1. Fixed Assets
i) Fixed Assets are stated at cost less depreciation at prescribed
rates, Cost comprise the purchase price and any attributable and proportionable cost of those expenses which
are incurred for bringing
the asset to working condition for its intended use.
2. Capital Work-in-Progress
The Capital work-in-progress represents expenditure incurred on
foundation of Finishing Stands pertaining to Rolling Mills Division,
Jamshedpur and is shown at cost.
i) Depreciation has been provided on Straight Line Method at the rates
and in the manner specified in Schedule XIV of the Companies Act, 1956.
ii) Depreciation on addition to Fixed Assets during the period is
calculated on pro-rata basis from the date of the addition.
iii) No amortisation is provided in accounts in respect of Leasehold
Investments are carried at cost.
Inventories of Stores and spares and Raw Materials are valued at cost.
Inventory of Finished Goods are valued at estimated realisable value.
6. Recognition of Income & Expenditure
Items of Income & Expenditure are recognised on accrual basis.
Grants/Subsidies are generally accounted for on the basis of sanction
letter issued by the related authorities.
As in previous years, gratuity has been charged on payment basis, and
accordingly, no provision has been made in these accounts for the
year-end accrued liability (amount unascertained).
9. Deferred Revenue Expenses
Financial Expenses for acquiring the assets on lease rent/hire purchase
are written off over the period during which the lease rent/hire
purchase price are paid.