26. SIGNIFICANT ACCOUNTING POLICIES
Company Overview
Rhetan TMT Limited ("the company") is a listed company domiciled in India and incorporated under the provisions of the Companies Act, 2013. The company is engaged in the business of Manufacturing of TMT Bars. The company is listed on BSE Limited (SME Platform).
1. BASIS OF PREPARATION :
These financial statements have been prepared in accordance with accounting principles Generally Accepted in India (Indian GAAP) the accounting standard notified under the relevant provisions of the Companies Act,2013. The Financial Statements are prepared on accrual basis under the historical cost convention, except for certain Fixed Assets which are carried at revalued amounts and other claims /refunds, which due to uncertainty in realization are accounted for on actual receipt basis.
2. USE OF ESTIMATES :
The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, Differences between actual results and estimates are recognized in the period in which the results are known/materialized.
3. FIXED ASSETS :
Fixed assets are stated at its revalued amount or at cost of acquisition or construction less depreciation. Cost comprises purchase price and other attribute costs/expenses related thereto.
4. DEPRECIATION :
Depreciation on assets has been provided on Straight Line Method on the basis of useful life Specified in Part C of Schedule II of the Companies Act 2013. Depreciation for assets purchased / sold during the year is charged proportionately.
5. INVENTORIES :
The inventories as at year end have been taken, valued & certified by the Directors of the company. As informed by the Management, the valuation of the inventories has been made at Cost (FIFO Method).
6. REVENUE RECOGNITION :
Revenue on sale of products is recognized when the products are dispatched to customers. Sales are stated net of trade discount and sales return.
7. EXPENDITURE :
Expenses are accounted for on accrual basis and the provision is made for all known losses and liabilities.
8. TAX ON INCOME :
Income tax expenses comprise current tax and deferred tax charge or credit.
• Current Tax
The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.
• Deferred tax
Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
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