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Hasti Metals Financial Supplement Report

This supplementary report from Hasti Metals Private Limited provides clarification on several points regarding the company's financial projections. It explains that excise duty collected from customers is deposited with the government after claiming input tax credit, and is debited to the profit and loss account, not impacting reported profits. It also classifies current assets like advances, prepaid expenses, and other short term prepayments. Finally, it addresses taxation, creditors, ability to pass on price increases of raw materials to sales prices, and locational advantages of the project site.

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Manohar Waghela
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77 views3 pages

Hasti Metals Financial Supplement Report

This supplementary report from Hasti Metals Private Limited provides clarification on several points regarding the company's financial projections. It explains that excise duty collected from customers is deposited with the government after claiming input tax credit, and is debited to the profit and loss account, not impacting reported profits. It also classifies current assets like advances, prepaid expenses, and other short term prepayments. Finally, it addresses taxation, creditors, ability to pass on price increases of raw materials to sales prices, and locational advantages of the project site.

Uploaded by

Manohar Waghela
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

M/s Hasti Metals Private Limited - Supplementary Report: With reference to the above the revised financials with

all the necessary changes are enclosed herewith. The clarifications required in the project are given below: i) Excise Duty ccounting:

Excise duty on sales is collected fro! custo!ers. The duty so collected is deposited in the "overn!ent Treasury after ta#ing $%D& T credit on purchase of raw !aterial. The !ount thus paid is debited to profit and loss account. 't !ay thus be noted that even if (Excise Duty) is included in the projections* the sa!e will not i!pact on the reported profit. We have prepared the financial data on (+ET , -'-) !ethod. accounting. ii) .lassification of .urrent ssets: s stated earlier* the net profit will re!ain sa!e whether we apply "ross ,asis of Duty accounting or +et ,asis of Duty

This consists of nor!al short ter! co!!ercial advances* prepaid expenses* other current pre/paid 0li#e advance salary) pay!ents.

1ear -hort Ter! +or!al .o!!ercial dvances :repaid Expenses %ther .urrent :re/paid Total

2007-08

2008-09

2009-10

2010-11

2011-12

2012-1

201 -1!

2.34

2.56

2.74

8.58

8.54

8.96

8.38

5.66 8.62 3.65

5.56 8.22 9.62

7.22 9.62 85.94

7.22 3.22 89.58

7.22 3.56 89.65

7.22 3.62 89.76

7.22 3.72 83.58

Hasti Metals

iii) ;ocational dvantage of -antej: i)) Easy availability of ;abour* ii) vailability of adequate water iii) ;ocated in an industrial ,elt* in vicinity to -hah lloys ;td. iv) vailability of ;:" gas line h) vailability of <oad=Transportation iv) Taxation :

Taxes on 'nco!e arising during the year are paid in the sa!e year. The sa!e can be verified fro! (-ources > Disposition of ?unds) -tate!ent 0 nnexure @ '&). v) .reditors on raw !aterial purchases:

<aw !aterial for .o!!ercial grade of copper and brass products would be ta#en fro! unorganiAed !ar#et. 't !ay be noted that* the !ar#et conditions are such that only cash pay!ents are entertained in this business. 'n case of %E grade copper* the raw !aterials would either be ta#en fro! sa!e unorganiAed !ar#et or fro! well reputed co!panies. 'n either case* there would be no credit available on raw !aterial purchases. vi) bility to pass over price increase : / s the raw !aterial price increases

This industry highly price sensitive. vary !uch. 1ours faithfully

correspondingly sales price is also increases. -o the contribution does not

Consultants

Hasti Metals

ssociate .onsultant .onsultants

Consultants

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