Note 1. Corporate information ICVL Steels Limited (the Company) is a Public Company and is incorporated under the provisions of The Companies Act,1956. The company is engaged in the Business of trading in Steels & Shares. Note Significant accounting policies 1 'Basis of accounting and brparation of financial statements The financial statements are brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards brscribed in the Companies (Accounting Standards) Rules, 2006 (as amended) issued by the Central Govt. in terms of section 211 (3C) of the Companies Act, 1956 (the Act) (which continue to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13 September of the Ministry of Corporate Affairs). The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year and comply with the mandatory accounting standards and statements issued by Institute of Chartered Accountants of India (ICAI). Assets and Liabilities are classified as current if it is expected to realise or settle within 12 months after Balance Sheet date. 2 'Use of estimates The brparation of the financial statements in conformity with Indian Generally Accepted Accounting Principles (Indian GAAP) requires the Management to make judgements, estimates and assumptions that affect the application of Accounting Policies and reported amounts of Assets and Liabilities, Income and Expenses and disclosure of Contingent Liabilities at the end of Financial Statements. The Management believes that the estimates made in the brparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise. 3 Tangible fixed assets 'Fixed assets, are stated at cost less accumulated debrciation / amortisation and impairment loss if any. Cost comprises the purchase price and any attributable cost of bring the assets to its working conditions for its intended use. Intangible assets Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss if any. 4 'Debrciation and amortisation Pursuant to the enactment of the Companies Act,2013 ('the Act), becoming effective from 1st April, 2014, the Company has applied the estimated useful life as specified in the schedule II, accordingly debrciation is Provided on Revised Carrying Amount of the Assets over it's remaining useful life on WDV Method. 'Debrciation in respect of Assets acquired / Purchased / sold / dicarded during the year has been provided on pro-rata basis. 'Intangible assets are amortised over useful life of the assets. 5 Investments Long term investments are stated at cost less provision, for diminution which is other than temporary in nature. Current investments stated at lower of cost or market value. 6 'Revenue recognition Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer and recorded net off trade discount Sales Tax/Value Added Tax Interest, as and when applicable, on refunds from statutory authorities is recognized when such interest is determinable, based on completed proceedings. Other interest income is recognized using time proportion method, based on interest rate implicit in the transactions. Profit on sale of investments is recognized on completion of transactions. 7 Expenses All materials known expenses and liabilities are provided for according to mercantile system on the basis of available information or estimates. 8 'Foreign currency transaction Transactions denominated in foreign currency are recorded at the exchange rates brvailing on the date of transactions. Exchange difference arising on foreign exchange transactions settled during the year are recognized in the profit and loss accounts of the year. 9 'Employee benefits Short term employee benefits are recognized as expenses at the undiscounted amounts in the year in which the related service is rendered. Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss Account of the year in which the employee has rendered services. The expense is recognized at the brsent value of the amount payable, determined as per Actuarial Valuations. Actuarial gains and losses in respect of post employment and long term employee benefits are recognized in the Profit and Loss Account. 10 'Taxes on income Tax expense comprises both current tax & deferred tax. Current tax is the amount of tax payable on the assessable income for the year determined in accordance with the provisions of Income Tax Act 1961. Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on unabsorbed tax losses and tax debrciation are recognised only when there is virtual certainty of their realiasation and or other items when there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The tax effect is calculated and recognised at the rate of Income Tax brvailing at the Balance Sheet date or at the substantively enacted tax rate, subject to the consideration of purdance as per the Accounting Standards - 22" Accounting for Taxes on Income". 11 'Provisions and contingencies 'A provision is recognised when there is brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably may not, require an outflow of resources. When there is a possible obligation or a brsent obligation in respect of which likely hood of outflow of resources is remote, no provision or disclosure is made. Loss contingencies arising from claims, litigations, assessments, fines, penalties etc. are recorded when it is probable that the liability has been incurred and the amount can be reasonably estimated. 13 'As regards compliance of Provision as per the requirement of Sec 22 of the Micro, Small and Medium enterprises act 2006 relating to dues to the Micro, Small and Medium enterprises. The company has not received from any parties claim to be small scale industries and the said information is not given. 14 'Segment Information The company is operating only in one segment. 15 Retirement Benefits 'Long Term Employee Benefits are not provided because no employee has completed full year of service. 16 Provision for Taxes Provision for current tax has been made as per the provisions of the Income Tax Act 1961. 17 'In the opinion of Management, the Current Assets, Loans and Advances are approximately of the value as stated if realised in the ordinary course of business. 18 'Balances standing to the debit/credit of parties is subject to confirmation by them and reviews by the Company. 19 The figures of the brvious year have been regrouped, rearranged and reclassified wherever necessary to conform to current year's classification. The Notes referred to above form an integral part of the Financial Statements As per our report of even date ForJ. B. Dudhela & Co. Chartered Accountants Firm Regn.- 102777W Sd/- J. B. Dudhela Proprietor M.Ship No. - 035354 For and on behalf of the Board of Directors of ICVL Steels Limited Sd/- Vipul Modi DIN : 00796116 Director Sd/- Leena Modi DIN :00796382 Director Place: Mumbai Date: May 30, 2015 |