Gopal Iron & Steels Co (Gujarat) Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1 Corporate Information

Gopal Iron and Steels Co. (Gujarat) Limited (the company) is a public company domiciled in India and
incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock
Exchange in India. The company is engaged in the trading of SS/MS bars, MS Sections, ERW Pipes and
other iron and steel items. The company caters domestic market.

2 Basis of Preparation

2.1 Statement of Compliance

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (Ind
AS) notified under Section 133 of the Companies Act, 2013 (“the Act”), read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended from time to time, and other relevant provisions of the Act and guidelines issued
by the Securities and Exchange Board of India (SEBI), where applicable.

2.2 Basis of Preparation

The financial statements have been prepared on a historical cost basis, except for certain financial instruments, which
are measured at fair value at the end of each reporting period as explained in the accounting policies below.

The financial statements are presented in Indian Rupees (INR), which is the Company’s functional and presentation
currency. All amounts have been rounded off to the nearest rupee, unless otherwise stated.

2.3 Current and Non-current Classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle
and other criteria set out in Ind AS 1, Presentation of Financial Statements, and as per the Schedule III to the
Companies Act, 2013.

2.4 Operating Cycle

Based on the nature of products and the time between the acquisition of assets for processing and their realization in
cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of
classification of assets and liabilities into current and non-current.

2.5 Use of Estimates and Judgements

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying
disclosures. Although these estimates are based on the management’s best knowledge of current events and actions,
actual results may differ from those estimates. 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 in any
future periods affected.

2.6 Measurement Basis

These financial statements have been prepared using the following measurement bases:

• Historical cost for most assets and liabilities

• Fair value for certain financial assets and liabilities

• Net realizable value for inventory valuation

• Present value for employee benefit obligations

2.7 Recent pronouncements

The Company has evaluated all applicable amendments and new standards notified by the MCA and concludes that
there is no material impact on the financial statements for the year ended March 31, 2025.

I Note 3: Summary of Significant Accounting Policies

The accounting policies set out below have been applied consistently to all the periods presented in these financial
statements.

3.1 Property, Plant and Equipment (PPE)

PPE are carried at cost less accumulated depreciation and impairment losses. The cost of PPE includes all directly
attributable costs incurred to bring the asset to its present location and working condition. Depreciation is provided on
a straight-line basis over the useful lives specified under Schedule II of the Companies Act, 2013. Residual values and
useful lives are reviewed annually.

3.2 Intangible Assets

Intangible assets are measured at cost less accumulated amortization and impairment losses. Amortization is provided
on a straight-line basis over the estimated useful life, which is reassessed annually.

3.3 Leases (Ind AS 116)

The Company recognises a right-of-use (RoU) asset and a corresponding lease liability at the lease commencement
date, except for short-term leases and leases of low-value assets which are recognised on a straight-line basis as an
expense in profit or loss. The RoU asset is initially measured at cost and subsequently depreciated over the lease term.
The lease liability is initially measured at the present value of lease payments and is subsequently adjusted for interest
and lease payments.

3.4 Impairment of Non-Financial Assets

At each reporting date, the Company assesses whether there is any indication of impairment in any non-financial asset.
If such an indication exists, the recoverable amount is estimated, and the asset is written down to the extent its carrying
amount exceeds the recoverable amount.

3.5 Inventories

Inventories are valued at the lower of cost and net realizable value. Cost is determined on FIFO basis and includes all
costs incurred in bringing the inventories to their present location and condition.

3.6 Revenue Recognition (Ind AS 115)

Revenue is recognized upon transfer of control of goods to customers and when no significant performance obligation
remains. Revenue is measured at fair value of the consideration received or receivable, net of returns, discounts, and
taxes.

3.7 Financial Instruments

• Initial Recognition: Financial assets and liabilities are initially recognized at fair value.

• Subsequent Measurement:

o Financial assets are classified as measured at amortized cost, FVTPL, or FVOCI based on the business
model.

o Financial liabilities are generally measured at amortized cost.

• Derecognition:

Financial assets are derecognized when the rights to receive cash flows have expired or are transferred.
Financial liabilities are derecognized when extinguished.

3.8 Cash and Cash Equivalents

Cash and cash equivalents include balances with banks and short-term deposits with original maturity of three months
or less.

3.9 Employee Benefits

• Short-term benefits are recognized as expense when the related service is rendered.

• Defined contribution plans (e.g., Provident Fund) are recognized as expense when due.

• Defined benefit plans (e.g., Gratuity) are recognized based on actuarial valuation using the Projected Unit

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Mar 31, 2024

(A) Use of estimates

The preparation of financial statements in conformity with Indian 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, uncertainty 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.

(B) Tangible fixed assets

Fixed Assets are stated at cost of acquisition and installation, net of CENVAT, VAT and
GST less accumulated depreciation. Borrowing costs incurred during the period of
construction/acquisitions of assets are added to the cost of Fixed Assets. Major expenses
on modification / alterations increasing efficiency / capacity of the plant are also
capitalized.

Subsequent expenditure related to an item of fixed asset is added to its book value only
if it increases the future benefits from the existing asset beyond its previously assessed
standard of performance. All other expenses on existing fixed assets, including day-to¬
day repair and maintenance expenditure and cost of replacing parts, are charged to the
statement of profit and loss for the period during which such expenses are incurred.
Gains or losses arising from derecognition of fixed assets are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are
recognized in the statement of profit and loss when the asset is derecognized.

(C) Depreciation on Tangible Fixed Assets

Depreciation on tangible fixed assets has not been provided for the financial year.

(D) Borrowing Costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection
with the arrangement of borrowings and exchange differences arising from foreign
currency borrowings to the extent they are regarded as an adjustment to the interest
cost. Borrowing costs directly attributable to the acquisition, construction or production
of an asset that necessarily takes a substantial period of time to get ready for its intended
use or sale are capitalized as part of the cost of the respective asset. All other borrowing
costs are expensed in the period they occur.

(E) Impairment of Tangible Assets

The company assesses at each reporting datewhether there is an indication that an asset
may be impaired. If any indication exists, or when annual impairment testing for an asset
is required, the company estimates the asset''s recoverable amount. An impairment loss
is recognised in the accounts to the extent the carrying amount exceeds, the recoverable
amount.

(F) Income taxes

Current tax is determined as the amount of tax payable in respect of taxable income for
the year.

Deferred tax if recognized, on difference between taxable income and accounting income
that originate in one period and are capable of reversal in one or more subsequent
periods. Where there is an unabsorbed depreciation or carry forward loss, deferred tax
assets are recognised only to the extent there is reasonable certainty of realization in
future. Such assets are reviewed at each balance sheet date to reassess realization.

(G) Investments

Investments, which are readily realizable and intended to be held for not more than one
year from the date on which such investments are made, are classified as current
investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase
price and directly attributable acquisition charges such as brokerage, fees andduties.
Current investments are carried in the financial statements at lower of cost and fair
value determined on an individual investment basis. Long-term investments are carried
at cost. However, provision for diminution in value is made to recognize a decline other
than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net
disposal proceeds is charged or credited to the statement of profit and loss.

(H) Inventories

Raw materials and stores and spares are valued at lower of cost and net realizable value.
However, materials and other items held for use in the production of inventories are not
written down below cost if the stores and spares are determined on FIFO basis.
Work-in-progress and finished goods are valued at lower of cost and net realizable value.
Cost includes direct materials and labour and a proportion of manufacturing overheads
based on normal operating capacity. Cost of finished goods includes excise duty and is
determined on First-in-First-out basis.

Waste is valued at net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and estimated costs necessary to make the sale.

(I) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will
flow to the company and the revenue can be reliably measured. The following specific
recognition criteria must also be met before revenue is recognized

Sale of goods

Revenue from sale of goods is recognized when all the significant risks and rewards of
ownership of the goods have been passed to the buyer, usually on delivery of the goods.

Interest

Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the applicable interest rate. Interest income is included under the head
“other income” in the statement of profit and loss.

(J) Government grants and subsidies

Grants and subsidies from the government are recognized when there is reasonable
assurance that the company will comply with the conditions attached to them, and the
grant / subsidy will be received.

When the grant or subsidy relates to revenue, it is recognized as income on a systematic
basis in the statement of profit and loss over the periods necessary to match them with
the related costs, which they are intended to compensate. Such grants are deducted in
reporting the related expense. Where the grant relates to an asset, it is recognized as
deferred income and released to income in equal amounts over the expected useful life
of the related asset.

Government grants of the nature of promoters'' contribution are credited to capital
reserve

and treated as a part of the shareholders’ funds.

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Mar 31, 2014

(A) Use of estimates

The preparation of financial statements in conformity with Indian 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, uncertainty 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.

(B) Tangible fixed assets

Fixed Assets are stated at cost of acquisition and installation, net of cenvat, Vat less accumulated Depreciation. Borrowing costs incurred during the period of construction/Acquisitions of assets are added to the cost of Fixed Assets. Major expenses on modification/alterations increasing efficiency/capacity of the plant are also capitalized.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to- day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred. Gains or losses arising from derecognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

(C) Depreciation on Tangible Fixed Assets

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the Schedule XIV to the Companies Act, 1956, whichever is higher.

(D) Borrowing Costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

(E) Impairment of Tangible Assets

The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset''s recoverable amount. An impairment loss is recognised in the accounts to the extent the carrying amount exceeds, the recoverable amount.

(F) Government grants and subsidies

Grants and subsidies from the government are recognized when there is reasonable assurance that the company will comply with the conditions attached to them, and the grant/subsidy will be received.

When the grant or subsidy relates to revenue, it is recognized as income on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Such grants are deducted in reporting the related expense. Where the grant relates to an asset, it is recognized as deferred income and released to income in equal amounts over the expected useful life of the related asset.

Government grants of the nature of promoters'' contribution are credited to capital reserve and treated as a part of the shareholders'' funds.

(G) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost.

However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

(H) Inventories

Raw materials and stores and spares are valued at lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the stores and spares are determined on FIFO basis.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty and is determined on First-in-First-out basis.

Waste is valued at net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

(I) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized

Sale of goods

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

(J) Provisions

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Where the company expects 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 any provision is presented in the statement of profit and loss net of any reimbursement.

(K) Employee benefits

Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, short term compensated absences, etc, and the expected cost of bonus, ex-gratia is recognized in the period in which the employee renders the related service.

Post-Employment Benefits

(i) Defined Contribution Plans

The contribution paid/payable under the scheme is recognized during the period in which the employees render the related services.

(ii) Defined Benefit Plan

The employee''s gratuity fund scheme is company''s defined benefit plan. The present value of the obligation under such defined benefit plan is determined on estimate basis.

(L) Income taxes

Current tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred tax is recognized on difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is an unabsorbed depreciation or carry forward loss, deferred tax assets are recognised only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each balance sheet date to reassess realization.

(M) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding during the period.

(N) Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

(O) Measurement of EBITDA

As permitted by the Guidance note on the Revised Schedule VI to The Companies Act, 1956, the company has to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. In its measurement, the company does not include depreciation and amortization expense, finance cost and tax expense.

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Mar 31, 2012

(1) Basis of Preparation of Financial Statements

(a) The Financial Statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared theses Financial Statement to comply in all material aspects with the notified Accounting Standards by Companies

(Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

(b) The Company follows mercantile system of accounting, unless stated otherwise.

(c) The Accounts are prepared on the historical basis and on the Accounting Principles of on Going Concern.

(d) Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted Accounting Principles. In applying Accounting Policies, consideration has been given to Prudence, Substance over form and Materiality.

(e) Expenses and Income considered payable and receivable respectively are generally accounted for on Accrual Basis.

(2) Change in Accounting Policy

Presentation and Disclosure of the Financial Statements during the year ended on 31st March, 2012 the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company, for preparation and presentation of its Financial Statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of Financial Statements. However it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(3) Use of Estimates

The preparation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognizes in the period in which the results are known / materialized.

The cost of Semi-Finished and Finished Goods includes the Cost of Material, Labor and manufacturing overheads.

(5) Fixed Assets, Method of Depreciation, Amortization and Impairment

(a) The Gross Block of Assets is shown at the Cost, which includes taxes, duties and other identifiable, direct expenses which are attributable to acquisition of fixed assets and other direct expenses and overheads incurred up to date on which such assets were first put to use less accumulated depreciation and impairment loss..

(b) Expenditure incurred during Construction / Erection period is included under Capital Work-in-Progress and allocated to the respective Fixed Assets on Completion of Construction / Erection.

(c) Depreciation has been provided in the books on straight-line method basis at the rate and the method as specified under schedule XIV to the Companies Act, 1956.

Lease hold Land is for 99 years and therefore Lease provision is not amortized. Moreover yearly rent paid for the Lease Hold land is expensed in the Profit & Loss Statement.

(d) The company evaluates impairment of losses on the Fixed Assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If such assets are considered to be impaired, the impairment loss is then recognized for the amount by which the carrying amount of the assets exceeds recoverable amount, which is the higher of an assets net selling price and value in use.

(6) Employee Benefits

(a) Defined Contribution Plan

Contribution to the Provident Fund, Pension Fund, Other Funds and Leave encashment paid during the year are being charged to Profit & Loss Account.

(b) Liability towards Gratuity is paid to fund maintained by the LIC of India and administered through a separate trust set up by the Company. Difference between the fund balance and the accrued liability determined based on the actuarial valuation as per the Projected Limit Credit Method by LIC of India is charged to Profit & Loss Account during the year. Any Shortfall arising in future between the Gratuity amounts received from LIC of India and an employee actual Gratuity payable to being undetermined shall be accounted in the year of actual payment of Gratuity.

(7) Investments

Long Term Investments are stated at Cost. Provision for diminution in the value of Long Term Investments is made only if such a decline is other than temporary in the opinion of the Management.

(8) Accounting for Taxes on Income

(a) Income Tax expenses comprises of Current Tax, Deferred Tax Charge or Credit. Provision for Current Tax is made with reference to Taxable Income Computed for the Accounting period, for which the Financial Statements are prepared and applying the tax rates as applicable.

(b) Deferred tax results from Timing Difference between Book Profit and Taxable Profit is accounted for using tax rates and laws that have been '' enacted / or substantial annexed as on the Balance Sheet date.

(c) MAT Credit is recognized as an asset only when there is convincing evidence that the Company will pay normal Income Tax within the specified period. The asset shall be reviewed at each Balance Sheet Date.

(9) Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as result of past events and it is probable that there will be an outflow of resources.

Contingent Liabilities are not recognized but are disclosed in the notes.

Contingent Assets are neither recognized nor disclosed in the Financial statements.

(10) Revenue Recognition

(a) Revenue recognized when it is earned and no significant uncertainty exists as to its realization or collection and is recorded on gross value including CENVAT and VAT.

(b) Revenue from Job work income is recognized on delivery of the products, when all significant contractual obligations have been satisfied.

(c) Other income is accounted on accrual basis.

(11) Earnings per Share

The company reports Basic and Diluted Earnings per Share (EPS) in accordance with Accounting Standards - 20 on Earnings per Share.

Basic Earnings per share are calculated, by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted Earnings per share reflect the potential dilution that could occur if contracts to issue equity shares were exercised or converted during the period. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period, except where the results are anti-dilutive.

(12) Government Grant Treatment

Government grants of Capital Nature are credited to Capital reserve and treated as a part of shareholder''s fund.

(13) Segment Information

The company is primarily engaged in a single segment business of manufacturing , of Iron and Steel items.

(14) Leases

Land subject to operating leases is included under Fixed Assets. Rent (Lease) payment is recognized in the profit & loss account on a payment basis over the lease term.

(15) CENVAT Treatment

(a) Revenue from operations and Cost of Materials Consumed are inclusive of Excise Duty Levied. The excise duty paid net of CENVAT claimed is accounted separately.

(b) Unutilized balance of CENVAT claimable at the yearend has been accounted and disclosed separately under the head "Short Term Loans and Advances" and the CENVAT component at the yearend inventoried been adjusted accordingly

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Mar 31, 2010

1.1 Basis of Preparation of Financial Statements

a) The Financial Statement have been prepared to comply in all material aspects with the notified Accounting Standards by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

b) The Company follows mercantile system of accounting, unless stated otherwise.

Use of Estimates

The preparation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognises in the period in which the results are known / materialized.

1.2 Fixed Assets

The Gross Block of Assets is shown at the Cost, which includes taxes, duties and ether identifiable, direct expenses which are attributable to acquisition of fixed assets and other direct expenses and overheads incurred up to date on which such assets were first put to use.

Expenditure incurred during Construction / Erection period is included under Capital Work-in-Progress and allocated to the respective Fixed Assets on Completion of ¦ Construction / Erection.

1.3 Impairment of Assets

The company evaluates impairment of losses on the Fixed Assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If such assets are considered to be impaired, the impairment loss is then recognised for the amount by which the carrying amount of the assets exceeds recoverable amount, which is the higher of an assets net selling price and value in use.

1.4 Depreciation

Depreciation has been provided in the books on straight-line method basis at the rate and the method as specified under schedule XIV to the Companies Act, 1956.

Lease hold Land is for 99 years and therefore Lease provision is not amortized. Moreover yearly rent paid for the Lease Hold land is expensed in the Profif & Loss Statement.

1.5 Government Grant Treatment

Government grants of Capital Nature are credited to Capital reserve and treated as a part of shareholders fund.

1.6 Segment Information

The company is primarily engaged in a single segment business of manufacturing of Iron and Steel items.

1.7 Revenue Recognition

a) Sales are recognized on completion of sale of goods and are recorded on gross value including CENVAT and VAT.

b) Other income is accounted on accrual basis.

1.8 Segment Information

The company is primarily engaged in a single segment bustnes of manufacturing of Iron and Steel items.

1.9 Retirement Benefit and Gratuity

Contribution to the Provident Fund, Pension Fund, Other Funds and Leave encashment paid during the year are being charges to Profit & Loss Account.

Liability towards Gratuity is paid to fund maintained by the LIC of India and administered through a separate trust set up by the Company. Difference between the fund balance and the accrued liability determined based on the actuarial valuation as per the Projected Limit Credit Method by LIC of India is charged to Profit & Loss Account during the year. Any Shortfall arising in future between the Gratuity amounts received from LIC of India and an employee actual Gratuity payable to being undetermined shall be accounted in the year of actual payment of Gratuity.

1.10Valuation of Stock

a) Raw materials are valued at lower of cost or net realizable value.

b) Stores and spares are valued at cost.

c) Finished goods are valued at cost or net realizable value whichever is lower,

d) Scraps are valued at net realizable value.

1.11 Provision for Current and Deferred Tax

Provision for Current Tax is made on the basis of estimated laxacle income for the year after taking into consideration all benefits admissible under the provisions of the Income Tax Act. 1961 including MAT Credit.

Deferred tax results from Timing Difference between Book Profit and Taxable Profit is accounted for using tax rates and laws that have been enacted / or substantial annexed as on the balance sheet date (Rs. In Lac):

The Deferred Tax Assets for the year Rs. 5.92 Lac (Liability Rs. 1 20 Lac) is charged to profit and loss account.

1.12 investments

Long Term Investments are stated at Cost. Provision for diminution in the value of Long Term Investments is made only if such a decline is other than temporary in the opinion o, the Management.

1.13 Excise Duty Treatment

(a) Gross Turnover / Purchases are inclusive of Excise Duty Levied. The excise duty paid net of CENVAT claimed is accounted separately and reduced from Gross Turnover

(b) Unutilized balance of CENVAT Claimable at the year end has been accounted and disclosed separately under "Other Current Assets" and the CENVAT component at the year end inventories has been adjusted accordingly.

1.14 Leases

Land subject to operating leases is included under Fixed Assets. Rem (Lease) payment is recognized in the profit & loss account on a payment basis over the lease term.

1.15 Earnings Per Share

The company reports Basic and Diluted Earnings per Share (EPS) in accordance with Accounting Standards - 20 on Earnings per Share.

Basic Earnings per share are calculated, by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted Earnings per share.reftect the potential dilution that could occur if contracts to issue equity shares were exercised or converted during the period. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period, except where the results are anti-dilutive.

1.16 All contingent liabilities are aisclosed byway of notes to the accounts.