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అకౌంట్స్ గమనికలుDina Iron & Steel Ltd.
Mar 31, 2013
I. INVENTORIES:
Stock -in-Trade has been taken, valued and certified by the management.
a) Inventories including Raw Materials and Stores spares & Equipment are valued at cost. Finished Goods is valued at lower of cost or net realizable value. Cost for this purpose includes purchase price and freight. Cost for the purpose of finished goods also includes cost of conversion. Scrap and waste is valued at net realisable value. The method of valuation of Stock is in accordance with Accounting Standard - 2. Inventories have been valued using the FIFO method.
b) As stated to us, there are numerous items in stock of stores & spares and, so, it is not possible to maintain the quantitative details of stores & spares. Hence, quantitative details of stock of spares have not been given.
II. Balance of Sundry receivables and payables are subject to forma! confirmation. All sundry debtors are unsecured but considered good by the management to the extent of their book value.
III. Estimated amount of capital contracts remaining to be executed not provided for net of advances :- Rs. NIL (Last year NIL)
IV. Claims against the company not acknowledge as debts Nil.
V. Previous year''s figures have been re-grouped and re-arranged wherever considered necessary.
VI. Remuneration to Directors Rs. 12,00,000.00/- (Previous Year 4,86,000/-).
VII. Secured Loan
Stock, Receivables and Plant & Machineries are hypothecated to the bank as security for amount borrowed
VIII BORROWING COST:
Borrowing Cost attributable to the acquisition and construction of qualifying assets are capitalized. After borrowing costs are recognised as an expense in period in which they are incurred.
IX. Recognition of Deferred Tax Liabilities
The provision for current Income Tax is based on the taxable profit from April 1, 2012 to March 31, 2013. Deferred Income Tax reflects the impacts of current year timing differences between taxable income/ losses and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance sheet date. Deferred tax are recognized only to the extents that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In respect of carry forward looses, deferred tax assets are recognized only to the extent there is virtual certainty that sufficient future taxable income will be available against which such losses can be set off.
Pursuant to AS-22 issued by The Institute of Chartered Accountants of India, Deferred Tax Liability of Rs. 28,25,895.00 which arose during the year on account of timing difference between amount of depreciation as per books of accounts and depreciation as claimed under the provisions of Income Tax Rules, 1962; amounts to Rs.7,22,604.00 which has been recognized in the books of accounts.
3. RETIREMENT BENFITS
Company''s contribution to PF, ESI etc. are charged to Statement of Profit & Loss on accrual basis.
4. RETIREMENTS LEAVE ENCASHMENT
Provision for gratuity liability is made on the basis of premium actuarially assessed at the end of the period and intimated by the Life Insurance Corporation of India in terms of a policy taken with them.
Stock -in-Trade has been taken, valued and certified by the management.
a) Inventories including Raw Materials and Stores spares & Equipment are valued at cost. Finished Goods is valued at lower of cost or net realizable value. Cost for this purpose includes purchase price and freight. Cost for the purpose of finished goods also includes cost of conversion. Scrap and waste is valued at net realisable value. The method of valuation of Stock is in accordance with Accounting Standard - 2. Inventories have been valued using the FIFO method.
b) As stated to us, there are numerous items in stock of stores & spares and, so, it is not possible to maintain the quantitative details of stores & spares. Hence, quantitative details of stock of spares have not been given.
II. Balance of Sundry receivables and payables are subject to forma! confirmation. All sundry debtors are unsecured but considered good by the management to the extent of their book value.
III. Estimated amount of capital contracts remaining to be executed not provided for net of advances :- Rs. NIL (Last year NIL)
IV. Claims against the company not acknowledge as debts Nil.
V. Previous year''s figures have been re-grouped and re-arranged wherever considered necessary.
VI. Remuneration to Directors Rs. 12,00,000.00/- (Previous Year 4,86,000/-).
VII. Secured Loan
Stock, Receivables and Plant & Machineries are hypothecated to the bank as security for amount borrowed
VIII BORROWING COST:
Borrowing Cost attributable to the acquisition and construction of qualifying assets are capitalized. After borrowing costs are recognised as an expense in period in which they are incurred.
IX. Recognition of Deferred Tax Liabilities
The provision for current Income Tax is based on the taxable profit from April 1, 2012 to March 31, 2013. Deferred Income Tax reflects the impacts of current year timing differences between taxable income/ losses and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance sheet date. Deferred tax are recognized only to the extents that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In respect of carry forward looses, deferred tax assets are recognized only to the extent there is virtual certainty that sufficient future taxable income will be available against which such losses can be set off.
Pursuant to AS-22 issued by The Institute of Chartered Accountants of India, Deferred Tax Liability of Rs. 28,25,895.00 which arose during the year on account of timing difference between amount of depreciation as per books of accounts and depreciation as claimed under the provisions of Income Tax Rules, 1962; amounts to Rs.7,22,604.00 which has been recognized in the books of accounts.
3. RETIREMENT BENFITS
Company''s contribution to PF, ESI etc. are charged to Statement of Profit & Loss on accrual basis.
4. RETIREMENTS LEAVE ENCASHMENT
Provision for gratuity liability is made on the basis of premium actuarially assessed at the end of the period and intimated by the Life Insurance Corporation of India in terms of a policy taken with them.
Mar 31, 2010
I. INVENTORIES:
Stock Ãin-Trade has been taken, valued and certified by the management.
a) Inventories including Raw Materials and Stores spares & Equipment are valued at cost. Finished Goods is valued at lower of cost or net realizable value. Cost for this purpose includes purchase price and freight. Cost for the purpose of finished goods also includes cost of conversion. Scrap and waste is valued at net realisable value. The method of valuation of Stock is in accordance with Accounting Standard à 2. Inventories have been valued using the FIFO method.
b) As stated to us, there are numerous items in stock of stores & spares and, so, it is not possible to maintain the quantitative details of stores & spares. Hence, quantitative details of stock of spares have not been given.
II. Balance of Sundry receivables and payables are subject to formal confirmation. All sundry debtors are unsecured but considered good by the management to the extent of their book value.
III. Claims against the company not acknowledge as debts Nil.
IV. Previous years figures have been re-grouped and re-arranged wherever considered necessary.
V. Remuneration to Directors Rs. 4, 44,000/- (Previous Year 4, 44,000/-).
VI. Secured Loan Stock and receivables are hypothecated to the bank as security for amount borrowed
VII. Recognition of Deferred Tax Liabilities Deferred tax Liabilities, which arose during the year on account of timing difference between amount of depreciation as per books of accounts and depreciation as claimed under the provisions of Income Tax Rules, 1962 amounts to Rs. 46,42,987.00 which has been recognised in the books of accounts and accordingly Rs 3,14,302.00 has been adjusted in the Profit & Loss Account.
3. RETIREMENT BENFITS
Companys contribution to PF, ESI etc. are charged to Profit & Loss Account on accrual basis.
4. RETIREMENT & LEAVE ENCASHMENT
Provision for gratuity liability is made on the basis of premium actuarially assessed at the end of the period and intimated by the Life Insurance Corporation of India in terms of a policy taken with them.
6. TAXATION
Tax expense (tax savings) is the aggregate of current year tax and deferred tax charged (or credited) to the Profit & Loss Account of the year.
Current tax is the provision made for income tax liability on the profits for the year ended 31st March 2010 in accordance with the provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing difference being the difference resulting from the recognition items in financial statements and in estimating its current income tax provision.
Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date.
7. BORROWING COST
Borrowing Costs attributable to the acquisition and construction of qualifying assets are capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred.
8. SEGMENT REPORTING
(a) Business Segment : The Company has considered business segment as the primary segment for disclosure. The company is primarily engaged in the manufacture of mild steel wire rods, which in the context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is considered the only business Segment.
(b) Geographical Segment : The company sells its products within India. The conditions prevailing in India being uniform, no separate geographical segment disclosure is considered necessary.
10. RELATED PARTY DISCLOSURE
Information relating to Related Party Transaction as per Accounting Standard à 18 issued by the Institute of Chartered Accountants of India is given below :
A. NAME OF THE RELATED PARTY RELATIONSHIP
Sun Comtech Pvt. Ltd., Patna Associate Company
Patliputra Steels Private Limited Associate Company
Patliputra Gases Limited Associate Company
Mr. Sanjay Kumar Bhartiya Key Managerial Personnel
Mr. Prashant Bhartiya Key Managerial Personnel
Mrs. Nupur Bhartiya Key Managerial Personnel
Mrs. Ritu Bhartiya Key Managerial Personnel
11. Previous year figures have been regrouped and recast wherever necessary.
Stock Ãin-Trade has been taken, valued and certified by the management.
a) Inventories including Raw Materials and Stores spares & Equipment are valued at cost. Finished Goods is valued at lower of cost or net realizable value. Cost for this purpose includes purchase price and freight. Cost for the purpose of finished goods also includes cost of conversion. Scrap and waste is valued at net realisable value. The method of valuation of Stock is in accordance with Accounting Standard à 2. Inventories have been valued using the FIFO method.
b) As stated to us, there are numerous items in stock of stores & spares and, so, it is not possible to maintain the quantitative details of stores & spares. Hence, quantitative details of stock of spares have not been given.
II. Balance of Sundry receivables and payables are subject to formal confirmation. All sundry debtors are unsecured but considered good by the management to the extent of their book value.
III. Claims against the company not acknowledge as debts Nil.
IV. Previous years figures have been re-grouped and re-arranged wherever considered necessary.
V. Remuneration to Directors Rs. 4, 44,000/- (Previous Year 4, 44,000/-).
VI. Secured Loan Stock and receivables are hypothecated to the bank as security for amount borrowed
VII. Recognition of Deferred Tax Liabilities Deferred tax Liabilities, which arose during the year on account of timing difference between amount of depreciation as per books of accounts and depreciation as claimed under the provisions of Income Tax Rules, 1962 amounts to Rs. 46,42,987.00 which has been recognised in the books of accounts and accordingly Rs 3,14,302.00 has been adjusted in the Profit & Loss Account.
3. RETIREMENT BENFITS
Companys contribution to PF, ESI etc. are charged to Profit & Loss Account on accrual basis.
4. RETIREMENT & LEAVE ENCASHMENT
Provision for gratuity liability is made on the basis of premium actuarially assessed at the end of the period and intimated by the Life Insurance Corporation of India in terms of a policy taken with them.
6. TAXATION
Tax expense (tax savings) is the aggregate of current year tax and deferred tax charged (or credited) to the Profit & Loss Account of the year.
Current tax is the provision made for income tax liability on the profits for the year ended 31st March 2010 in accordance with the provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing difference being the difference resulting from the recognition items in financial statements and in estimating its current income tax provision.
Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date.
7. BORROWING COST
Borrowing Costs attributable to the acquisition and construction of qualifying assets are capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred.
8. SEGMENT REPORTING
(a) Business Segment : The Company has considered business segment as the primary segment for disclosure. The company is primarily engaged in the manufacture of mild steel wire rods, which in the context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is considered the only business Segment.
(b) Geographical Segment : The company sells its products within India. The conditions prevailing in India being uniform, no separate geographical segment disclosure is considered necessary.
10. RELATED PARTY DISCLOSURE
Information relating to Related Party Transaction as per Accounting Standard à 18 issued by the Institute of Chartered Accountants of India is given below :
A. NAME OF THE RELATED PARTY RELATIONSHIP
Sun Comtech Pvt. Ltd., Patna Associate Company
Patliputra Steels Private Limited Associate Company
Patliputra Gases Limited Associate Company
Mr. Sanjay Kumar Bhartiya Key Managerial Personnel
Mr. Prashant Bhartiya Key Managerial Personnel
Mrs. Nupur Bhartiya Key Managerial Personnel
Mrs. Ritu Bhartiya Key Managerial Personnel
11. Previous year figures have been regrouped and recast wherever necessary.
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