Accounting Policies of Rishabh Digha Steel & Allied Products Ltd. Company

Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES

1) Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with Indian Accounting Standard ( Ind AS) notified under the Companies( Indian Accounting Standards) Rules 2015 and as prescribed under section 133 of the Companies Act ,2013. The Accounting policies are consistent form one period to another. The Company has followed The Income Computation and Disclosure Standard as notified by the Central Board of Direct Taxes.

2) Use of Estimates

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

3) Fixed Assets

a. ) Tangible Fixed Assets:

Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

b. ) Intangible Assets:

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

4) Depreciation

Depreciation on fixed assets is provided to the extent of depreciable amount on Straight Line method (SLM) at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013. The useful life has been reworked so as to arrive at the revised rates of depreciation for due compliance of the new provisions of depreciation.

In respect to assets sold / discarded / scrapped during the year depreciation is calculated on a pro -rata basis considering the number of days for which the Fixed Assets is used during the current financial year. Thereafter the sales proceeds is reduced from the cost of the assets to determine the gain or loss on a particular fixed asset.

Depreciation on idle assets is charged until the assets are fully depreciated or the assets are classified as Non-Current Assets Held for Sale.

5. Non-Current Assets held for sale and discontinued operations.

The assets are classified as held for sale or discontinued operations only when the management intends to sell it in a distant future. For the sale to be highly probable

i. The appropriate level of management must be committed to a plan to sell the assets, to locate the buyer and the said plan must have been initiated.

ii. The assets must be actively marketed for sale at a price that is reasonable in relation to its current fair value.

iii. The sale should be expected to qualify for recognition as a completed sale within one year from the date of classification.

6. Investments

Investments are valued and presented as per Ind AS 109 read with Ind AS 113. The profit or loss determined as per Ind AS has been considered as Other Comprehensive Income and has been reflected in the Profit and Loss account and the same have been also reflected in the Balance Sheet by creating a reserve in Other Equity.

7. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection and the same is in accordance with the Income Computation and Disclosure Standards (ICDS -IV) and Ind AS 115 as below._

Disclosure Requirements	Remarks
In a transaction involving sales of goods, total amount not recognized as revenue during previous year due to lack of reasonably certainty of its ultimate collection along with nature of uncertainty.	NA.
The amount of revenue from service transactions recognized as revenue during the previous year.	NIL
The method used to determine stage of completion of service transaction in progress.	Not applicable-Company recognizes revenue from service contracts with duration of less than 90 days when the rendering of services under than contract is completed.
For service transaction in progress at the end of the previous year. a) Amount of cost incurred and recognized profit less recognized losses up to end of the previous year. b) Amount of advances received.3) Amount of retentions	Not Applicable.

8. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account.

9. 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 difference" 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. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

10. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a 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. The above disclosures if any are made in accordance with Income Computation and Disclosure Standards and Ind AS.

11. Event Occurring after the date of Balance Sheet

There is no important events occurred after the date of the balance sheet which has a material effect on the profitability or the position of the company. The said impact on inventories, valuation of financial instruments, recognition of revenue, provision, contingent liabilities & Assets, going concern assessment, borrowing cost, Provision of taxes, lease accounting have been duly assessed and wherever required has been disclosed appropriately.

12. Going Concern

The financial statement has been prepared assuming that the concern will continue as going concern.

13. Earnings Per Share.

Earnings per share is calculated on distributable profits to equity shareholders after providing for the preference share dividend and any other any item of income or expense which is otherwise required to be recognized in profit or loss in accordance with Indian Accounting Standards is debited or credited to securities premium account/other reserves, if any. This is in accordance with the Ind AS

33.

14. Preliminary Expenses & Pre-operative expenses.

Preliminary expenses are capitalized and is written off over a period of 5 years from the date company commences its business activities as per section 35D of the Income Tax Act 1961. Other expenses which are not termed as preliminary expenses are capitalized to the relevant fixed assets as this are the expenses which are incurred to bring the assets in operating conditions.

15. Employee Benefits

The statutory obligations of the company such as EPF, Gratuity, ESIC have been duly recognized on accrual basis and has been charged to Profit & Loss Account.

16. General

a) In the opinion of the Board of Directors, the value on realization of current Assets, Loans and Advances and Receivables if realized in the ordinary course of business, shall not be less than the amount at which they are stated in the Balance Sheet and Receivables and Loans and Advances including Capital Advances are considered goods and recoverable on an ongoing basis.

b) The balances of Sundry Creditors, Deposits Given, Loans and Advances and Receivables are subject to confirmation.

c) Figures have been regrouped and rearranged wherever found necessary.

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Mar 31, 2015

1) Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention with the generally accepted accounting principles in India including the Accounting Standards issued by The Institute of Chartered Accountants and the provisions of the Companies Act, 2013. The Accounting policies are consistent form one period to another.

2) Use of Estimates

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

3) Own Fixed Assets

Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

4) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

5) Depreciation

Depreciation on fixed assets is provided to the extent of depreciable amount on Written Down Value method (WDV) at the rates and in the manner prescribed in Schedule XII to the Companies Act, 2013. The useful life has been reworked so as to arrive at the revised rates of depreciation for due compliance of the new provisions of depreciation.

6) Investments

Current investments are carried at lower of cost and quoted/fair value, computed category wise. 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.

7) Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.

8) Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account.

9) 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 difference" 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. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

10) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a 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.

11) Event Occurring after the date of Balance Sheet

There is no important events occurred after the date of the balance sheet which has a material effect on the profitability or the position of the company.

12) Going Concern

The financial statement has been prepared assuming that the concern will continue as going concern.

13) Earnings Per Share.

Earnings per share is calculated on distributable profits to equity share holders after providing for the preference share dividend if any this is in accordance with the AS-20.

14) Preliminary Expenses & Pre-operative expenses.

Preliminary expenses are capitalized and is written off over a period of 5 years from the date company commences its business activities as per section 35D of the Income Tax Act 1961. Other expenses which are not termed as preliminary expenses are capitalized to the relevant fixed assets as this are the expenses which are incurred to bring the assets in operating conditions.

15) General

a) In the opinion of the Board of Directors, the value on realization of current Assets, Loans and Advances and Receivables if realized in the ordinary course of business, shall not be less than the amount at which they are stated in the Balance Sheet and Receivables and Loans and Advances including Capital Advances are considered goods and recoverable on an ongoing basis.

b) The balances of Sundry Creditors, Deposits Given, Loans and Advances and Receivables are subject to confirmation.

c) Figures have been regrouped and rearranged wherever found necessary.

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Mar 31, 2014

1) Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

2) Use of Estimates

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

3) Own Fixed Assets

Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

4) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

5) Depreciation

Depreciation on fixed assets is provided to the extent of depreciable amount on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

6) Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

(b) 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 and the premium paid on forward contracts is recognized over the life of the contract.

(c) Non monetary foreign currency items are carried at cost.

(d) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

7) Investments

Current investments are carried at lower of cost and quoted/fair value, computed category wise. 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.

8) Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any.

9) Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.

10) Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account.

11) 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 difference" 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. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

12) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a 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.

13) Event Occurring after the date of Balance Sheet

There is no important events occurred after the date of the balance sheet which has a material effect on the profitability or the position of the company.

14) Going Concern

The financial statement has been prepared assuming that the company will continue as going concern.

15) Earning Per Share

Earning per share is calculated on distributable profits to equity share holders after providing for the preference share dividend if any this is in accordance with the AS-20.

16) Preliminary Expenses & Pre-operative expenses

Preliminary expenses are capitalized and is written off over a period of 5 years from the date company commences its business activities as per section 35D of the Income Tax Act 1961. Other expenses which are not termed as preliminary expenses are capitalized to the relevant fixed assets as this are the expenses which are incurred to bring the assets in operating conditions.

17) Figures have been regrouped and rearranged wherever found necessary.

18) Figures in brackets represent figures of previous year.

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Mar 31, 2012

1) Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

2) Use of Estimates

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

3) Own Fixed Assets

Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

4) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

5) Depreciation

Depreciation on fixed assets is provided to the extent of depreciable amount on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

6) Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

(b) 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 and the premium paid on forward contracts is recognized over the life of the contract.

(c) Non monetary foreign currency items are carried at cost.

(e) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

7) Investments

Current investments are carried at lower of cost and quoted/fair value, computed category wise. 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.

8) Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any.

9) Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.

10) Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account.

11) 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 difference" 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. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

12) Provisions. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a 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.

13) Event Occurring after the date of Balance Sheet

There is no important events occurred after the date of the balance sheet which has a material effect on the profitability or the position of the company.

14) Going Concern

The financial statement have been prepared assuming that the company will continue as going concern.

15) Earning Per Share

Earning per share is calculated on distributable profits to equity share holders after providing for the preference share dividend if any this is in accordance with the AS-20.

16) Preliminariy Expenses & Pre-operative expenses

Preliminary expenses are capitalized and is written off over a period of 5 years from the date company commences its business activities as per section 35D of the Income Tax Act 1961. Other expenses which are not termed as preliminary expenses are capitalized to the relevant fixed assets as this are the expenses which are incurred to bring the assets in operating conditions.

17) Figures have been regrouped and rearranged wherever found necessary.

18) Figures in brackets represent figures of previous year.

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Mar 31, 2010

A) Basis of preparation of financial statements

The financial statements are prepared on an accrual basis of accounting and in accordance with the generally accepted principles in India, provisions of the Companies Act, 1956 an comply in material aspects with the accounting standards notified under Section 211 (3C) of the Act, read with Companies (Accounting Standards) Rules, 2006.

b) Fixed Assets

Fixed Assets are valued at cost of acquisition inclusive of freight, duties, taxes, cost of financing during construction period and expenses related to acquisition, installation, Erection and commissioning.

c) Depreciation

Depreciation is provided on straight line basis at the rates specified in Schedule XIV to the Companies Act, 1956 from the date on which the assets is put to use.

d) Valuation of Inventory

The finished goods are valued at lower of the cost or market value. The stores and spares are valued at cost.

e) Preliminary Expenses

Preliminary Expenses are amortized as per section 35D of the Income Tax Act, 1961.

f) Employee Retirement Benefits

Provision for payment of Gratuity to employees is not made. The same is accounted in the year in which it is paid.

g) Revenue Recognition

Revenue on the job work is recognized on the basis of completion of work.

h) Investment

Investments are valued at cost. Any temporary dilution has not been provided for as they are meant for long term.

i) General Accounts are prepared on the Historical Cost Concept method and as per the Accounting standards and in accordance with the normally accepted Accounting Principles. The company adopts the Accrual concept in the preparation of the accounts.

j) Retirement Benefits

Contributions to defined contribution schemes such as gratuity are charged to Profit and Loss account as incurred. The Company also provides for retirement benefits in the form of gratuity and leave encashment.

k) Accounting for Taxes on Income

Provision for current tax is made after taking into consideration of benefits admissible under the provisions of Income Tax Act, 1961. Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted as on the balance sheet date. The deferred tax liability is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.