Gwalior Polypipes Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2014

1.1 Basis of accounting and preparation of financial statements

The financial statements of Gwalior PolyPipes Limited have been prepared to comply in respects with the Notified accounting standards by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the companies act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company, are consistent with those usedinthe previous year.

2.2. Use of estimates

The preparation of financial statements are in conformity with generally accepted accounting principles which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year reported. Examples of such estimates are useful lives of fixed assets, percentage of completion on uncompleted contracts, income taxes, post-sales customer support and provisons for doubtful debts. Actual Results could differ from those estimates. Difference between the actual result and estimates are recognised in the period in which the results are known/ materialised.

2.3 -Fixed assets and depreciation

Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Depreciation on fixed assets is provided on the Written Down Value Method from the date of capitalization at rates specified in Schedule XIV to the Companies Act, 1956 except for assets mentioned below which are depreciated at higher rates based on useful life of the asset. Assets individually costing Rs. 5,000 or less are fully depreciated in the year of purchase.

2.4 Investments

Long Term

securities intended to be held for a period exceeding one year are classified as long-term investments and are carried at cost. Adjustments are made for any diminution in values that is, other than temporary.

Investments are unquoted and are stated at cost. Present value of such investments has not been assessed. In the opinion of the management, the diminution in the value of investments, if any, is considered as temporary, at this stage and hence no provision for diminution, if any, in the value has been made.

2.5 Leases

Where the Company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account overthe lease term.

2.6 Inventories

Stocks are stated at the lower of cost or net realisable value. Cost of Traded goods is determined on FIFO basis.

"Raw Material - at cost or Net realisable Value, whichever is lower(Cost is calculated on weighted average method)" "Work-In- Progress- at cost or Net realisable Value, whichever is lower(Cost includes the cost of all inputs incurred till date.)"

"Finished Goods - at cost or Net realisable Value, whichever is lower(Cost includes the cost of all inputs including raw material, direct expenses and manufacturing overheads.)"

Net realisable value is estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale.

2.7 Revenue Recognition

Revenue is recognised to the extent that it is possible that the economic benefits will flow to the company and the revenue can be measured.

(i) Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally consider with the delivery of goods to customers. Sales excludes excise duty.

(ii) The interest is accounted on accrual basis.

(iii) Revenue for services on completion of the services to be provided when no significant uncertainity exists regarding the amount of consideration that will be derived from rendering the service.

2.8 Retirement benefits

"Retirement Benefits in respect of gratuity on retirement/cessation are provided based on estimation as at Balance Sheet date, made by the management for employees having completed one year''s service.The Company has not got the acturial valuation of its gratuity liability done. However, in the opinion of the management, the liability provided in the financial statement is sufficiant to meet out the gratuity liability."

Retirement 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 respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

2.9 Income Taxes

Tax expenses comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with Income Tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax resulting from timing differences between the book profit and the tax profits is accounted for, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognised only to the extent there is reasonable certainity that the assets can be realised in the future; however where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainity of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date.

2.10 Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividend and attributable taxes) by the weighted average number of equity shares outstanding during the year

2.11 Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; 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 not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

2.12 Impairment

Management periodically assesses using external and internal sources whether there is an indication that an assets may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset''s net sale price or present value as determined above.

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Mar 31, 2013

1.1 Basis of accounting and preparation of financial statements

The financial statements of Gwalior PolyPipes Limited have been prepared to comply in respects with the Notified accounting standards by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the companies act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company, are consistent with those used in the previous year.

1.2. Use of estimates

The preparation of financial statements are in conformity with generally accepted accounting principles which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year reported. Examples of such estimates are useful lives of fixed assets, percentage of completion on uncompleted contracts, income taxes, post-sales customer support and provisions for doubtful debts. Actual Results could differ from those estimates. Difference between the actual result and estimates are recognised in the period in which the results are known/materialised.

1.3 Fixed assets and depreciation

Fixed assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Depreciation on fixed assets is provided on the Written Down Value Method from the date of capitalization at rates specified in Schedule XIV to the Companies Act, 1956 except for assets mentioned below which are depreciated at higher rates based on useful life of the asset. Assets individually costing Rs. 5,000 or less are fully depreciated in the year of purchase.

1.4 Investments

Long Term

securities intended to be held for a period exceeding one year are classified as long-term investments and are carried at cost. Adjustments are made for any diminution in values that is, other than temporary.

Investments are unquoted and are stated at cost. Present value of such investments has not been assessed. In the opinion of the management, the diminution in the value of investments, if any, is considered as temporary, at this stage and hence no provision for diminution, if any, in the value has been made.

1.5 Leases

Where the Company is the lessee

Leases where the lesser effectively retains substantially all the risks and benefits of ownership of the leased item are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account over the lease term.

1.6 Inventories

Stocks are stated at the lower of cost or net realisable value. Cost of Traded goods is determined on Fl FO basis.

"Raw Material - at cost or Net realisable Value, whichever is lower(Cost is calculated on weighted average method)"

"Work-In- Progress- at cost or Net realisable Value, whichever is lower(Cost includes the cost of all inputs incurred till date.)"

"Finished Goods - at cost or Net realisable Value, whichever is lower(Cost includes the cost of all inputs including raw material, direct expenses and manufacturing overheads.)"

Net realisable value is estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale.

1.7 Revenue Recognition

Revenue is recognised to the extent that it is possible that the economic benefits will flow to the company and the revenue can be measured.

(i) Sales are recognised, net of returns and trade discounts, on transfer of significant risks and

rewards of ownership to the buyer, which generally consider with the delivery of goods to customers. Sales excludes excise duty.

(ii) The interest is accounted on accrual basis.

(iii) Revenue for services on completion of the services to be provided when no significant uncertainty exists regarding the amount of consideration that will be derived from rendering the service.

1.8 Retirement benefits

"Retirement Benefits in respect of gratuity on retirement/cessation are provided based on estimation as at Balance Sheet date, made by the management for employees having completed one year''s service. The Company has not got the actuarial valuation of its gratuity liability done. However, in the opinion of the management, the liability provided in the financial statement is sufficient to meet out the gratuity liability."

Retirement 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 respective funds are due. There are no other obligations other than the contribution payable to the respective trusts

1.9 Income Taxes

Tax expenses comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with Income Tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax resulting from timing differences between the book profit and the tax profits is accounted for, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in the future; however where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date.

1.10 Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividend and attributable taxes) by the weighted average number of equity shares outstanding during the year

1.11 Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; 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 not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

1.12 Impairment

Management periodically assesses using external and internal sources whether there is an indication that an assets may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset''s net sale price or present value as determined above.

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Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

The financial statements of Gwalior PolyPipes Limited have been prepared to comply in respects with the Notified accounting standards by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company, -are consistent with those used in the previous year.

1.2. Use of estimates

The preparation of financial statements are in conformity with generally accepted accounting principles which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year reported. Examples of such estimates are useful lives of fixed assets, percentage of completion on uncompleted contracts, income taxes, post-sales customer support and provisions for doubtful debts. Actual Results could differ from those estimates. Difference between the actual result and estimates are recognised in the period in which the results are known/materialised.

1.3 Fixed assets and depreciation

Fixed assets are stated at cost, less accumulated depreciation and impairment losses if any, Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Depreciation on fixed assets is provided on the Written Down Value Method from the date of capitalization at rates specified in Schedule XIV to the Companies Act, 1956 except for assets mentioned below which are depreciated at higher rates based on useful life of the asset. Assets individually costing Rs. 5,000 or less are fully depreciated in the year of purchase.

1.4 Investments

Long Term

securities intended to be held for a period exceeding one year are classified as long-term investments and are carried at cost. Adjustments are made for any diminution in values that is, other than temporary.

Investments are unquoted and are stated at cost. Present value of such investments has not been assessed. In the opinion of the management, the diminution in the value of investments, if any, is considered as temporary, at this stage and hence no provision for diminution, if any, in the value has been made.

1.5 Leases

Where the Company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of '"ownership of the leased item are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account over the lease term.

1.6 Inventories

Stocks are stated at the lower of cost or net realisable value. Cost of Traded goods is determined on FIFO basis.

Net realisable value is estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale.

1.7 Revenue Recognition

Revenue is recognised to the extent that it is possible that the economic benefits will flow to the company and the revenue can be measured.

(i) Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally consider with the delivery of goods to customers. Sales excludes excise duty.

(ii). The interest is accounted on accrual basis.

(iii) Revenue for services on completion of the services to be provided when no significant uncertainity exists regarding the amount of consideration that will be derived from rendering the service.

1.8 Retirement benefits

Retirement Benefits in respect of gratuity on retirement/cessation are provided based on estimation as at Balance Sheet date, made by the management for employees having completed one year's service.

PF & ESI is also applicable on the Company.

1.9 Income Taxes

Tax expenses comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with Income Tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax resulting from timing differences between the book profit and the tax profits is accounted for, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognised only to the extent there is reasonable certainity that the assets can be realised in the future; however where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainity of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date.

1.10 Earnings Per Share

basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividend and attributable taxes) by the weighted average number of equity shares outstanding during the year.

1.11 Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; 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 not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

1.12 Impairment

Management periodically assesses using external and internal sources whether there "is an indication that an assets may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset's net sale price or present value as determined above.

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Mar 31, 2010

(a) Basis of preparation of financial statements

The financial statements of Gwalior Polypipes Limited have been prepared on a historical cost convention on the accrual basis and is in compliance with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (IC Al) and other relevant provisions of the Companies Act, 1956(theAct).

The accounting policies applied by the Company are consistent with those used in the previous period 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.

(b) Use of estimates

The preparation of financial statements is in conformity with Generally Accepted Accounting Principles which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period reported. Examples of such estimates are useful lives of fixed assets, percentage of completion on uncompleted contracts, income taxes, post-sales customer support and provisions for doubtful debts. Actual results could differ from those estimates. Difference between the actual result and estimates are recognized in the period in which the results are known /materialized.

(c) Revenue recognition

Sales comprises sale of goods and adjusted for excise duty and sale tax.

(d) Fixed assets

Fixed assets are stated at cost less accumulated depreciation. Cost includes all direct expenses incurred to bring an asset to working condition for its intended use. Cost also includes financing costs relating to specific borrowing(s) attributable to the acquisition or construction of fixed assets.

(e) Depreciation

Depreciation is provided using the written down value method based on the rates prescribed in Schedule XIV of the Companies Act, 1956, which approximates the useful lives of the assets as estimated by management. Depreciation is charged on a pro-rata basis for assets purchased / sold during the period. Individual assets costing Rs 5,000 or less are depreciated in full in the year of purchase.

(f) Investments Longterm

Securities intended to be held for a period exceeding one year are classified as long-term investments and are carried at cost. Adjustments are made for any diminution in values that is, other than temporary.

(g) Employee benefit plans

Provident Fund

Provident fund is a defined contribution plan. Eligible employees and the Company make equal periodic contributions as a percentage of the basic salary specified under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The Company has no further obligations under the plan beyond its periodic contributions.

Gratuity

Provision for gratuity to employees is made on the basis of estimated liability.

(h) Income Taxes

Tax expense comprises of current, deferred and fringe benefit tax.

Current income tax and fringe benefit tax is provided for under the tax payable method, whereby all income taxes devolving upon the Company are provided for after considering all eligible allowances and rebates. Any claims by the Revenue Authorities against the Company are evaluated as regards the likelihood of their crystallizing into a liability. Accordingly, the claims are quantified to.the extent accurately determinable and the provision recorded or disclosure made depending on the assessment of such likelihood.

Deferred income taxes reflect the impact of timing differences (namely the differences that arise in one accounting period and reverse in another) between the taxable income and accounting income for the year, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevai ling enacted or substantially enacted regu lations.

Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

(i) Miscellaneous expenditure

Major non-recurring expenditure is amortized over a period during which the benefit are expected to accrue.

(j) Prioryearadjustments

Significant items of income and expenditure, which relate to prior accounting years, are accounted in the Profit & Loss Account under the head "Prior year adjustments" other than those occasioned by events occurring during or after the close of the year and which are treated as relatable to the current year.

(k) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss after tax for the period attributable to equity shareholders is divided by the weighted average number of shares outstanding including the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.