Golkonda Engineering Enterprises Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2015

I) Basis of Preparation of financial statements:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises of mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(ii) Use Of Estimates:-:-

The presentation of financial statements in conformity with the generally accepted accounting principal requires estimates and assumptions to be made. That affects the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

(iii) Fixed Assets:-

Fixed Assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties (net of tax credits as applicable) levies and any directly attributable cost of bringing the assets to their working condition for their Intended use.

(iv) Depreciation & Amortisation

Depreciation on fixed assets is provided to the extent of depreciable amount on the written down value (WDV). Depreciation is provided based on useful life of the assets as prescribed in schedule II ofthe Companies Act, 201B

(v) Investments:-

Long term investments are stated at cost. Provision for diminution in value of Long term investment is made only if such decline is other than temporary in the opinion of management. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

(vi) Inventories:-

Stocks of Raw Materials and Work in Progress are valued at Cost & Finished goods are valued at lesser of Cost and Net Realisable Value.

(vii) Provision

A provision is recognized when an enterprise has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provision are determined based on management estimate require to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

(viii) Treatment Of Contingent Liabilities:

Contingent liabilities are disclosed by way of notes. Provision is made in the accounts for those liabilities which are likely to materialize after the year end till the finalization of accounts and having effect on the position stated in the balance sheet as at the year end.

(ix) Foreign Exchange Transaction:-

Transactions entered into and concluded during the year in foreign currency are recorded at the actual exchange rates prevailing at the time of conclusion of transactions. In respect of transaction covered by forward exchange contracts, the difference between the forward rate and the exchange rate on the date of transaction is recognized as income or expenses over the life of the contracts. Outstanding assets and liabilities at the year end are converted into Indian rupees as per FEDAI rate of exchange prevalent on the said date. Exchange rate Difference arising out of subsequent settlements is dealt in the Profit & Loss Accounts.

(x) Taxation

Provision for taxation has been made in accordance with the rates of Income Tax Act, 1961 prevailing for the relevant assessment year.

(xi) Deferred Taxation

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

(xii) Sales:-

Sales are recognized, net of returns and trade discounts, on dispatch of goods to Customers and are reflected in the accounts at gross realizable value.

(xiii) Excise Duty:-

As per "Guidance note on treatment of excise duty1'' issued by ICAI, company follows exclusive method of accounting for excise. Initially Excise payable on sales is credited to Excise on sales Account and at the month-end it is transferred to Excise payable Account. Similarly, Excise paid on purchases is, initially, debited to Excise on purchases Account and at the month-end it is transferred to Excise Receivable Account.

In respect of purchase of Capital Goods, initially, Excise on Capital Goods Account is debited and at the month-end 50% is transferred to Excise Receivable Account and balance 50% is transferred to Excise Receivable on Capital Goods Account. The accumulated balance in Excise Receivable on Capital Goods Account at the year-end is utilized to set-off excise liability of the immediately following year.

As and when the credit available in Excise Receivable Account is utilized, this account is credited and corresponding debit is given to Excise Payable Account.

The company deposits, from time to time, an amount as required by the excise authorities in Central Excise PLA which is utilized to set-off excise liability.

At the year end, balances in Excise Receivable Account, Excise Receivable on Capital Goods Account and Central Excise PLA are shown under "Loans and Advances" in the Balance Sheet.

(xiv) Employee Retirement Benefits:-

Employee Benefits in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the profit and loss account of the year when the contributions to the provident fund are made. There are no obligations other than the contribution payable to the government administered provident fund.

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Mar 31, 2014

(i) Basis of Preparation of financial statements:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises of mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(ii) Use Of Estimates:-

The presentation of financial statements in conformity with the generally accepted accounting principal requires estimates and assumptions to be made. That affects the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized

(iii) Fixed Assets:-

Fixed Assets are stated at cost less accumulated depreciation Cost is inclusive of freight, duties (net of tax credits as applicable) levies and any directly attributable cost of bringing the assets to their working condition for their Intended use.

(iv) Depreciation & Amortisation:-

Depreciation is provided as per the written down value method at the rate prescribed by Companies Act, 1956. Fixed assets are capitalized at cost inclusive of expenses and interest wherever applicable.

(v) Investments:-

Long term investments are stated at cost. Provision for diminution in value of Long term investment is made only if such decline is other than temporary in the opinion of management.

(vi) Inventories:-

Stocks of Raw Materials & Finished goods are valued at lesser of Cost and Net Realisable Value. Accordingly Inventories are valued at cost.

(vii) Provision:-

A provision is recognized when an enterprise has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provision are determined based on management estimate require to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

(viii) Treatment Of Contingent Liabilities:-

Contingent liabilities are disclosed by way of note on the balance sheet. Provision is made in the accounts for those liabilities which are likely to Materialize after the year end till the finalization of accounts and having effect on the position stated in the balance sheet as at the year end.

(ix) Taxation:-

Provision for taxation has been made in accordance with the rates of Income Tax Act, 1961 prevailing for the relevant assessment year.

(x) Deferred Taxation:-

Deferred Tax resulting from timing differences between book and tax profit is accounted for under the liability method, at the current rate of tax, to the extent that the timing difference are expected to crystallize as deferred tax charge/benefit in the Profit & Loss Accounts and deferred tax assets/liabilities in the balance sheet.

(xi) Sales:-

Sales are recognized, net of returns and trade discounts, on dispatch of goods to Customers and are reflected in the accounts at gross realizable value i.e. Inclusive of excise duty & Forwarding Charges.

(xii)Excise Duty:-

Excise Duties wherever recovered are included in sales and shown separately in financial statements. Excise duty provision made in respect of finished goods lying at factory premises is shown separately as an item of manufacturing and other expenses and included in the valuation of finished goods.

(xiii) Employee Retirement Benefits:-

Company''s contributions to provident fund and subscription to Employees group gratuity scheme of life Insurance Corporation of India is charged to Profit and Loss Account and further, leave salary and bonus are charged to profit and loss account on cash basis.

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Mar 31, 2013

(i) Basis of Praeparation of finaceal Statemats

These financial Principles (GAAP) under the cost Convention on the Accrual basis except for certain finaceal insstuments wthich are measured at fair Values GAAP Company of standras ules 2006 the provision of the Company Act.1956 Accouint adopted or are vision to an exisiting accouing accounting standard requires in the accounting policy hitherto in use.

(ii) USE of Estimates:-

the Presetaion of finaceal statement with the generally accepted accounting Princial restime and assumption to be made that affects thje reported amount of assets and liabilites on the date of the madediffeerence between the actual and estimates and are recognize in which the resuits are known/materialized

(iii) Fixed Assets:-

Fixed Assets are stated t cost less accumuted Cost is inclusile of freight dutes (net of the crding application ) levies and any directy cost bringing the asset to their condition for their inteded use.

(iv) Deprecition & Amortason:-

Deprecition is Provided as Per as the wrtten down method at the rate prescribed by Company Act 1956 Fixed assest to ther working condition for their Inteended use wthervere Applicable.

(v) investment

Long teram investment are stated at cost provision for dimintion in value of long term investment is made only if decline is other in the opinion of management.

(vi) Inventories:-

Stock of Raw Maerials & Finished goods are valued at lesser of cost and Net Realisable Valus. Accoringly Invetory are a cost.

(vii)Frovfsion:-

A provision is recognized when an enterprise has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provision are determined based on management estimate require to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

(viii) Treatment Of Contingent Liabilities:-

Contingent liabilities are disclosed by way of note on the balance sheet. Provision is made in the accounts for those liabilities which are likely to Materialize after the year end till the finalization of accounts and having effect on the position stated in the balance sheet as at the year end.

(ix) Taxation:-

Provision for taxation has been made in accordance with the rates of Income Tax Act, 1961 prevailing for the relevant assessment year.

(x) Deferred Taxation:-

Deferred Tax resulting from timing differences between book and tax profit is accounted for under the liability method, at the current rate of tax, to the extent that the timing difference are expected to crystallize as deferred tax charge/benefit in the Profit & Loss Accounts and deferred tax assets/liabilities in the balance sheet

(xi) Sales:-

Sales are recognized, net of returns and trade discounts, on dispatch of goods to Customers and are reflected in the accounts at gross realizable value i.e. Inclusive of excise duty & Forwarding Charges.

(xii)Excise Dutv:-

Excise Duties wherever recovered are included in sales and shown separately in financial statements Excise duty provision made in respect of finished goods lying at factory premises is shown separately as an item of manufacturing and other expenses and included in the valuation of finished goods.

(xiii) Employee Retirement Benefits:-

Company''s contributions to provident fund and subscription to Employees group gratuity scheme of life Insurance Corporation of India is charged to Profit and Loss Account and further, leave salary and bonus are charged to profit and loss account on cash basis.