| Note 1 : In the opinion of Board of Directors, Non current / current
assets and Loans and Advances have value on realization in the ordinary
course of business, at least equal to the amount at which they are
stated in the Balance sheet and that the provision for known
liabilities is adequate and reasonable. There are no contingent
liabilities other than stated herein above.
Note 2 : LEASES - WHERE COMPANY IS LESSEE
The Company has taken various premises under operating leases with no
restrictions and is renewable / cancelable at the option of either
party. There are no sub leases. There are no restrictions imposed by
lease arrangements. The company has not recognized any contingent rent
as expense in the statement of profit and loss. The aggregate amount of
operating lease payment recognized in the statement of profit and loss
is Rs.1.69 Lacs (Previous year 1.14 Lacs )
Note 3 : Disclosure as per AS-15 - EMPLOYEE BENEFITS GRATUITY
The Company has opted for scheme with Life Insurance Corporation of
India to cover its liabilities towards employees' gratuity. The annual
premium paid to Life Insurance Corporation of India is charged to
Profit and Loss Account. The Company also carries out actuarial
valuation of gratuity using Projected Unit Credit Method as required by
Accounting Standard 15 "Employee Benefits" (Revised 2005) and
difference between fair value of plan assets and liability as per
actuarial valuation as at year end is recognized in Profit and Loss
Account.
Note 4 : Exceptional item Nil (Previous year Rs. 4.30 Lacs) represent
value of Gratuity fund of earlier year not recognized, being excess of
fair value of planned assets over present value of defined obligation,
, hence now recognized.
Note 5 : Pursuant to enactment of new Companies Act, 2013 and as per
the schedule II of the Companies Act, 2013, the company has revised the
useful life of fixed Assets for providing depreciation on it.
Accordingly; carrying amount as on 01/04/2014 has been depreciated over
the remaining revised useful life of fixed Assets. Due to this change
depreciation for the year is lower by Rs.0.05 Lacs and profit before
tax is higher to the extent of Rs. 0.05 Lacs. In accordance with
transitional provision in respect of assets whose useful life is
already exhausted as on 01/04/2014, depreciation Rs. 0.19 Lacs . (Net
of tax expenses Rs. 0.09 Lacs) has been recognized in opening balance
of retained earnings as per requirement of schedule II of the Act.
Note 6 : Previous year's figures are regrouped / re - arranged
wherever considered necessary.
Note 7 : General Company Information Significant Accounting policies
and practices adopted by the Company are disclosed as under :- General
company information Ruchi Strips and Alloys Limited was incorporated as
a Limited Company on June 18th, 1987.
In the year 2011, Company has transferred its Plant along with Steel
Division situated at Village - Sejwaya, Ghatabillod, Dist. Dhar (M.P.)
to wholly owned subsidiary RSAL Steel Private Limited. Now, the main
business activity of the company is Trading activity in Steel and other
products.
The shares of the Company are listed at the Bombay Stock Exchange,
Mumbai.
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