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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