1 Summary of significant accounting policies a) Basis of brparation The financial statements of the company have been brpared in accordance with generally accepted accounting principles in India (India GAAP). The company has brpared these financial statements to comply in all material respects with the accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared on an accrual basis and under the historical cost convention. b) Use of estimates The brparation of financial statements in conformity with India GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainly about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. c) Fixed Assets Fixed Assets have been stated at cost of acquisition inclusive of expenses directly attributable to the acquisition of such assets. Elements of refundable duties and taxes on capital goods purchased have been reduced from the total cost of such assets. d) Debrciation Debrciation on fixed assets is provided on Written Down Value (WDV) Method based on useful life of the assets as brscribed in Schedule II to the Companies Act, 2013, except for Fixed Assets pertaining to Umbergaon Unit where debrciation is charged on Straight Line Method (SLM) based on useful life of the assets as brscribed in Schedule II to the Companies Act, 2013. e) Pre-operative Expenses and Allocation thereon All br-operative expenditure & trial run expenditure are accumulated as Capital Work-in-Progress and is allocated to the relevant fixed assets on a pro-rata / reasonable basis. f) Valuation of Inventories i) Raw Materials have been valued at lower of cost or net realisable value based upon FIFO method except where the material is specifically identifiable. ii) Work-in-progress has been valued on cost of raw-material and other direct cost dependng upon the stage of completion of production in general. iii) Finished goods and trading stocks have been valued at lower of cost or net realisable value based upon FIFO method except where the finished goods are specifically identifiable. iv) Scrap, defectives and inferior production have been valued at net realisable value. v) Stores, spares and consumables have been valued at lower of cost or net realisable value. Cost/Rate considered above for valuation of inventory is exclusive of Cenvat, refundable CVD and VAT component and inclusive of other direct cost incurred for acquiring the respective material. g) Material Events occurring after the Balance Sheet date Material events occurring after the date of Balance Sheet have been taken cognizance of liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty have been treated as contingent liability and are disclosed by way of notes to accounts. h) Revenue Recognition A sale is recognized at the time of dispatching the goods to the customer excluding Value Added Tax & Excise Duty collection. Purchases including import purchases are recognized net of refundable Value Added Tax and Duty component at the time of receipt of goods. Export benefits have been recognized at the time of making the export sales & valued on estimated monetary benefit receivable there from. i) Foreign Exchange Transactions i) Transactions denominated in foreign currencies are recorded at the exchange rates brvailing on the date of the transaction. ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognized as exchange difference. iii) Non monetary foreign currency items are carried at cost. iv) Exchange differences, other than those which are regarded as an adjustment to interest cost, arising on repayment of liabilities and conversion of year-end foreign currency balances pertaining to long term loans for acquiring debrciable assets including capital work in progress are adjusted in the carrying cost of these assets. v) The brmium or discount arising at the inception of a forward exchange contract not intended for trading or speculation purpose is amortised as expense or income over the life of the contract. Exchange difference on account of change in rates of underlying currency at the year end is recognized in the Statement of Profit and Loss. Any profit or loss arising on cancelation or renewal of such a forward exchange contract is recognized as income or expense for the Year. In recording a forward exchange contract intended for trading or speculation purpose, the brmium or discount on the contract is ignored and at each Balance Sheet date, the value of the contract is marked to its current market value and gain or loss on the contract is recognized in the Statement of Profit and Loss. vi) The exchange difference arising on revenue and other account except as stated under (iv) above and (p) below is adjusted in the Statement of Profit and Loss. j) Employee Benefits i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered. ii) Post employment and other long term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the brsent value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit and Loss. k) Preliminary and Share Issue Expenses Preliminary and Share Issue expenses are written off in the year in which such expenditure is incurred. l) Excise Duty on Finished Goods Excise duty is accounted on the basis of both, payments made in respect of goods cleared and also provision made for goods lying in the stock as at the year end. m) Duties and Taxes on Purchases Refundable duties and taxes on purchase of Raw Materials, other eligible inputs and capital goods are adjusted against duties and taxes payable. The unadjusted credits of such duties and taxes are shown under the head "Loans and Advances". n) Export Benefits The Company accounts for Export Benefits under duty exemption Advance License Scheme of the Government of India, in the year of exports of goods. o) Prior Period Adjustment Expenses and income pertaining to earlier / brvious years are accounted as Prior Period Items. p) Borrowing Costs Borrowing costs directly attributable to the acquisition or construction of qualifying fixed assets are capitalised as part of cost of assets, up to the date, the asset is put to use. Borrowing costs also include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs. Other borrowing costs are charged to the Statement of Profit and Loss in the year in which they are incurred. q) Provision for Current and Deferred Tax Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing differences" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future. r) Investments Long Term investments are valued at cost. Provision for diminution in value of investment is made to recognize a decline other than temporary. Current investments are valued at cost or market value whichever is lower on the last day of financial year s) Impairment of Assets: An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which assets are identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been change in the estimate of recoverable amount. t) Provisions, Contingent liabilities and Contingent assets A provision is recognised when the Company has a brsent obligation as a result of past event and it is probable that an out flow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are notdiscounted to its brsent value and are determined based on best estimate required to settle the obligation at the balance sheet date.These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements. u) Earning Per Share (E.P.S.) Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year-end, except where the results would be anti dilutive. 1 The Company's pending litigations comprise of claims against the Company and proceedings pending with Statutory and Tax Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provision s, whenever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position (Refer note no 28 for details on contingent liabilities). 2 The Company periodically reviews all its long term contracts including derivative contracts to assess for any material foreseeable losses. Based on such review, the Company has made adequate provisions for these long term contracts in the books of account as required under any applicable law/ a ccounting standard. 3 For the year ended march 31, 2015. the Company is not required to transfer any amount into the investor education & protection fund. 4 Disclosure in respect of Corporate Social Responsibility Expenditure ( CSR ) is as under. (a) Gross amount required to be spent by the company during the year is Rs 4,850,465/- (b) Amount spent during the year is Rs Nil 5 Disclosure pursuant to clause 32 of the Listing Agreement: 6 During the brvious year, Company had initiated the development of the "Industrial Park Project" on its idle land at Palgam (Umbergaon) and accordingly, it had converted the Land from Fixed Assets into Stock-in-Trade at lower of cost or net realizable value i.e. at cost of Rs. 88,18,164/-. It had passed a special resolution for including real estate business activities as one of the main object and obtained approval from shareholders. However, the Company could not alter the main object clause of memorandum and articles of association as the Registrar of the Companies (ROC) has approved the same subject to change of name of the Company in line with proposed new business. Accordingly, during the year, it has reconverted the Land from stock-in-trade to Fixed Assets. 7 During the brvious year, Company has incorporated on 10th April, 2013, wholly-owned foreign subsidiary viz. Pioneer Stainless & Alloy - F.Z.C. at Ajman, United Arab Emirates for doing trade activities internationally in ferrous and non ferrous metal items. 8 Figures of the brvious year have been re-grouped, re-classified and re-arranged, wherever necessary. AS PER OUR REPORT OF EVEN DATE FOR KHANDELWAL JAIN & CO. CHARTERED ACCOUNTANTS Firm Registration No.: 105049W FOR BATLIBOI & PUROHIT CHARTERED ACCOUNTANTS Firm Registration No.: 1 01048W FOR AND ON BEHALF OF THE BOARD NA REN DRA JAIN PARTNER M. No. 048725 R. D. HANGEKAR PARTNER M.No. 030615 PRAKASH C. KANUGO ASHOK M. SETH CHAIRMAN & EXECUTIVE DIRECTOR & MANAGING DIRECTOR CHIEF FINANCIAL OFFICER PALLAVI P. SHEDGE COMPANY SECRETARY & COMPLIANCE OFFICER PLACE : MUMBAI MUMBAI : 30TH MAY, 2015 |