deferred tax asset is reviewed at each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rate that are expected to apply in the year when the assets are realized or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognized outside the statement of profit and loss is recognized outside the statement of profit and loss. Deferred tax items are recognized in correlation to the underlying transaction either in statement of total comprehensive income or directly in equity.
Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities.
1.12 Earning per Share:
The Company reports basic and diluted earnings per share in accordance with Ind-AS 33, ''Earning per Share'' issued by the ICAI. Basic earnings per share is computed by dividing the net profit after tax but before other comprehensive income by the weighted average number of shares outstanding during the year
1.13 Accounting for Provisions, Contingent liabilities and Contingent Assets
(a) In conformity with Ind-AS 37, ''Provisions, Contingent Liabilities and Contingent Assets'', issued by the ICAI. The Company recognizes provisions only when it has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and when a reliable estimate of the amount of the obligation can be made. When the Group expect some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
(b) No provision is recognized for:
(i) Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company; or
(ii) Any present obligation that arises from past events but is not recognized because:
(1) It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
(2) A reliable estimate of the amount of obligation cannot be made.
(c) All those obligations for which provisions are not required to be recognized in accordance with Ind-AS 37 are recorded as contingent liabilities. These are assessed at regular intervals and only that part of the obligation for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable estimate can be made.
In the normal course the company faces claims and assertion by various Parties. The Company assesses such claims and assertions and monitors the legal environment on ongoing basis with assistance of legal counsel, wherever necessary.
(d) Contingent Assets are not recognized in the financial statements unless it has become virtually certain that an inflow of economic benefit will arise.
1.14 Export entitlements / obligations:
(a) Duty free import of raw materials under Advance Authorization (DEEC) for imports as per import and export policy are matched with exports made / produced. Benefit / Obligation are accounted by making suitable adjustments in raw material consumption.
(b) Export incentives receivable on export performance are recognized on accrual basis, with reference to certainty of collectability of such export incentives.
1.15 Deferred sales tax incentive available to the Company under Maharashtra Value Added Tax (MVAT) is recognized as long term liability.
1.16 Employee Benefits:
(a) Short Term Employee Benefits
All employee benefits payable / available within 12 months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, bonus etc, are recognized in the P&L account in the period in which the employee renders the related services.
(b) Long Term Employee Benefits
Post-employment and other long term employee benefits are recognized as an expense in the Profit and Loss Account for the year in which the employee has rendered services. The present value of these defined benefit obligations are ascertained by an independent actuarial valuation as per the requirement of Ind-AS 19- Employee Benefits. Actuarial gains and losses in respect of post-employment and other long term benefits are charged to Statement of Profit and Loss.
1.17 Inter Unit transactions are eliminated to the extent possible.
Term Loans, ECBs & FCTL from Banks and Financial Institutions are secured by mortgage and the lenders have first pari passu charge on all the present and future movable and immovable assets of the Company but not limited to plant and machinery, machinery spares, tools and accessories in possession or not, stored, or to be brought in Company''s premises or lying at any other place of the Company''s representative affiliates and all the intangible assets of the Company, except for Packing machine supplied by PESMEL, Finland._
The Company had given a corporate guarantee of Rs,87.54 Crores (Previous Year Rs, 87.54 Crores) to Commissioner of Customs against export obligation of Uttam Galva Metallics Limited.
The Company had given a corporate guarantee of US$ 22 Million (US$ 22 Million) to Macquarie Bank Limited, against Working Capital Facility availed by Uttam Galva North America Inc, a wholly owned subsidiary
The Company had given a corporate guarantee of US$ 12.50 Million (US$ 12.50 Million) to Brown Brothers Harriman & Co. (BBH) against Working Capital Facility availed by Uttam Galva North America Inc, a wholly owned subsidiary.
Mar 31, 2015
1.01 (a) Basis of Accounting:
The financial statements are prepared under the historical cost
convention on accrual basis of accounting in accordance with the
generally accepted accounting principles, on going concern basis, and
in line with accounting standards issued by the Institute of Chartered
Accountants of India, as applicable, and the provisions of the
Companies Act, 2013.
(b) Use of Estimates:
The preparation of financial statements in conformity with GAAP
requires that the Management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the
assumptions relating to contingent liabilities as on the date of the
financial statements. Examples of such estimates include the useful
life of tangible and intangible fixed assets, provision for doubtful
debts/advances, future obligation in respect of retirement benefit
plans, etc. Difference, if any, between the actual results and
estimates is recognized in the period in which the results are known.
(c) Revenue Recognition:
Revenue is recognized when it is earned and no significant uncertainty
exists as to its realization or collection. The Company recognizes
revenue on the sale of products when the products are dispatched to the
customer or when delivered to the ocean carrier for export sales, which
is when risks and rewards of ownership are passed to the customer.
1.02 Foreign Currency Loans / Transactions:
(a) Import Transactions:
(i) Material imports are accounted at the custom exchange rates
prevailing at the time of receipts. In case foreign exchange is
covered, the exchange rate contracted is recognized as a part of
purchase cost. Exchange Fluctuations, if any, at the time of
retirement, are appropriately accounted as a part of material
(purchase) cost. Similarly Bills Payable (balances) at year end are
accounted at exchange rate prevailing at year end (As per Revised AS -
11).
(ii) Import contracts covered by 'foreign exchange cover' with banks
are booked at contracted rates. Income/ Expenditure incurred in
cancellation of forward cover contracts, mainly due to variation in the
bank involved / date of execution are treated as part of purchase cost.
(b) Export Transactions:
(i) Export transactions are accounted at the custom exchange rates
prevailing at the time of shipments. Exchange fluctuations, if any, at
the time of realisation are appropriately accounted.
(ii) Exports, contracts covered by foreign exchange cover with banks,
are booked at contracted rates. Income/ expenditure incurred in case of
cancellation of forward cover contracts, mainly due to variation in
bank involved / date of execution are treated as export realisation.
(iii) In case receipt of Export Advances, exchange rates prevailing on
date of receipts of advances is treated as relevant exchange rate for
exports.
(c) (i) Foreign Currency Term Loan Contracts, covered by Foreign
Exchange Swaps are booked at contracted
rates.
(ii) Other Foreign Currency Term Loans balances are accounted at
Exchange Rate prevailing at the year end, and such gain / loss, where
these relate to the acquisition of depreciable fixed assets, are
adjusted to the carrying cost of such assets and in other cases are
amortized over the period of such long term monetary item.
(iii) The Company does not enter into derivative contracts for trading
or speculative purposes.
(d) Such gain / loss in transactions referred in para (c) above, and
other foreign currency contracts and / or derivative contracts and
relevant exchange gain / loss thereto, are considered as finance cost.
1.03 Borrowing cost, Premium on redemption of Debentures / Debts:
(a) Borrowing costs attributable to the acquisition or construction of
qualifying assets as defined in Accounting Standard 16 "Borrowing
Costs" are capitalized as part of the cost of such asset up to the
date when the asset is ready for its intended use. Other borrowing
costs are expensed as incurred.
(b) Pursuant to the Reschedule / Realignment Scheme, interest payable
during 2000-2009 financial years is lower than the average interest
rate during 2000-2015 financial years. The Company is treating interest
payable (yearly rate) as interest accrued.
(c) On rescheduling and realignment of term debts, financial cost
incurred is treated as accrued on date of realignment of realigned term
debts and provided in the relevant financial year.
1.04 Commodity Hedging Transactions:
In respect of commodity hedging transactions, the gain / loss on
settlement and provisions for gain / losses at year
end are appropriately accounted along with material cost in Profit and
Loss Account.
1.05 The Treatment of Expenditure during Construction Period:
(a) Expenditure directly related to particular fixed assets is
capitalized to those fixed assets. All indirect expenses are
apportioned to various fixed assets on a reasonable basis. This is done
once the construction and erection work is completed, pending which the
accumulated amount is disclosed as Capital Work-in-Progress pending
capitalization under fixed asset.
(b) Interest on Loans are capitalised upto the date on which the asset
is 'Put to Use'. Interest includes exchange fluctuation on Foreign
Currency Term Loans. It is in line with Accounting Standards on
Borrowing Cost and long term foreign currency debts and Accounting
Standards on Fluctuation on Foreign Exchange currency.
(c) The Income and Expenditure during trial runs is included in the
Profit & Loss Account. Excess of expenditure over income is
capitalised.
(d) Temporary surplus in short term i.e. liabilities over assets are
used for Capital Work In Progress. Interest and consequential cost is
appropriately accounted.
1.06 Fixed Assets and Depreciation:
(a) Fixed assets are carried at cost less accumulated depreciation.
(b) Cost excludes Cenvat credit, sales tax and service tax credit and
such other levies / taxes. Depreciation on such assets is claimed on
'reduced' cost.
(c) Depreciation on fixed assets has been provided on straight line
method based on the useful life of the assets as prescribed in Schedule
II to the Companies Act, 2013, except in case of RCC roads where the
management estimates its useful life is 20 years.
(d) Pursuant to Companies Act 2013 (the Act) becoming effective from
April 1, 2014, the Company has re-worked depreciation with reference to
the estimated useful lives of fixed assets prescribed under Schedule II
to the Act or as per technical evaluation and componentization.
(e) Depreciation on assets acquired during the year has been provided
on pro-rata basis; from the date on which it is 'Put to Use'.
1.06A Impairment of Assets:
Fixed Assets are reviewed for impairment whenever events or changes in
circumstances warrant that the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of an asset to future net
discounted cash flows expected to be generated by the asset. If such
assets are considered to be impaired, the impairment to be recognised
is measured by the amount by which the carrying amount of the asset
exceeds the fair value of the asset.
1.07 Investment:
The Company does not provide for temporary diminution in value of long
term investments, if any. Exchange Gain / (Loss) on Investments in
Foreign Currency has been provided at the year end.
1.08 Inventories:
(a) Inventories are valued as under after providing for obsolescence:
(i) Raw Materials - At Cost (Moving Weighted Average Method)
(ii) Work-in-Progress - At Material Cost plus labour and other
appropriate portion of production
and administrative overheads and depreciation.
(iii) Finished Goods - At lower of cost or realisable value. Cost is
inclusive ofanytaxes and duties
incurred.
(iv) Stores Spares etc. - At Cost.
(v) Arisings - At realisable value.
(vi) Stock In Trade Land - At Fair market value.
(b) (i) Raw-materials include stock-in-transit and goods lying in
Bonded Warehouses.
(ii) Finished goods include stock-in-transit at Docks awaiting Shipment
and stocks with consignees.
(iii) Inventory includes goods lying with third party / job workers /
consignees.
1.09 Provision for Taxation:
Income tax expense is the aggregate amount of Current tax & Deferred
Tax. Current year taxes are determined in accordance with the
provisions of Income Tax Act, 1961.
Deferred tax charged or credited reflects the tax effect of timing
differences between accounting income and taxable income for the
period. The deferred tax charged or credited and the corresponding
deferred tax liability or asset are recognized using the tax rates that
have been enacted or substantively enacted on the Balance Sheet date.
1.10 Earning per Share:
The Company reports basic and diluted earning per share in accordance
with AS-20 'Earning per Share' issued by the Institute of Chartered
Accountants of India (ICAI). Basic earning per share is computed by
dividing the net profit after tax by the weighted average number of
shares outstanding for the year.
1.11 Accounting for Provisions, Contingent liabilities and Contingent
Assets:
(a) In conformity with AS-29, 'Provisions, Contingent Liabilities and
Contingent Assets', issued by the ICAI. The Company recognizes
provisions only when it has a present obligation as a result of a past
event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and when a reliable
estimate of the amount of the obligation can be made.
(b) No provision is recognised for:
(i) Any possible obligation that arises from past events and the
existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within
the control of the Company; or
(ii) Any present obligation that arises from past events but is not
recognised because:
(1) It is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; or
(2) A reliable estimate of the amount of obligation cannot be made.
Such obligations are recorded as Contingent Liabilities. These are
assessed at regular intervals and only that part of the obligation for
which an outflow of resources embodying economic benefits is probable,
is provided for, except in the extremely rare circumstances where no
reliable estimate can be made.
(c) Contingent Assets are not recognised in the financial statements as
this may result in the recognition of income that may never be
realised.
1.12 Advances received from customers against exports, which is spilled
over/ executable/ adjustable/ repayable beyond period of 12 months as
on the date of Balance Shee is treated as Non-Current Liabilities,
under the sub head Other Long Term Liabilities.
1.13 Export entitlements / obligations:
(a) Duty free import of raw materials under Advance Authorisation
(DEEC) for imports as per import and export policy are matched with
exports made / produced. Benefit / Obligation are accounted by making
suitable adjustments in raw material consumption.
(b) The benefits accrued under the Duty Drawback Scheme and Duty Free
Import Authorisation (DFIA) as per the relevant import and export
policies during the year are included under the head:
(i) Sales: Export incentives
(ii) Raw material consumed
(iii) Stores & Spares consumed
(c) Export incentives receivable on export performance are recognised
in pursuance to 'Accounting Standard 9 on Revenue Recognition', (AS-9)
with reference to certainty of collectability of such export
incentives.
1.14 (a) Sales are recognised at the time of dispatch to customers /
endorsement of documents and includes Central
Excise Duty; as may be applicable.
(b) Finished goods captively consumed as packing materials are excluded
from sales. Transfer Price, as taken in Central Excise Duty records, is
treated as the packing material cost.
1.15 Deferred sales tax incentive available to the Company under
Maharashtra Value Added Tax (MVAT) is recognised as sales in case Net
Present Value (NPV) is duly paid to the designated authority before the
approval of annual accounts.
1.16 Customs Duty:
The Company has been accounting for custom duty liability, as may be
applicable, in respect of imported raw material lying in bonded
warehouse as and when they are ex-bonded.
1.17 Central Excise Duty and Service Tax:
(a) The Company is accounting liability for excise duty on finished
goods as and when goods are cleared as per consistent practice, in
pursuance to the accepted practice of the Excise authorities.
(i) Inventory valuation
(1) Finished goods in the plant at the close of the year are valued
inclusive of excise duty.
(2) Raw materials and work in process are valued exclusive of Cenvat
claimed.
(ii) Profit / Loss for the year remain unaffected by inclusion /
exclusion of Excise Duty in inventory valuation referred in clauses (1)
and (2) above.
(b) The Company is accounting liability for Service Tax under Reverse
Charge Mechanism for various services availed by the Company, at the
time of booking an expenditure. The credit for Input Services Tax is
claimed as per appropriate laws, rules and regulations.
1.18 Employee Benefits:
A. Short Term Employee Benefits
All employee benefits payable / available within 12 months of rendering
the services are classified as short term employee benefits. Benefits
such as salaries, wages, bonus etc, are recognized in the P&L account
in the period in which the employee renders the related services.
B. Long Term Employee Benefits
Post employment and other long term employee benefits are recognized as
an expense in the Profit and Loss Account for the year in which the
employee has rendered services. The expense is recognized at the
present value of the amounts payable determined using Actuarial
Valuation Techniques. Actuarial gains and losses in respect of
post-employment and other long term benefits are charged to Profit and
Loss Account.
1.19 Inter Unit transactions are eliminated to the extent possible.
1) Term Loans, ECBs & FCTL from Banks and Financial Institutions are
secured by mortgage and the lenders have first pari passu charge on all
the present and future movable and immovable assets of the Company but
not limited to plant and machinery, machinery spares, tools and
accessories in possession or not, stored, or to be brought in Company's
premises or lying at any other place of the Company's representative
affiliates and all the intangible assets of the Company, except for
Packing machine supplied by PESMEL, Finland.
Mar 31, 2014
1.01 (a) Basis of Accounting:
The financial statements are prepared under the historical cost
convention on accrual basis of accounting in accordance with the
generally accepted accounting principles, on going concern basis, and
in line with Accounting Standards issued by the Institute of Chartered
Accountants of India, as applicable, and the provisions of the
Companies Act, 1956.
(b) Use of Estimates:
The preparation of financial statements in conformity with GAAP
requires that the Management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the
assumptions relating to contingent liabilities as on the date of the
financial statements. Examples of such estimates include the useful
life of tangible and intangible fixed assets, provision for doubtful
debts/advances, future obligation in respect of retirement benefit
plans, etc. Difference, if any, between the actual results and
estimates is recognized in the period in which the results are known.
(c) Revenue Recognition:
Revenue is recognized when it is earned and no significant uncertainty
exists as to its realization or collection.The Company recognizes
revenue on the sale of products when the products are dispatched to the
customer or when delivered to the ocean carrier for export sales, which
is when risks and rewards of ownership are passed to the customer.
1.02 Foreign Currency Loans / Transactions:
(a) Import Transactions:
(i) Material imports are accounted at the custom exchange rates
prevailing at the time of receipts. In case foreign exchange is
covered, the exchange rate contracted is recognized as a part of
purchase cost. Exchange Fluctuations, if any, at the time of
retirement, are appropriately accounted as a part of material
(purchase) cost. Similarly Bills Payable (balances) at year end are
accounted at exchange rate prevailing at year end (As per Revised AS -
11). (ii) Import contracts covered by ''foreign exchange cover'' with
banks are booked at contracted rates. Income / Expenditure incurred in
cancellation of forward cover contracts, mainly due to variation in the
bank involved / date of execution are treated as part of purchase cost.
(b) Export Transactions:
(i) Export transactions are accounted at the custom exchange rates
prevailing at the time of shipments.
Exchange fluctuations, if any, at the time of realisation are
appropriately accounted.
(ii) Exports, contracts covered by foreign exchange cover with banks,
are booked at contracted rates. Income / expenditure incurred in case
of cancellation of forward cover contracts, mainly due to variation in
bank involved / date of execution are treated as export realisation.
(iii) In case receipt of Export Advances, exchange rates prevailing on
date of receipts of advances is treated as relevant exchange rate for
exports.
(c) (i) Foreign Currency Term Loan Contracts, covered by Foreign
Exchange Swaps are booked at contracted rates.
(ii) Other Foreign Currency Term Loan balances are accounted at
Exchange Rate prevailing at the year end, and such gain / loss, where
these relate to the acquisition of depreciable fixed assets, are
adjusted to the carrying cost of such assets and in other cases are
amortized over the period of such long term monetary item.
(iii) The company does not enter into derivative contracts for trading
or speculative purposes.
(d) Such gain / loss in transactions referred in para (c) above, and
other foreign currency contracts and / or derivative contracts and
relevant exchange gain / loss thereto, are considered as finance cost.
1.03 Borrowing cost, Premium on Redemption of Debentures / Debts:
(a) Borrowing costs attributable to the acquisition or construction of
qualifying assets as defined in Accounting Standard 16 "Borrowing
Costs" are capitalized as part of the cost of such asset upto the date
when the asset is ready for its intended use. Other borrowing costs are
expensed as incurred.
(b) Pursuant to the Reschedule / Realignment Scheme, interest payable
during 2000-2009 financial years is lower than the average interest
rate during 2000-2014 financial years. The company is treating interest
payable (yearly rate) as interest accrued.
(c) On rescheduling and realignment of term debts, financial cost
incurred is treated as accrued on date of realignment of realigned term
debts and provided in the relevant financial year.
1.04 Commodity Hedging Transactions:
In respect of commodity hedging transactions, the gain / loss on
settlement and provisions for gain / losses at the year end are
appropriately accounted along with material cost in Profit and Loss
Account.
1.05 The Treatment of Expenditure during Construction Period:
(a) Expenditure directly related to particular fixed assets is
capitalized to those fixed assets. All indirect expenses are
apportioned to various fixed assets on a reasonable basis. This is done
once the construction and erection work is completed, pending which the
accumulated amount is disclosed as Capital Work-in- progress pending
capitalization under fixed asset.
(b) Interest on Loans are capitalised upto the date on which the asset
is ''Put to Use''. Interest includes exchange fluctuation on Foreign
Currency Term Loans. It is in line with Accounting Standards on
Borrowing Cost and Long Term Foreign Currency Debts and Accounting
Standards on Fluctuation on Foreign Exchange currency.
(c) The Income and Expenditure during trial runs is included in the
Profit & Loss Account. Excess of expenditure over income is
capitalised.
(d) Temporary surplus in short term i.e. liabilities over assets are
used for Capital Work-In-Progress. Interest and consequential cost is
appropriately accounted.
1.06 Fixed Assets and Depreciation:
(a) Fixed assets are carried at cost less accumulated depreciation.
(b) Cost excludes Cenvat credit, sales tax and service tax credit and
such other levies / taxes. Depreciation on such assets is claimed on
''reduced'' cost.
(c) Depreciation on fixed assets has been provided on straight line
method at the rates specified, in the Schedule XIV of the Companies
Act, 1956, in line with Notification No. GSR/756(E) dated, 16th
December 1993.
(d) Depreciation on assets acquired during the year has been provided
on pro-rata basis; from the date on which it is ''Put to Use''.
(e) Computer Software is depreciated over an estimated useful life of 5
Years. 1.06A Impairment of Assets:
Fixed Assets are reviewed for impairment whenever events or changes in
circumstances warrant that the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of an asset to future net
discounted cash flows expected to be generated by the asset. If such
assets are considered to be impaired, the impairment to be recognised
is measured by the amount by which the carrying amount of the asset
exceeds the fair value of the asset.
1.07 Investment:
The company does not provide for temporary diminution in value of long
term investments, if any. Exchange Gain / (Loss) on Investments in
Foreign Currency has been provided at the year end.
1.08 Inventories:
(a) Inventories are valued as under after providing for obsolescence:
(i) Raw Materials - At Cost (Moving Weighted Average Method)
(ii) Work-in-Progress - At Material Cost plus labour and other
appropriate portion of production and administrative overheads and
depreciation.
(iii) Finished Goods - At lower of cost or realisable value. Cost is
inclusive of any taxes and duties incurred.
(iv) Stores Spares etc. - At Cost (v) Arisings - At realisable value
(b) (i) Raw-materials include stock-in-transit and goods lying in
Bonded Warehouses.
(ii) Finished goods include stock-in-transit at Docks awaiting Shipment
and stocks with consignees.
(iii) Inventory includes goods lying with third party / job workers /
consignees.
1.09 Provision for Taxation:
Income tax expense is the aggregate amount of Current tax, Wealth Tax &
Deferred Tax. Current year taxes are determined in accordance with the
provisions of Income Tax Act, 1961 and Wealth Tax Act, 1957. Deferred
tax charged or credited reflects the tax effect of timing differences
between accounting income and taxable income for the period. The
deferred tax charged or credited and the corresponding deferred tax
liability or asset are recognized using the tax rates that have been
enacted or substantively enacted on the Balance Sheet date.
1.10 Earning per Share:
The Company reports basic and diluted earning per share in accordance
with AS-20 ''Earning per Share'' issued by the Institute of Chartered
Accountants of India (ICAI). Basic earning per share is computed by
dividing the net profit after tax by the weighted average number of
shares outstanding for the year.
1.11 Accounting for Provisions, Contingent Liabilities and Contingent
Assets:
(a) In conformity with AS-29, ''Provisions, Contingent Liabilities and
Contingent Assets'', issued by the ICAI, the Company recognizes
provisions only when it has a present obligation as a result of a past
event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and when a reliable
estimate of the amount of the obligation can be made.
(b) No provision is recognised for:
(i) Any possible obligation that arises from past events and the
existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within
the control of the Company; or
(ii) Any present obligation that arises from past events but is not
recognised because:
(1) It is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; or
(2) A reliable estimate of the amount of obligation cannot be made.
Such obligations are recorded as Contingent Liabilities. These are
assessed at regular intervals and only that part of the obligation for
which an outflow of resources embodying economic benefits is probable,
is provided for, except in the extremely rare circumstances where no
reliable estimate can be made.
(c) Contingent Assets are not recognised in the financial statements as
this may result in the recognition of income that may never be
realised.
1.12 Advances received from customers against exports, which is spilled
over/ executable/ adjustable/ repayable beyond period of 12 months as
on the date of Balance Sheet is treated as Non-Current Liabilities,
under the sub head Other Long Term Liabilities.
1.13 Export entitlements / obligations:
(a) Duty free import of raw materials under Advance Authorisation
(DEEC) for imports as per import and export policy are matched with
exports made / produced. Benefit / Obligation are accounted by making
suitable adjustments in raw material consumption.
(b) The benefits accrued under the Duty Drawback Scheme, Focus Market
Scheme, Focus Product Scheme and Duty Free Import Authorisation (DFIA)
as per the relevant import and export policies during the year are
included under the head:
(i) Sales: Export incentives
(ii) Raw material consumed
(iii) Stores & Spares consumed
(c) Export incentives receivable on export performance are recognised
in pursuance to Accounting Standard 9 on Revenue Recognition'', (AS-9)
with reference to certainty of collectability of such export
incentives.
1.14 (a) Sales are recognised at the time of dispatch to customers /
endorsement of documents and includes Central
Excise Duty; as may be applicable. (b) Finished goods captively
consumed as packing materials are excluded from sales. Transfer Price,
as taken in Central Excise Duty records, is treated as the packing
material cost.
1.15 Deferred sales tax incentive available to the Company under
Maharashtra Value Added Tax (MVAT) is recognised as sales in case Net
Present Value (NPV) is duly paid to the designated authority before the
approval of annual accounts.
1.16 Customs Duty:
The Company has been accounting for custom duty liability, as may be
applicable, in respect of imported raw material lying in bonded
warehouse as and when they are ex-bonded.
1. 17 Central Excise Duty and Service Tax:
(a) The Company is accounting liability for excise duty on finished
goods as and when goods are cleared as per consistent practice, in
pursuance to the accepted practice of the Excise authorities.
(i) Inventory valuation
(1) Finished goods in the plant at the close of the year are valued
inclusive of excise duty.
(2) Raw materials and work in process are valued exclusive of Cenvat
claimed.
(ii) Profit / Loss for the year remain unaffected by inclusion /
exclusion of Excise Duty in inventory valuation referred in clauses (1)
and (2) above.
(b) The Company is accounting liability for Service Tax under Reverse
Charge Mechanism for various services availed by the company, at the
time of booking an expenditure. The credit for Input Services Tax is
claimed as per appropriate laws, rules and regulations.
1.18 Employee Benefits:
(a) Short Term Employee Benefits
All employee benefits payable / available within 12 months of rendering
the services are classified as short term employee benefits. Benefits
such as salaries, wages, bonus etc, are recognized in the P&L account
in the period in which the employee renders the related services.
(b) Long Term Employee Benefits
Post employment and other long term employee benefits are recognized as
an expense in the Profit and Loss Account for the year in which the
employee has rendered services. The expense is recognized at the
present value of the amounts payable determined using Actuarial
Valuation Techniques. Actuarial gains and losses in respect of
post-employment and other long term benefits are charged to Profit and
Loss Account.
1.19 Inter Unit transactions are eliminated to the extent possible.
Mar 31, 2013
1.01 (a) Basis of Accounting:
The financial statements are prepared under the historical cost
convention on accrual basis of accounting in accordance with the
generally accepted accounting principles, on going concern basis, and
in line with accounting standards issued by the Institute of Chartered
Accountants of India, as applicable, and the provisions of the
Companies Act, 1956.
(b) Use of Estimates:
The Preparation of financial statements in conformity GAAP requires
that the Management of the Company makes estimates and assumptions that
affect the reported amounts of income and expenses of the period, the
reported balances of assets and liabilities and the assumptions
relating to contingent liabilities as on the date of the financial
statements. Examples of such estimates include the useful life of
tangible and intangible fixed assets, provision for doubtful debts /
advances, future obligation in respect of retirement benefit plans,
etc. Difference, if any, between the actual results and estimates is
recognized in the period in which the results are known.
(c) Revenue Recognition:
The Company recognizes revenue on the sale of products when the
products are dispatched to the customer or when delivered to the ocean
carrier for export sales, which is when risks and rewards of ownership
are passed to the customer.
1.02 Foreign Currency Loans / Transactions:
(a) Import Transactions:
(i) Material imports are accounted at the custom exchange rates
prevailing at the time of receipts. In case foreign exchange is
covered, the exchange rate contracted is recognized as a part of
purchase cost. Exchange Fluctuations, if any, at the time of
retirement, are appropriately accounted as a part of material
(purchase) cost. Similarly Bills Payable (balances) at year end are
accounted at exchange rate prevailing at year end (As per Revised AS -
11).
(ii) Import contracts covered by ''foreign exchange cover'' with banks
are booked at contracted rates. Income / Expenditure incurred in
cancellation of forward cover contracts, mainly due to variation in the
bank involved / date of execution are treated as part of purchase cost.
(b) Export Transactions:
(i) Export transactions are accounted at the custom exchange rates
prevailing at the time of shipments. Exchange fluctuations, if any, at
the time of realisation are appropriately accounted.
(ii) Exports, contracts covered by foreign exchange cover with banks,
are booked at contracted rates. Income / expenditure incurred in case
of cancellation of forward cover contracts, mainly due to variation in
bank involved / date of execution are treated as export realisation.
(iii) In case receipt of Export Advances, exchange rates prevailing on
date of receipts of advances is treated as relevant exchange rate for
exports.
(c) (i) Foreign Currency Term Loan Contracts, covered by Foreign
Exchange Swaps are booked at contracted rates.
(ii) Other Foreign Currency Term Loans balances are accounted at
Exchange Rate prevailing at the year end, and such gain / loss is
considered as finance cost.
(d) Such gain / loss in transactions referred in para (c) above, and
other foreign currency contracts and / or derivative contracts and
relevant exchange gain / loss thereto, are considered as finance cost.
1.03 Interest on Term Loans, Premium on redemption of Debentures /
Debts:
(i) Pursuant to the Reschedule / Realignment Scheme, interest payable
during 2000-2009 financial years is lower than the average interest
rate during 2000-2014 financial years. The company is treating interest
payable (yearly rate) as interest accrued.
(ii) On reschedulement and realignment of term debts, financial cost
incurred is treated as accrued on date of realignment of realigned term
debts and provided in the relevant financial year.
1.04 Employee Benefits:
A. Short Term Employee Benefits
All employee benefits payable / available within 12 months of rendering
the services are classified as short term employee benefits. Benefits
such as salaries, wages, bonus etc, are recognized in the P&L account
in the period in which the employee renders the related services.
B. Long Term Employee Benefits
Post employment and other long term employee benefits are recognized as
an expense in the Profit and Loss Account for the year in which the
employee has rendered services. The expense is recognized at the
present value of the amounts payable determined using Actuarial
Valuation Techniques. Actuarial gains and losses in respect of
post-employment and other long term benefits are charged to Profit and
Loss Account.
1.05 The Treatment of Expenditure during Construction Period:
(a) Expenditure directly related to particular fixed assets is
capitalized to those fixed assets. All indirect expenses are
apportioned to various fixed assets on a reasonable basis. This is done
once the construction and erection work is completed, pending which the
accumulated amount is disclosed as Capital Work-in- progress Pending
capitalization under fixed asset.
(b) Interest on Loans are capitalised upto the date on which the asset
is ''Put to Use''. Interest includes exchange fluctuation on Foreign
Currency Term Loans. It is in line with Accounting Standards on
Borrowing Cost and long term foreign currency debts and Accounting
Standards on Fluctuation on Foreign Exchange currency.
(c) The Income and Expenditure during trial runs is included in the
Profit & Loss Account. Excess of expenditure over income is
capitalised.
(d) Temporary surplus in short term i.e. liabilities over assets are
used for Capital Work In Progress. Interest and consequential cost is
appropriately accounted.
(e) Upfront Expenses incurred on mobilisation of term debts is treated
as a part of Capital Cost of relevant project.
1.06 Fixed Assets and Depreciation:
(a) Fixed assets are carried at cost less accumulated depreciation.
(b) Cost excludes Cenvat credit, sales tax and service tax credit and
such other levies / taxes. Depreciation on such assets is claimed on
''reduced'' cost.
(c) Depreciation on fixed assets has been provided on straight line
method at the rates specified, in the Schedule XIV of the Companies
Act, 1956, in Line with Notification No. GSR/756(E) dated, 16th
December 1993.
(d) Depreciation on assets acquired during the year has been provided
on pro-rata basis; from the date on which it is ''Put to Use''.
I.06 A Impairment of Assets:
Fixed Assets are reviewed for impairment whenever events or changes in
circumstances warrant that the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of an asset to future net
discounted cash flows expected to be generated by the asset. If such
assets are considered to be impaired, the impairment to be recognised
is measured by the amount by which the carrying amount of the asset
exceeds the fair value of the asset.
1.07 Investment:
The company does not provide for temporary diminution in value of long
term investments, if any. Exchange Gain / (Loss) on Investments in
Foreign Currency has been provided at the year end.
1.08 Inventories:
(a) Inventories are valued as under after providing for obsolescence:
(a) Fixed as Materials - At Cost (Moving Weighted Average Method)
(ii) Work-in-Process - At Material Cost plus labour and other
appropriate portion of production and administrative overheads and
depreciation.
(iii) Finished Goods - At lower of cost or realisable value. Cost is
inclusive of any taxes and duties incurred.
(iv) Stores Spares etc. - At Cost
(v) Arising''s - At realisable value
(b) (i) Raw-materials include stock-in-transit and goods lying in
Bonded Warehouses.
(ii) Finished goods include stock-in-transit at Docks awaiting Shipment
and stocks with consignees.
(iii) Inventory includes goods lying with third party / job workers /
consignees.
1.09 Provision for Taxation
Income tax expense is the aggregate amount of Current tax, Wealth Tax &
Deferred Tax. Current year taxes are determined in accordance with the
provisions of Income Tax Act, 1961 and Wealth Tax Act 1957.
Deferred tax charged or credit reflects the tax effect of timing
differences between accounting income and taxable income for the
period. The deferred tax charged or credit and the corresponding
deferred tax liability or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
dates.
1.10 Earning per Share:
The Company reports basic and diluted earning per share in accordance
with AS-20 ''Earning per Share'' issued by the ICAI. Basic earning per
share is computed by dividing the net profit after tax by the weighted
average number of shares outstanding for the year.
1.11 Accounting for Provisions, Contingent liabilities and Contingent
Assets
(a) In conformity with AS-29, ''Provisions, Contingent Liabilities and
Contingent Assets'', issued by the Institute of Chartered Accountants of
India. The Company recognizes provisions only when it has a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation, and when a reliable estimate of the amount of the
obligation can be made.
(b) No provision is recognised for:
(i) Any possible obligation that arises from past events and the
existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within
the control of the Company; or
(ii) Any present obligation that arises from past events but is not
recognised because:
(1) It is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; or
(2) A reliable estimate of the amount of obligation cannot be made.
Such obligations are recorded as Contingent Liabilities. These are
assessed at regular intervals and only that part of the obligation for
which an outflow of resources embodying economic benefits is probable,
is provided for, except in the extremely rare circumstances where no
reliable estimate can be made.
(iii) Contingent Assets are not recognised in the financial statements
as this may result in the recognition of income that may never be
realised.
1.12 Export entitlements / obligations:
(a) Duty free import of raw materials under Advance Authorisation
(DEEC) for imports as per import and export policy are matched with
exports made / produced. Benefit / Obligation are accounted by making
suitable adjustments in raw material consumption.
(b) The benefits accrued under the Duty Drawback Scheme and Duty Free
Import Authorisation (DFIA) as per the relevant import and export
policies during the year are included under the head:
(i) Sales: Export incentives
(ii) Raw material consumed
(iii) Stores & Rolls consumed
(c) Export incentives receivable on export performance are recognised
in pursuance to ''Accounting Standard 9 on Revenue Recognition'',
(AS-9) with reference to certainty of collectability of such export
incentives.
1.13 (a) Sales are recognised at the time of dispatch to customers /
endorsement of documents and includes Central Excise Duty; as may be
applicable.
(b) Finished goods captively consumed as packing materials are excluded
from sales. Transfer Price, as taken in Central Excise Duty records, is
treated as the packing material cost.
1.14 Deferred sales tax incentive available to the Company under
Maharashtra Value Added Tax (MVAT) is recognised as sales in case Net
present value (NPV) is duly paid to the designated authority before the
approval of annual accounts.
1.15 Customs Duty:
The Company has been accounting for custom duty liability, as may be
applicable, in respect of imported raw material lying in bonded
warehouse as and when they are ex-bonded.
1.16 Central Excise Duty and Service Tax:
(a) The Company is accounting liability for excise duty on finished
goods as and when goods are cleared as per consistent practice, in
pursuance to the accepted practice of the Excise authorities.
(i) Inventory valuation
(1) Finished goods in the plant at the close of the year are valued
inclusive of excise duty.
(2) Raw materials and work in process are valued exclusive of Cenvat
claimed.
(ii) Profit / Loss for the year remain unaffected by inclusion /
exclusion of Excise Duty in inventory valuation referred in clauses (1)
and (2) above.
(b) The Company is accounting liability for Service Tax for services
purchased, at the time of payment. The credit for Input Services Tax is
claimed as per appropriate laws, rules and regulations.
1.17 Commodity Hedging Transactions:
In respect of commodity hedging transactions, the gain / loss on
settlement and provisions for gain / losses at year end are
appropriately accounted along with material cost in Profit and Loss
Account.
1.18 Inter Unit transactions are eliminated to the extent possible.
Mar 31, 2012
1.01 (a) Basis of Accounting:
The financial statements are prepared under the historical cost
convention on accrual basis of accounting in accordance with the
generally accepted accounting principles, on going concern basis, and
in line with accounting standards issued by the Institute of Chartered
Accountants of India, as applicable, and the provisions of the
Companies Act, 1956.
(b) Use of Estimates:
The Preparation of financial statements in conformity GAAP requires
that the Management of the Company makes estimates and assumptions that
affect the reported amounts of income and expenses of the period, the
reported balances of assets and liabilities and the assumptions
relating to contingent liabilities as on the date of the financial
statements. Examples of such estimates include the useful life of
tangible and intangible fixed assets, provision for doubtful
debts/advances, future obligation in respect of retirement benefit
plans, etc. Difference, if any, between the actual results and
estimates is recognized in the period in which the results are known.
(c) Revenue Recognition:
The Company recognizes revenue on the sale of products when the
products are dispatched to the customer or when delivered to the ocean
carrier for export sales, which is when the risks and rewards of
ownership are passed to the customer.
1.02 Foreign Currency Loans / Transactions:
(a) Import Transactions:
(i) Material imports are accounted at the custom exchange rates
prevailing at the time of receipts. In case foreign exchange is
covered, the exchange rate contracted is recognized as a part of
purchase cost. Exchange Fluctuations, if any, at the time of
retirement, are appropriately accounted as a part of material
(purchase) cost. Similarly Bills Payable (balances) at year end are
accounted at exchange rate prevailing at year end (As per Revised AS -
11).
(ii) Import contracts covered by 'foreign exchange cover' with
banks are booked at contracted rates. Income / Expenditure incurred in
cancellation of forward cover contracts, mainly due to variation in the
bank involved / date of execution are treated as part of purchase cost.
(b) Export Transactions:
(i) Export transactions are accounted at the custom exchange rates
prevailing at the time of shipments. Exchange fluctuations, if any, at
the time of realisation are appropriately accounted.
(ii) Exports contracts covered by foreign exchange cover with banks,
are booked at contracted rates. Income / expenditure incurred in case
of cancellation of forward cover contracts, mainly due to variation in
bank involved / date of execution are treated as export realisation.
(iii) In case receipt of Export Advances, exchange rates prevailing on
date of receipts of advances is treated as relevant exchange rate for
exports.
(c) (i) Foreign Currency Term Loan Contracts, covered by Foreign
Exchange Swaps are booked at contracted rates.
(ii) Other Foreign Currency Term Loans balances are accounted at
Exchange Rate prevailing at the year end and such gain / loss is
considered as finance cost.
(d) Such gain / loss in transactions referred in para (c) above, and
other foreign currency contracts and / or derivative contracts and
relevant exchange gain / loss thereto, are considered as finance cost.
1.03 Interest on Term Loans, Premium on redemption of Debentures /
Debts:
(i) Pursuant to the Reschedule / Realignment Scheme, interest payable
during 2000-2009 financial years is lower than the average interest
rate during 2000-2014 financial years. The company is treating interest
payable (yearly rate) as interest accrued.
(ii) On reschedulement and realignment of term debts, financial cost
incurred is treated as accrued on date of realignment of realigned term
debts and provided in the relevant financial year.
1.04 Employee Benefits:
(a) Short Term Employee Benefits
All employee benefits payable / available within 12 months of rendering
the services are classified as short term employee benefits. Benefits
such as salaries, wages, bonus etc, are recognized in the P&L account
in the period in which the employee renders the related services.
(b) Long Term Employee Benefits
(i) The Company has taken Group Gratuity Policy with the Life Insurance
Corporation of India (LIC) for future payment of Gratuities. Any
deficit in Plan Assets managed by LIC and as compared to the Actuarial
Liability is recognized as a liability immediately.
(ii) Leave Encashment benefit accrued at the year end.
1.05 The Treatment of Expenditure during Construction Period:
(a) Expenditure directly related to particular fixed assets is
capitalized to those fixed assets. All indirect expenses are
apportioned to various fixed assets on a reasonable basis. This is done
once the construction and erection work is completed, pending which the
accumulated amount is disclosed as Capital Work-in-progress pending
capitalization under fixed asset.
(b) Interest on Loans are capitalised upto the date on which the asset
is "Put to Use". Interest includes exchange fluctuation on Foreign
Currency Term Loans. It is in line with Accounting Standards on
Borrowing Cost and long term foreign currency debts and Accounting
Standards on Fluctuation on Foreign Exchange currency.
(c) The Income and Expenditure during trial runs is included in the
Profit & Loss Account. Excess of expenditure over income is
capitalised.
(d) Temporary surplus in short term i.e. liabilities over assets are
used for Capital Work-in-Progress. Interest and consequential cost is
appropriately accounted / reimbursements.
(e) Upfront Expenses incurred on mobilisation of term debts is treated
as a part of Capital Cost of relevant project.
1.06 Fixed Assets and Depreciation:
(a) Fixed assets are carried at cost less accumulated depreciation.
(b) Cost excludes Cenvat Credit, Sales Tax and Service Tax Credit and
such other levies / taxes. Depreciation on such assets is claimed on
'reduced' cost.
(c) Depreciation on fixed assets has been provided on straight line
method at the rates specified, in the Schedule XIV of the Companies
Act, 1956, in Line with Notification No. GSR/756(E) dated, 16th
December 1993.
(d) Depreciation on assets acquired during the year has been provided
on pro-rata basis; from the date on which it is" Put to Use".
1.06 Impairment of Assets:
Fixed Assets are reviewed for impairment whenever events or changes in
circumstances warrant that the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of an asset to future net
discounted cash flows expected to be generated by the asset. If such
assets are considered to be impaired, the impairment to be recognised
is measured by the amount by which the carrying amount of the asset
exceeds the fair value of the asset.
1.07 Investment:
The Company does not provide for temporary diminution in value of long
term investments, if any, Exchange Gain / (Loss) on Investments in
Foreign Currency has been provided at the year end.
1.08 Inventories:
(a) Inventories are valued as under after providing for obsolescence:
(i) Raw Materials - At Cost (Moving Weighted Average Method)
(ii) Work-in-Process - At Material Cost plus labour and other
appropriate portion of production and administrative overheads and
depreciation.
(iii) Finished Goods - At lower of cost or realisable value. Cost is
inclusive of any taxes and duties incurred.
(iv) Stores Spares etc. - At Cost
(v) Arising's - At realisable value
(b) (i) Raw-materials include stock-in-transit and goods lying in
Bonded Warehouses.
(ii) Finished goods include stock-in-transit at Docks awaiting Shipment
and stocks with consignees.
(iii) Inventory includes goods lying with third party / job workers /
consignees.
1.09 Provision for Taxation:
Income tax expense is the aggregate amount of Current tax, Wealth Tax &
Deferred Tax. Current Year taxes are determined in accordance with the
provisions of Income Tax Act, 1961 and Wealth Tax Act, 1957.
Deferred tax charged or credit reflects the tax effect of timing
differences between accounting income and taxable income for the
period. The deferred tax charged or credit and the corresponding
deferred tax liability or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
dates.
1.10 Earning Per Share (EPS):
The Company reports basic and diluted earning per share in accordance
with AS-20 "Earning per Share" issued by the Institute of Chartered
Accountants of India (ICAI). Basic earning per share is computed by
dividing the net profit after tax by the weighted average number of
shares outstanding for the year.
1.11 Accounting for Provisions, Contingent liabilities and Contingent
Assets:
(a) In conformity with AS-29, "Provisions, Contingent Liabilities and
Contingent Assets", issued by the ICAI. The Company recognizes
provisions only when it has a present obligation as a result of a past
event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and when a reliable
estimate of the amount of the obligation can be made.
(b) No provision is recognised for:
(i) Any possible obligation that arises from past events and the
existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within
the control of the Company; or
(ii) Any present obligation that arises from past events but is not
recognised because:
(1) It is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; or
(2) A reliable estimate of the amount of obligation cannot be made.
Such obligations are recorded as Contingent Liabilities. These are
assessed at regular intervals and only that part of the obligation for
which an outflow of resources embodying economic benefits is probable,
is provided for, except in the extremely rare circumstances where no
reliable estimate can be made.
(iii) Contingent Assets are not recognised in the financial statements
as this may result in the recognition of income that may never be
realised.
1.12 Export entitlements / obligations:
(a) Duty free import of raw materials under Advance Authorisation
(DEEC) for imports as per import and export policy are matched with
exports made / produced. Benefit / Obligation are accounted by making
suitable adjustments in raw material consumption.
(b) The benefits accrued under the Duty Entitlement Pass Book Scheme
(DEPB) and Duty Free Import Authorisation (DFIA) as per the relevant
import and export policies during the year are included under the head:
(i) Sales: Export incentives
(ii) Raw material consumed
(iii) Stores & Rolls consumed
(c) Export incentives receivable on export performance are recognised
in pursuance to "Accounting Standard 9 on Revenue Recognition",
(AS-9) with reference to certainty of collectability of such export
incentives.
1.13 (a) Sales are recognised at the time of dispatch to customers /
endorsement of documents and includes Central Excise Duty; as may be
applicable.
(b) Finished goods captively consumed as packing materials are excluded
from sales. Transfer Price, as taken in Central Excise Duty records, is
treated as the packing material cost.
1.14 Deferred sales tax incentive available to the Company under
Maharashtra Value Added Tax (MVAT) is recognised as sales in case Net
present value (NPV) is duly paid to the designated authority before the
approval of annual accounts.
1.15 Cold Rolled (C.R.) Coils Production excludes C.R. baby coils
produced.
1.16 Customs Duty:
The Company has been accounting for custom duty liability, as may be
applicable, in respect of imported raw material lying in bonded
warehouse as and when they are ex-bonded.
1.17 Central Excise Duty and Service Tax:
(a) The Company is accounting liability for excise duty on finished
goods as and when goods are cleared as per consistent practice, in
pursuance to the accepted practice of the Excise authorities.
(i) Inventory valuation
(1) Finished goods in the plant at the close of the year are valued
inclusive of excise duty.
(2) Raw materials and work in process are valued exclusive of Cenvat
claimed.
(ii) Profit / Loss for the year remain unaffected by inclusion /
exclusion of Excise Duty in inventory valuation referred in clauses (1)
and (2) above.
(b) The Company is accounting liability for Service Tax for services
purchased, at the time of payment. The credit for Input Services Tax is
claimed as per appropriate laws, rules and regulations.
1.18 Commodity Hedging Transactions:
In respect of commodity hedging transactions, the gain / (loss) on
settlement and provisions for gain / (loss) at year end are
appropriately accounted along with material cost in Profit and Loss
Account.
1.19 Inter Unit transactions are eliminated to the extent possible.
1) 11.25 % Non Convertible Redeemable Debentures are secured by first
pari passu Mortgage of all immovable property and hypothecation of all
movable properties including movable machineries, machinery spares,
tools and accessories both present and future except packing machine
supplied by PESMEL Finland.
2) Term Loan from Banks and Financial Institutions namely Axis Bank,
Bank of Baroda, Dena Bank, Exim Bank of India, Oriental Bank of
Commerce, Punjab National Bank, State Bank of India, Syndicate Bank,
State Bank of Hyderabad,IDFC and ICICI Bank Limited are secured by
mortgage and the lenders have pari passu charge on all the present and
future movable and immovable assets of the Company except Packing
Machine supplied by PESMEL Finland but not limited to plant and
machinery, machinery spares, tools and accessories in possession or
not, stored, or to be brought in companies premises or lying at any
other place of the companies representative affiliates and all the
intangible assets of the company. The above security will rank pari
passu amongst the lenders.
3) ECB Loan from ICICI Bank Limited are secured by Mortgage of all
immovable property and hypothecation of all movable properties
including movable machineries, machineries spares, tools and
accessories both present and future except packing machine supplied by
PESMEL Finland.
4) ECA from Nordea Bank is secured by hypothecation of Packing Machine
supplied by PESMEL Finland.
5) Term Loan from ICICI Bank Limited, IFCI, LIC, GIC, and UII ranking
pari pasu are secured by Mortgage of all immovable property and
hypothecation of all movable properties including movable machineries,
machineries spares, tools and accessories both present and future
except packing machine supplied by PESMEL Finland.
25,02,500 Equity Shares (Previous Year 25,02,500 equity shares) held by
Promoters are pledged against term loan of Rs 9.55 Crores availed from
ICICI Bank Limited.
Working Capital Loans from Banks on Cash Credit (CC) & Packing Credit
(PC) Accounts are Secured by Hypothecation of all Tangible, Moveable
assets such as Raw Material, WIP, Finished Goods, Stock in Transit and
Book Debts etc. and the second charge on fixed assets of the Company
except Packing Machine supplied by PESMEL, Finland.
# Sales includes Rs 832.09 Crores ( Previous Year Nil )towards sales
from trial run/stabilisation of Production, of 4 Hi Skin Pass Mill
* GP Sales includes Rs 698.75 Crores ( Previous Year Nil ) towards sales
during stabilisation of Super Galvanising Line (SGL)
** Sales of surplus generated Power includes Rs 66.92 Crores towards
sales during stabilisation of Captive Power Plant (CPP) *** Sale of
Manufactured Goods includes Export Sales Rs 1066.96 Crores (Previous
Year Rs 932.97 Crores).
The Company has provided for Unclaimed Leave Encashment Benefits as at
31st March, 2012 to the tune of Rs 5.99 Crores.
Liability for employee benefits in respect of gratuity has been
determined by an actuary, appointed for the purpose, in conformity with
the principles set out in the Accounting Standard 15 (Revised) the
details of which are as follows:
Mar 31, 2011
(a) Basis of Accounting :
The financial statements are prepared under the historical cost
convention on accrual basis of accounting in accordance with the
generally accepted accounting principles, on going concern basis, and
in line with accounting standards issued by the Institute of Chartered
Accountants of India, as applicable, and the provisions of the
Companies Act, 1956.
(b) Use of Estimates :
The Preparation of financial statements in conformity GAAP requires
that the Management of the Company makes estimates and assumptions that
affect the reported amounts of income and expenses of the period, the
reported balances of assets and liabilities and the assumptions
relating to contingent liabilities as on the date of the financial
statements. Examples of such estimates include the useful life of
tangible and intangible fixed assets, provision for doubtful
debts/advances, future obligation in respect of retirement benefit
plans, etc. Difference, if any, between the actual results and
estimates is recognized in the period in which the results are known.
(c) Revenue Recognition :
The Company recognizes revenue on the sale of products when the
products are despatched to the customer or when delivered to the ocean
carrier for export sales, which is when risks and rewards of ownership
are passed to the customer.
1.02 Foreign Currency Loans/Transactions:
(a) Import Transactions :
(i) Material imports are accounted at the custom exchange rates
prevailing at the time of receipts. In case foreign exchange is
covered, the exchange rate contracted is recognized as a part of
purchase cost. Exchange Fluctuations, if any, at the time of
retirement, are appropriately accounted as a part of material
(purchase) cost. Similarly Bills Payable (balances) at year end are
accounted at exchange rate prevailing at year end (as per revised AS -
11).
(ii) Import contracts covered by Ãforeign exchange cover' with banks
are booked at contracted rates. Income / Expenditure incurred in
cancellation of forward cover contracts, mainly due to variation in the
bank involved / date of execution are treated as part of purchase cost.
(b) Export Transactions :
(i) Export transactions are accounted at the custom exchange rates
prevailing at the time of shipments.
Exchange fluctuations, if any, at the time of realisation are
appropriately accounted.
(ii) Exports, contracts covered by foreign exchange Ãcover' with banks,
are booked at contracted rates. Income / expenditure incurred in case
of cancellation of forward cover contracts, mainly due to variation in
bank involved/date of execution are treated as export realisation.
(iii) In case receipt of Export Advances, exchange rates prevailing on
date of receipts (of advances) is treated as relevant exchange rate
(for exports).
(c) (i) Foreign Currency Term Loan Contracts, covered by Foreign
Exchange Swaps are booked at contracted rates.
(ii) Other Foreign Currency Term Loans (balances) are accounted at
Exchange Rate prevailing at the year end; and such gain / loss is
considered as finance cost.
(d) Such gain / loss in transactions referred in para (c) above, and
other foreign currency contracts and / or derivative contracts and
relevant exchange gain/loss there to, are considered as finance cost.
1.03 Interest on Term Loans, Premium on redemption of Debentures /
Debts:
(i) Pursuant to the Reschedule / Realignment Scheme, interest payable
during 2000-2009 financial years is lower than the average interest
rate during 2000-2014 financial years. The company is treating interest
payable (yearly rate) as interest accrued.
(ii) On reschedulement and realignment of term debts, financial cost
incurred is treated as accrued on date of realignment of realigned term
debts and provided in the relevant financial year.
1.04 Employee Benefits :
A. Short Term Employee Benefits :
All employee benefits payable / available within 12 months of rendering
the services are classified as short term employee benefits. Benefits
such as salaries, wages, bonus etc, are recognized in the Profit & Loss
Account in the period in which the employee renders the related
services.
B. Long Term Employee Benefits :
(i) The Company has taken Group Gratuity Policy with the Life Insurance
Corporation of India (LIC) for future payment of Gratuities.
Any deficit in Plan Assets managed by LIC and as compared to the
Actuarial Liability is recognized as a liability immediately.
(ii) Leave Encashment benefit shall be accrued at the year end.
1.05 The Treatment of Expenditure during Construction Period :
(a) Expenditure directly related to particular fixed assets is
capitalized to those fixed assets. All indirect expenses are
apportioned to various fixed assets on a reasonable basis. This is done
once the construction and erection work is completed, pending which the
accumulated amount is disclosed as Capital Work-in- progress Pending
capitalization under fixed asset.
(b) Interest on Loans are capitalised upto the date on which the asset
is ÃPut to Use'. Interest includes exchange fluctuation on Foreign
Currency Term Loans.
It is in line with Accounting Standards on Borrowing Cost and long term
foreign currency debts and Accounting Standards on Fluctuation on
Foreign Exchange currency.
(c) The Income and Expenditure during trial runs is included in the
Profit & Loss Account. Excess of expenditure over income is
capitalised.
(d) Temporary surplus in short term i.e. liabilities over assets are
used for Capital Work In Progress. Interest and consequential cost is
appropriately accounted / reimbursements.
(e) Upfront Expenses incurred on mobilisation of term debts is treated
as a part of Capital Cost of relevant project.
1.06 Fixed Assets and Depreciation :
(a) Fixed assets are carried at cost less accumulated depreciation.
(b) Cost excludes Cenvat credit, sales tax and service tax credit and
such other levies / taxes. Depreciation on such assets is claimed on
Ãreduced' cost.
(c) Depreciation on fixed assets has been provided on straight line
method at the rates specified, in the Schedule XIV of the Companies
Act, 1956, in Line with Notification No. GSR/756(E) dated, 16th
December, 1993.
(d) Depreciation on assets acquired during the year has been provided
on pro-rata basis; from the date on which it is ÃPut to Use'.
1.06 A. Impairment of Assets :
Fixed Assets are reviewed for impairment whenever events or changes in
circumstances warrant that the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of an asset to future net
discounted cash flows expected to be generated by the asset. If such
assets are considered to be impaired, the impairment to be recognised
is measured by the amount by which the carrying amount of the asset
exceeds the fair value of the asset.
1.07 Investment :
The company does not provide for temporary diminution in value of long
term investments, if any. Exchange Gain / (Loss) on Investments in
Foreign Currency has been provided at the year end.
1.08 Inventories :
(a) Inventories are valued as under after providing for obsolescence :
(i) Raw Materials à At Cost (Moving Weighted Average Method)
(ii) Work-in-Process à At Material Cost plus labour and other
appropriate portion of production and administrative overheads
and depreciation.
(iii) Finished Goods à At lower of cost or realisable value.
Cost is inclusive of any taxes and duties incurred.
(iv) Stores spares etc.à At Cost (v) Arisings à At realisable value
(b) (i) Raw-materials include stock-in-transit and goods lying in
Bonded Warehouses .
(ii) Finished goods include stock-in-transit at Docks awaiting Shipment
and stocks with consignees. (iii) Inventory includes goods lying with
third party / job workers / consignees.
1.09 Provision for Taxation :
Income tax expense is the aggregate amount of Current tax, Wealth Tax &
Deferred Tax. Current year taxes are determined in accordance with the
provisions of Income Tax Act, 1961 and Wealth Tax Act. Deferred tax
charged or credit reflects the tax effect of timing differences between
accounting income and taxable income for the period. The deferred tax
charged or credit and the corresponding deferred tax liability or
assets are recognized using the tax rates that have been enacted or
substantively enacted by the balance sheet dates.
1.10 Earning per Share :
The Company reports basic and diluted earning per share in accordance
with AS-20 ÃEarning per Share' issued by the ICAI. Basic earning per
share is computed by dividing the net profit after tax by the weighted
average number of shares outstanding for the year.
1.11 Accounting for Provisions, Contingent liabilities and Contingent
Assets :
(a) In conformity with AS-29, ÃProvisions, Contingent Liabilities and
Contingent Assets', issued by the Institute of Chartered Accountants of
India. The Company recognizes provisions only when it has a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation, and when a reliable estimate of the amount of the
obligation can be made.
(b) No provision is recognised for :
(i) Any possible obligation that arises from past events and the
existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within
the control of the Company; or
(ii) Any present obligation that arises from past events but is not
recognised because:
(1) It is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; or
(2) A reliable estimate of the amount of obligation cannot be made.
Such obligations are recorded as Contingent Liabilities. These are
assessed at regular intervals and only that part of the obligation for
which an outflow of resources embodying economic benefits is probable,
is provided for, except in the extremely rare circumstances where no
reliable estimate can be made.
(iii) Contingent Assets are not recognised in the financial statements
as this may result in the recognition of income that may never be
realised.
1.12 Export entitlements / obligations :
(a) Duty free import of raw materials under Advance Authorisation
(DEEC) for imports as per import and export policy are matched with
exports made / produced. Benefit / Obligation are accounted by making
suitable adjustments in raw material consumption.
(b) The benefits accrued under the Duty Entitlement Pass Book Scheme
(DEPB) and Duty Free Import Authorisation (DFIA) as per the relevant
import and export policies during the year are included under the head:
(i) Sales : Export incentives
(ii) Raw material consumed
(iii) Stores & Rolls consumed
(c) Export incentives receivable on export performance are recognised
in pursuance to ÃAccounting Standard 9 on Revenue Recognition', (AS-9)
with reference to certainty of collectability of such export
incentives.
1.13 (a) Sales are recognised at the time of despatch to customers/
endorsement of documents and includes Central
Excise Duty; as may be applicable.
(b) Finished goods captively consumed as packing materials are excluded
from sales. Transfer Price, as taken in Central Excise Duty records, is
treated as the packing material cost.
1.14 Deferred sales tax incentive available to the Company under
Maharashtra Value Added Tax (MVAT) is recognised as sales in case Net
present value (NPV) is duly paid to the designated authority before the
approval of annual accounts.
1.15 C. R. Coils Production excludes C.R. baby coils produced.
1.16 Customs Duty :
The Company has been accounting for custom duty liability, as may be
applicable, in respect of imported raw material lying in bonded
warehouse as and when they are ex-bonded.
1.17 Central Excise Duty and Service Tax :
(a) The Company is accounting liability for excise duty on finished
goods as and when goods are cleared as per consistent practice, in
pursuance to the accepted practice of the Excise authorities.
(i) Inventory valuation
(1) Finished goods in the plant at the close of the year are valued
inclusive of excise duty.
(2) Raw materials and work in process are valued exclusive of Cenvat
claimed.
(ii) Profit / Loss for the year remain unaffected by inclusion /
exclusion of Excise Duty in inventory valuation referred in clauses (1)
and (2) above.
(b) The Company is accounting liability for Service Tax for services
purchased, at the time of payment. The credit for Input Services Tax is
claimed as per appropriate laws, rules and regulations.
1.18 Commodity Hedging Transactions :
In respect of commodity hedging transactions, the gain / loss on
settlement and provisions for gain / losses at year end are
appropriately accounted along with material cost.
1.19 Inter Unit transactions are eliminated to the extent possible B.
Mar 31, 2010
1.01 (a) Basis of Accounting:
The financial statements are prepared under the historical cost
convention on accrual basis of accounting in accordance with the
generally accepted accounting principles, on going concern basis, and
in line with accounting standards issued by the Institute of Chartered
Accountants of India, as applicable, and the provisions of the
Companies Act, 1956.
(b) Use of Estimates:
The Preparation of financial statements in conformity GAAP requires
that the Management of the Company makes estimates and assumptions that
affect the reported amounts of income and expenses of the period, the
reported balances of assets and liabilities and the assumptions
relating to contingent liabilities as on the date of the financial
statements. Examples of such estimates include the useful life of
tangible and intangible fixed assets, provision for doubtful
debts/advances, future obligation in respect of retirement benefit
plans, etc. Difference, if any, between the actual results and
estimates is recognized in the period in which the results are known.
(c) Revenue Recognition:
The Company recognizes revenue on the sale of products when the
products are despatched to the customer or when delivered to the ocean
carrier for export sales, which is when risks and rewards of ownership
are passed to the customer.
1.02 Foreign Currency Loans/Transactions:
(a) Import Transactions:
(i) Material imports are accounted at the custom exchange rates
prevailing at the time of receipts. In case foreign exchange is
covered, the exchange rate contracted is recognized as a part of
purchase cost. Exchange Fluctuations, if any, at the time of
retirement, are appropriately accounted as a part of material
(purchase) cost. Similarly Bills Payable (balances) at year end are
accounted at exchange rate prevailing at year end (as per revised AS -
11).
(ii) Import contracts covered by foreign exchange cover with banks
are booked at contracted rates. Income / Expenditure incurred in
cancellation of forward cover contracts, mainly due to variation in the
bank involved/ date of execution are treated as part of purchase cost.
(b) Export Transactions:
(i) Export transactions are accounted at the custom exchange rates
prevailing at the time of shipments.
Exchange fluctuations, if any, at the time of realisation are
appropriately accounted.
(ii) Exports, contracts covered by foreign exchange cover with banks,
are booked at contracted rates. Income / expenditure incurred in case
of cancellation of forward cover contracts, mainly due to variation in
bank involved/date of execution are treated as export realisation.
(iii) In case receipt of Export Advances, exchange rates prevailing on
date of receipts (of advances) is treated as relevant exchange rate
(for exports).
(c) (i) Foreign Currency Term Loan Contracts, covered by Foreign
Exchange Swaps are booked at contracted rates.
(ii) Other Foreign Currency Term Loans (balances) are accounted at
Exchange Rate prevailing at the year end; and such gain / loss is
considered as finance cost.
(d) Such gain/loss in transactions referred in para (c) above, and
other foreign currency contracts and/or derivative contracts and
relevant exchange gain/loss there to, are considered as finance cost.
1.03 Interest on Term Loans, Premium on redemption of Debentures /
Debts:
(i) Pursuant to the Reschedule / Realignment Scheme, interest payable
during 2000-2009 financial years is lower than the average interest
rate during 2000-2014 financial years. The company is treating interest
payable (yearly rate) as interest accrued.
(ii) On reschedulement and realignment of term debts, financial cost
incurred is treated as accrued on date of realignment of realigned term
debts and provided in the relevant financial year.
1.04 Employee Benefits:
A. Short Term Employee Benefits
All employee benefits payable/available within 12 months of rendering
the services are classified as short term employee benefits. Benefits
such as salaries, wages, bonus etc, are recognized in the P&L account
in the period in which the employee renders the related services.
B. Long Term Employee Benefits
(i) The Company has taken Group Gratuity Policy with the Life Insurance
Corporation of
India (LIC) for future payment of Gratuities.
Any deficit in Plan Assets managed by LIC and as compared to the
Actuarial Liability is recognized as a liability immediately.
(ii) Leave Encashment benefit shall be accrued at the year end.
1.05 The Treatment of Expenditure during Construction Period:
(a) The Company accounts for expenditure during construction period as
per the ÃGuidance Note on Treatment of Expenditure during Construction
Periodà - issued by Institute of Chartered Accountants of India.
Expenditure directly related to particular fixed assets is capitalized
to those fixed assets. All indirect expenses are apportioned to
various fixed assets on a reasonable basis. This is done once the
construction and erection work is completed, pending which the
accumulated amount is disclosed as Capital Work-in-progress Pending
capitalization under fixed asset.
(b) Interest on Loans are capitalised upto the date on which the asset
is Put to Use. Interest includes exchange fluctuation on Foreign
Currency Term Loans.
It is in line with Accounting Standards on Borrowing Cost and long term
foreign currency debts and Accounting Standards on Fluctuation on
Foreign Exchange currency.
(c) The Income and Expenditure during trial runs is included in the
Profit & Loss Account. Excess of expenditure over income is
capitalised.
(d) Temporary surplus in short term i.e. liabilities over assets are
used for Capital Work In Progress. Interest and consequential cost is
appropriately accounted / reimbursements.
(e) Upfront Expenses incurred on mobilisation of term debts is treated
as a part of Capital Cost of relevant project.
1.06 Fixed Assets and Depreciation:
(a) Fixed assets are carried at cost less accumulated depreciation.
(b) Cost excludes Cenvat credit, sales tax and service tax credit and
such other levies / taxes. Depreciation on such assets is claimed on
reduced cost.
(c) Depreciation on fixed assets has been provided on straight line
method at the rates specified, in the Schedule XIV of the Companies
Act, 1956, in Line with Notification No. GSR/756(E) dated, 16th
December 1993.
(d) Depreciation on assets acquired during the year has been provided
on pro-rata basis; from the date on which it is Put to Use.
1.06 (a) Impairment of Assets:
Fixed Assets are reviewed for impairment whenever events or changes in
circumstances warrant that the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of an asset to future net
discounted cash flows expected to be generated by the asset. If such
assets are considered to be impaired, the impairment to be recognised
is measured by the amount by which the carrying amount of the asset
exceeds the fair value of the asset.
1.07 Investment:
The company does not provide for temporary diminution in value of long
term investments, if any. Exchange Gain/(Loss) on Investments in
Foreign Currency has been provided at the year end.
1.08 Inventories:
(a) Inventories are valued as under after providing for obsolescence:
(i) Raw Materials - At Cost (Moving Weighted Average Method)
(ii) Work-in-Progress - At Material Cost plus labour and other
appropriate portion of production and
administrative overheads and depreciation.
(iii) Finished Goods - At lower of cost or realisable value.
Cost is inclusive of any taxes and duties
incurred.
(iv) Stores spares etc.- At Cost
(v) Arisings - At realisable value
(b) (i) Raw-materials include stock-in-transit and goods lying in
Bonded Warehouses.
(ii) Finished goods include stock-in-transit at Docks awaiting Shipment
and stocks with consignees.
(iii) Inventory includes goods lying with third party / job workers /
consignees.
1.09 Provision for Taxation
Income tax expense is the aggregate amount of Current tax, Wealth Tax &
Deferred Tax. Current year taxes are determined in accordance with the
provisions of Income Tax Act, 1961 and Wealth Tax Act.
Deferred tax charged or credit reflects the tax effect of timing
differences between accounting income and taxable income for the
period. The deferred tax charged or credit and the corresponding
deferred tax liability or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
dates.
1.10 Earning per Share:
The Company reports basic and diluted earning per share in accordance
with AS-20 Earning per Share issued by the ICAI. Basic earning per
share is computed by dividing the net profit after tax by the weighted
average number of shares outstanding for the year.
1.11 Accounting for Provisions, Contingent liabilities and Contingent
Assets
(a) In conformity with AS-29, Provisions, Contingent Liabilities and
Contingent Assets, issued by the Institute of Chartered Accountants of
India. The Company recognizes provisions only when it has a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation, and when a reliable estimate of the amount of the
obligation can be made.
(b) No provision is recognised for:
(i) Any possible obligation that arises from past events and the
existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within
the control of the Company; or
(ii) Any present obligation that arises from past events but is not
recognised because:
(1) It is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; or
(2) A reliable estimate of the amount of obligation cannot be made.
Such obligations are recorded as Contingent Liabilities. These are
assessed at regular intervals and only that part of the obligation for
which an outflow of resources embodying economic benefits is probable,
is provided for, except in the extremely rare circumstances where no
reliable estimate can be made.
(iii) Contingent Assets are not recognised in the financial statements
as this may result in the recognition of income that may never be
realised.
1.12 Export entitlements / obligations:
(a) Duty free import of raw materials under Advance Authorisation
(DEEC) for imports as per import and export policy are matched with
exports made / produced. Benefit / Obligation are accounted by making
suitable adjustments in raw material consumption.
(b) The benefits accrued under the Duty Entitlement Pass Book Scheme
(DEPB) and Duty Free Import Authorisation (DFIA) as per the relevant
import and export policies during the year are included under the head:
(i) Sales: Export incentives
(ii) Raw material consumed
(iii) Stores & Rolls consumed
(c) Export incentives receivable on export performance are recognised
in pursuance to Accounting Standard 9 on Revenue Recognition, (AS-9)
with reference to certainty of collectability of such export
incentives.
1.13 (a) Sales are recognised at the time of despatch to customers/
endorsement of documents and includes Central Excise Duty; as may be
applicable.
(b) Finished goods captively consumed as packing materials are excluded
from sales. Transfer Price, as taken in Central Excise Duty records, is
treated as the packing material cost.
1.14 Deferred sales tax incentive available to the Company under
Maharashtra Value Added Tax (MVAT) is recognised as sales in case Net
present value (NPV) is duly paid to the designated authority before the
approval of annual accounts.
1.15 C.R. Coils Production excludes C.R. baby coils produced.
1.16 Customs Duty:
The Company has been accounting for custom duty liability, as may be
applicable, in respect of imported raw material lying in bonded
warehouse as and when they are ex-bonded.
1.17 Central Excise Duty and Service Tax:
(a) The Company is accounting liability for excise duty on finished
goods as and when goods are cleared as per consistent practice, in
pursuance to the accepted practice of the Excise authorities.
(i) Inventory valuation
(1) Finished goods in the plant at the close of the year are valued
inclusive of excise duty.
(2) Raw materials and work in process are valued exclusive of Cenvat
claimed.
(ii) Profit / Loss for the year remain unaffected by
inclusion/exclusion of Excise Duty in inventory valuation referred in
clauses (1) and (2) above.
(b) The Company is accounting liability for Service Tax for services
purchased, at the time of payment. The credit for Input Services Tax is
claimed as per appropriate laws, rules and regulations.
1.18 Inter Unit transactions are eliminated to the extent possible.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article