Gujarat Wedge Wire Screens Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2014

1.1 Framework of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention on the accrual basis of accounting in accordance with the generally accepted accounting principles, Accounting Standards issued by the Institute of Chartered Accountants of India notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of Companies Act, 1956.

2.2 Uses of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosure relating to contingent assets and liabilities on the date of financial statements and the results of operations during the reporting periods. Although these estimates are based upon management''s knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.

2.3 Fixed Assets:

Fixed Assets are stated at original cost, net of tax/duty credits availed, if any, less accumulated depreciation and includes adjustment arising from exchange rate variation attributable to fixed cost

Cost comprises the purchase price, any attributable cost of bringing the assets or any administrative or specifically attributable general overheads relating to construction or acquisition of fixed assets or bringing the fixed assets to working condition which are allocated and capitalized as a part of the cost of the fixed assets.

There is no revaluation of fixed assets carried out during the year.

2.4 Depreciation and Amortisation:

Depreciation of fixed assets have been provided on straight-line method in the manner and at the rates prescribed in schedule XIV of the Companies Act, 1956 except in case of Dies and Moulds which are depreciated @ 20% on straight-line basis considering shorter life of the assets. Depreciation on additions / deletions to fixed assets during the year is provided on pro-rata basis.

2.5 Investments:

Investments are classified into current and long term investment.

Current investments are carried at lower of cost or market value, computed category wise and the resultant decline, if any, is charged to revenue.

Long term investments are stated at cost. Provision is made for any diminution in value, if other than temporary.

2.6 Inventories:

Inventories are valued at lower of cost and net realisable value. Cost includes material, labour, and proportion of manufacturing overheads. The cost of inventories is determined based on the First in First out method. Expenditure on stores and spares is charged to revenue account in the year of purchase.

2.7 Sales:

Sales are accounted inclusive of Excise duty but excluding VAT and are net of returns/ discounts/ debit notes/ reversals.

Revenue from sales of product is recognised on the transfer of substantial risk and rewards of ownership.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

2.8 Retirement Benefits

Defined Contribution Plans: Company''s contribution paid/payable during the year to Provident Fund and Employee State Insurance Fund are recognised in the Profit and Loss Account.

Provision is made for leave encashment. The amount or such liabilities is estimated by management on the basis of relevant factors including remuneration of employees etc. Regarding gratuity liability the company has created fund with LIC of India and premium for such liability has been deposited with LIC of India.

2.9 Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the date of transaction. Monetary items denominated in foreign currency at the year end are translated at year end rates.

In respect of monetary items which are covered by foreign exchange contracts, the premium or discounts on such forward contract is recognized over the life of the forward contract.

The exchange differences arising on settlement of transaction/ translation of monetary assets and liabilities denominated in foreign currency are recognised in the Profit & Loss Account. In cases, where they relate to acquisition of fixed assets, they are adjusted to the carrying cost of such assets.

2.10 Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period based on applicable tax rate and laws.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal 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. Deferred Tax Asset is recognized when there is virtual certainty of reversal.

2.11 Segment Reporting

The company is engaged in business of Wedge Wire Screens, which as per Accounting Standard -17, is considered the only reportable business segment.

2.12 Earning Per Share:

Basic Earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of snares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2.13 Accounting policies not specifically referred to are consistent with the generally accepted accounting standards.

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Mar 31, 2013

1.1 Framework of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention on the accrual basis of accounting in accordance with the generally accepted accounting principles, Accounting Standards issued by the Institute of Chartered Accountants of India notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of Companies Act, 1956.

1.2 Uses of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosure relating to contingent assets and liabilities on the date of financial statements and the results of operations during the reporting periods. Although these estimates are based upon management''s knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognized in the current and future periods.

1.3 Fixed Assets:

Fixed Assets are stated at original cost, net of tax/duty credits availed, if any, less accumulated depreciation and includes adjustment arising from exchange rate variation attributable to fixed cost Cost comprises the purchase price, arty attributable cost of bringing the assets or any administrative or specifically attributable general overheads relating to construction or acquisition of fixed assets or bringing the fixed assets to working condition which are allocated and capitalized as a part of the cost of the fixed assets.

There is no revaluation of fixed assets carried out during the year.

1.4 Depreciation and Amortization:

Depreciation of fixed assets have been provided on straight-line method in the manner and at the rates prescribed in schedule XIV of the Companies Act, 1956 except in case of Dies and Moulds which are depreciated @ 20% on straight-line basis considering shorter life of the assets. Depreciation on additions / deletions to fixed assets during the year is provided on pro-rata basis.

1.5 Investments:

Investments are classified into current and long term investment.

Current investments are carried at lower of cost or market value, computed category wise and the resultant decline, if any, is charged to revenue.

Long term investments are stated at cost. Provision is made for any diminution in value, if other than temporary.

1.6 Inventories:

Inventories are valued at lower of cost and net realizable value. Cost includes material, labor, and proportion of manufacturing overheads. The cost of inventories is determined based on the First in First out method. Expenditure on stores and spares is charged to revenue account in the year of purchase.

1.7 Sales:

Sales are accounted inclusive of Excise duty but excluding VAT and are net of returns/ discounts/ debit notes/ reversals.

Revenue from sales of product is recognized on the transfer of substantial risk and rewards of ownership.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

1.8 Retirement Benefits

Defined Contribution Plans: Company''s contribution paid/payable during the year to Provident Fund and Employee State Insurance Fund are recognized in the Profit and Loss Account.

Provision is made for leave encashment. The amount or such liabilities is estimated by management on the basis of relevant factors including remuneration of employees etc.

Regarding gratuity liability the company has created fund with LIC of India and premium for such liability has been deposited with LIC of India.

1.9 Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the date of transaction. Monetary items denominated in foreign currency at the yearend are translated at year end rates.

In respect of monetary items which are covered by foreign exchange contracts, the premium or discounts on such forward contract is recognized over the life of the forward contract.

The exchange differences arising on settlement of transaction/ translation of monetary assets and liabilities denominated in foreign currency are recognized in the Profit & Loss Account. In cases, where they relate to acquisition of fixed assets, they are adjusted to the carrying cost of such assets.

1.10 Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period based on applicable tax rate and laws.

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 are capable of reversal 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. Deferred Tax Asset is recognized when there is virtual certainty of reversal.

1.11 Segment Reporting

The company is engaged in business of Wedge Wire Screens, which as per Accounting Standard - 17, is considered the only reportable business segment.

1.12 Earnings Per Share:

Basic Earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.13 Accounting policies not specifically referred to are consistent with the generally accepted accounting standards.

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Mar 31, 2012

1.1 Framework of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention on the accrual basis of accounting in accordance with the generally accepted accounting principles, Accounting Standards issued by the Institute of Chartered Accountants of India notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of Companies Act, 1956.

1.2 Uses of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosure relating to contingent assets and liabilities on the date of financial statements and the results of operations during the reporting periods. Although these estimates are based upon management's knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.

1.3 Fixed Assets:

Fixed Assets are stated at original cost, net of tax/duty credits availed, if any, less accumulated depreciation and includes adjustment arising from exchange rate variation attributable to fixed cost

Cost comprises the purchase price, any attributable cost of bringing the assets or any administrative or specifically attributable general overheads relating to construction or acquisition of fixed assets or bringing the fixed assets to working condition which are allocated and capitalized as a part of the cost of the fixed assets.

There is no revaluation of fixed assets carried out during the year.

1.4 Depreciation and Amortisation:

Depreciation of fixed assets have been provided on straight-line method in the manner and at the rates prescribed in schedule XIV of the Companies Act, 1956 except in case of Dies and Moulds which are depreciated @ 20% on straight-line basis considering shorter life of the assets. Depreciation on additions / deletions to fixed assets during the year is provided on pro-rata basis.

1.5 Investments:

Investments are classified into current and long term investment.

Current investments are carried at lower of cost or market value, computed category wise and the resultant decline, if any, is charged to revenue.

Long term investments are stated at cost. Provision is made for any diminution in value, if other than temporary.

1.6 Inventories:

Inventories are valued at lower of cost and net realisable value. Cost includes material, labour, and proportion of manufacturing overheads. The cost of inventories is determined based on the First in First out method. Expenditure on stores and spares is charged to revenue account in the year of purchase.

1.7 Sales:

Sales are accounted inclusive of Excise duty but excluding Sales Tax, and are net of returns/ discounts/ debit notes/ reversals.

Revenue from sales of product is recognised on the transfer of substantial risk and rewards of ownership.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

1.8 Retirement Benefits

Defined Contribution Plans: Company's contribution paid/payable during the year to Provident Fund and Employee State Insurance Fund are recognised in the Profit and Loss Account.

Provision is made for leave encashment. The amount or such liabilities is estimated by management on the basis of relevant factors including remuneration of employees etc. Regarding gratuity liability the company has created fund with LIC of India and premium for such liability has been deposited with LIC of India.

1.9 Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the date of transaction. Monetary items denominated in foreign currency at the year end are translated at year end rates.

In respect of monetary items which are covered by foreign exchange contracts, the premium or discounts on such forward contract is recognized over the life of the forward contract.

The exchange differences arising on settlement of transaction/ translation of monetary assets and liabilities denominated in foreign currency are recognised in the Profit & Loss Account. In cases, where they relate to acquisition of fixed assets, they are adjusted to the carrying cost of such assets.

1.10 Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period based on applicable tax rate and laws.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal 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. Deferred Tax Asset is recognized when there is virtual certainty of reversal.

1.11 Segment Reporting

The company is engaged in business of Wedge Wire Screens, which as per Accounting Standard - AS 17, is considered the only reportable business segment.

1.12 Earning Per Share:

Basic Earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.13 Accounting policies not specifically referred to are consistent with the generally accepted accounting standards.

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Mar 31, 2010

1) Framework of Preparation of Financial Statements:

a) The financial statements have been prepared under the historical cost convention on the accrual basis of accounting in accordance with the generally accepted accounting principles, Accounting Standards issued by the Institute of Chartered Accountants of India notified u/s 21 K3C) of the Companies Act, 1956 and the relevant provisions of Companies Act, 1956.

2) Uses of estimates:

a) The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosure relating to contingent assets and liabilities on the date of financial statements and the results of operations during the reporting periods. Although these estimates are based upon managements knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.

3) Fixed Assets

a) Fixed Assets are stated at original cost, net of tax/duty credits availed, if any, less accumulated depreciation and includes adjustment arising from exchange rate variation attributable to fixed cost.

b) Cost comprises the purchase price, any attributable cost of bringing the assets or any administrative or specifically attributable general overheads relating to construction or acquisition of fixed assets or bringing the fixed assets to working condition which are allocated and capitalized as a part of the cost of the fixed assets.

c) There is no revaluation of fixed assets carried out during the year.

4) Depreciation

a) Depreciation of fixed assets have been provided on straight-line method in the manner and at the rates prescribed in schedule XIV of the Companies Act, 1956 except in case of Dies and Moulds which are depreciated 20% on straight-line basis considering shorter life of the assets. Depreciation on additions / deletions to fixed assets during the year is provided on pro-rata basis.

5) Investments

a) Investments are classified into current and long term investment.

b) Current investments are carried at lower of cost or market value, computed category wise and the resultant decline, if any, is charged to revenue.

c) Long term investments are stated at cost. Provision is made for any diminution in value, if other than temporary.

6) Inventories

a) Raw Materials valued at cost or net realized value, which ever is lower.

b) Work in progress valued at cost or net realized value, which ever is lower.

c) Finished goods are valued at cost or realisable value, whichever is lower. Cost includes material, labour, and proportion of manufacturing overheads.

d) Expenditure on stores and spares is charged to revenue account in the year of purchase.

7) Sales:

a) Sales are accounted inclusive of Excise duty but excluding Sales Tax, and are net of returns/ discounts/ debit notes/ reversals.

b) Revenue from sales of product is recognised on the transfer of substantial risk and rewards of ownership.

c) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

8) Retirement Benefits

a) Defined Contribution Plans: Companys contribution paid/payable during the year to Provident Fund and Employee State Insurance Fund are recognised in the Profit and Loss Account.

b) Provision is made for leave encashment. The amount or such liabilities is estimated by management on the basis of relevant factors including remuneration of employees etc.

c) Regarding gratuity liability the company has created fund with LIC of India and premium for such liability has been deposited with LIC of India.

9) Foreign Currency Transactions

a) Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the date of transaction. Monetary items denominated in foreign currency at the year end are translated at year end rates.

b) In respect of monetary items which are covered by foreign exchange contracts, the premium or discounts on such forward contract is recognized over the life of the forward contract.

c) The exchange differences arising on settlement of transaction/ translation of monetary assets and liabilities denominated in foreign currency are recognised in the Profit & Loss Account. In cases, where they relate to acquisition of fixed assets, they are adjusted to the carrying cost of such assets.

10) Taxation

a) Current tax is determined as the amount of tax payable in respect of taxable income for the period based on applicable tax rate and laws.

b) Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal 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. Deferred Tax Asset is recognized when there is virtual certainty of reversal.

11) Segment Reporting

a) The company is engaged in business of Wedge Wire Screens, which as per Accounting Standard - AS 17, is considered the only reportable business segment.

12) Earning Per Share:

a) Basic Earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares).

b). For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.