Professional Documents
Culture Documents
List of Transactions
List of Transactions
period April & May 2020 based on the below listed transactions
As the 2nd generation joined the business in 2017, they realized that competing
just on price advantage has limited the scope and growth of their business. They
realized that the customers procuring the coil/sheet from CSSPL were getting
them processed further to their specification at job work units. If they started
providing this value addition to their customers, they can expand the scope of
their business and also onboard new customers.
Hence, Tanay and Rishi pitched the idea of starting a subsidiary company to their
fathers. The subsidiary would have inhouse one de-coiling cum slitting and a
shearing machine to process the steel as per the size requirements of their
customers. Backed with an existing supplier and customer base, and more than 4
decades experience of the parent company, the subsidiary company TR Steel
Private Limited (TRSPL) was incorporated in April 2020.
April 2, 2020: Purchased De-coiling cum slitting machine from Durga Machines,
Delhi for Rs. 42 Lakhs. A Shearing machine was purchased for Rs. 15 Lakhs
from ANR Works, Hyderabad. Based on the parent company relationship from
ICIC Bank, the machinery was financed at 40% credit by the bank at 11% pa with
monthly interest payments and quarterly principal payments for 3 years. The
balance had been paid by CSSPL in January 2020 while placing the order and
had to be paid back to the parent company by end of the financial year. The
machinery would be depreciated over its useful life of 12 years with salvage value
of Rs. 4.8 Lakhs for De-coiling cum slitting machine and Rs. 90,000 for shearing
machine.
April 3, 2020: Office furniture and equipment setup of Rs. 1.5 lakhs were paid
to Page Office Solutions. The useful life of these assets is presumed to be 3 years
with no salvage value.
April 4, 2020: The accountant and stock manager were transferred from CSSPL
to the books of TRSPL at a monthly salary of Rs. 20,000 each. TRSPL also hired
2 foremen for operation of both machines at Rs. 15,000 per month. A shed
manager with a monthly salary of Rs. 20,000 per month. Watchman’s salary is
set at Rs. 8,000 per month. 4 other people were hired for the manual labour on
the site at Rs. 8,000 per month. They were hired with effect from 1st April, 2020,
and their salaries were paid at the end of each month.
April 6, 2020: Received an order from CSSPL for a de-coiling and slitting job
work on behalf of its customer Madurai Poles for 25 Tonne CR Material to be cut
from coils to sheet. The job work was done for Rs. 1000 per tonne. The same was
sold by the parent company to Madurai Poles for Rs. 41000 per tonne. The
payment would be done by CSSPL in 30 days.
April 7, 2020: For future orders, pre-empting demand from existing clients of
CSSPL, TRSPL purchased 95 tonnes CR from JS Steel at Rs. 41,000 per tonne.
Another 45 tonnes HRPO coils were ordered from Tat Steel at Rs. 35,000 per
tonne. These were ordered against upfront payment done through RTGS. The
material would reach the factory in 5 days.
April 8, 2020: Registered for an e-auction service for JS Steel with a security
deposit of Rs. 10 lakhs.
April 9, 2020: Satisfied with the previous order service, received direct order
from Madurai Poles for 20 Tonnes CR cut to their size. The selling price was
agreed at Rs. 51,000 ex-TRPL factory. The payment would be done in 30 days.
April 13, 2020: Purchased 40 tonnes HR from JS Steel e-auction at Rs.33,000 per
tonne, excluding transaportation. The payment needs to be made within 7
working days else security would be forfeited.
April 17, 2020: Order received from walk-in customer Modern Barrels for 12
tonnes HRPO at Rs. 39000 per tonne against full payment (including packaging
charges) made in advance. 10% of the payment was made in cash and the
remaining through a bank transfer. The order to be processed within 3 days.
April 18, 2020: While processing the above order, 25 tonnes HRPO lot from Tat
Steel was found rusted. Rishi spoke to the Tat Steel plant immediately and upon
further enquiry they agreed to take back the 25 tonnes damaged material.
However, they would only be able to process the refund as a credit note.
April 20, 2020: Payment for transaction dated April 13 to JS Steel for 40 tonnes
HR at Rs.33,000 per tonne is made. Order dated April 17,2020 for Modern
Barrels has been dispatched.
April 22,2020: Payment made vide RTGS to ANB Transportation for 95 tonnes
CR and 45 tonnes HRPO at Rs.900 per tonne
April 30, 2020: April salaries credited to the employees and directors accounts.
The four employees for manual labour were paid in cash. Other petty expenses
of Rs. 5780 were settled in cash. Electricity bill of Rs. 22,500 was paid through
cheque.
April 30, 2020: Loan Interest payment made to ICIC Bank for the month of April
2020
May 2, 2020: Rent for the month of May debited for Factory shed
May 11, 2020: Tanay, director, took a 6 month interest free loan from TRSPL of
Rs. 5 Lakhs to repay a personal liability
May 16, 2020: A Fire & Burglary Insurance policy covering fixed and current
assets including the factory shed, offering a sum assured of Rs 75 Lakhs was
taken against a premium of Rs 36,000 per annum
May 18, 2020: Balance payment, including packaging charges, for 10 tonnes CR
supplied to Madurai Poles received in account
May 28, 2020: Cash amounting to Rs 1,00,000 was withdrawn from bank.
May 30, 2020: May salaries credited to the employees and directors accounts.
The four employees for manual labour were paid in cash. Other petty expenses
of Rs. 4260 were settled in cash. Electricity bill of Rs. 28,500 was paid through
cheque.
May 31, 2020: Loan Interest payment made to ICIC Bank for the month of May
2020