| |
| Year End: March 2014 |
Disclosure of accounting policies, change in accounting policies and changes in estimates explanatory| SIGNIFICANT ACCOUNTING POLICIES: | | | | | a) | GENERAL | | | | | | | | Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles. | | | | | | | | | | | | b) | BASIS OF ACCOUNTING | | | | | | | All income and expenditure are accounted for on accrual basis except the items of indeterminable nature. | | | | | | | | | | | | c) | EXCISE DUTY | | | | | | | | Excise duty liability on finished goods manufactured and lying in the factory is accounted for and the corresponding amount is considered for valuation thereof. | | | | | | | | | | | | d) | FIXED ASSETS | | | | | | | Fixed Assets are stated at cost less accumulated debrciation and impairment losses, if any. Cost comprises the cost of acquisition/ purchase price inclusive of duties, taxes, incidental expenses, erection/ commissioning expenses, interest etc. up to the date the asset is ready for its intended use. Credit of duty, if availed, is adjusted in the acquisition cost of the respective fixed assets. | | | | | | | | | | | | | | | e) | DEbrCIATION | | | | | | | Debrciation on Fixed Assets has been provided on written down value basis at the rates specified in Schedule XIV to the Companies Act, 1956, as amended till date. | | | | | | | | | | | | f) | INVENTORY | | | | | | | | i) | Raw Material and Stores & Spares are valued at cost and is net of modvat credit availed. | | ii) | Finished Goods are valued at estimated cost (inclusive of excise) or market value whichever is lower. | | | | iii) | Scraps are valued at estimated realisable value. | | | | | | | | | | | g) | REVENUE RECOGNITION | | | | | | | Sale is inclusive of excise duty, export benefits and inter-divisional transfer but net of returns, rebates and sales tax. Material returned/rejected are accounted for in the year of return/rejection. Sales net of excise duty and inter-divisional transfer is also disclosed separately. | | | | | | | | | | | | | | h) | FOREIGN CURRENCY TRANSACTIONS | | | | | Foreign currency transactions are recorded at the rate of exchange brvailing at the date of the transaction. Monetary foreign currency assets and liabilities are translated at the year-end exchange rates and resultant gains/losses are recognised in the Profit & Loss account for the year. | i) | TAXES ON INCOME | | | | | | Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with Income Tax Act, 1961. | | | | | | | | | | | In accordance with Accounting Standard (AS-22) "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred taxes resulting from timing differences between book and tax profits are accounted for at the tax rate substantively enacted by the Balance Sheet date to the extent there is vertual / reasonable certainty of realising such assets against future taxable income. | | | | | | | | | | | | | | j) | Earning Per Share | | | | | | Basic and Diluted Earning per Share are computed in accordance with AS 20-Earning Per Share. Basic earnings per Equity Share is computed by dividing net profit after tax by the weighted average number of Equity Shares outstanding during the year. The Diluted Earning per Share is computed using the weighted average number of Equity Shares and Diluted Potential Equity Shares outstanding during the year. | | | | |
| | | |
| SEGMENT REPORTING | | | | | | Based on guiding principle given in Accounting Standered 17 'Segment reporting, Issued by the Institute of Chartered Accountants of India. | |
| | | | | | | | | i) | Information about Primary Segment (Business Segment): | | | | | a) | From the manufacturing business of Steel and Engineering Goods i.e. Steel Coils, Pipes & Tubes,MS flats, W Beams etc. the company earned a Net Profit before Tax & Depricaition of Rs.6,23,61,954/- (Previous year Rs.5,04,93,964/-) on a Turnover of Rs.3,85,66,27,113/- (Previous Year Rs.3,69,38,90,651/-). | | | | | | | | | | | | | b) | From the business of immovable properties the Company earned gross rental income of Rs.1,38,75,000/- (Previous Year, including turnover of property Rs.2,34,57,419/-) and after incurring direct expenses thereto the Net Profit before Tax and Debrciation is Rs.1,20,41,569/- (Previous Year Rs.1,34,66,648/-) | | | | | | | | | | | | | ii) | Secondary Segment (Geographical Segments) | | | | | The Company's operating facilities are located only in India. |
|
|
|
|