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Accounting Policies of ABC Gas (International) Ltd. Company

Mar 31, 2015

I) Basis of preparation of financial statement:

The accounts have been prepared on the basis of historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 2013 as adopted consistently by the company

ii) Method of accounting:

Method of accounting of accounting employed by the company is on accural basis except in case of gratuity which is accounted on cash basis.

iii) Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles which requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period.

Differences between the actual results and estimates are recognised in the period in which the results are known or materialized.

iv) Fixed assets and depreciation:

Fixed assets are stated at cost of acquisition less accumulated depreciation. Depreciation is provided on Straight Line Method at the rates specified under Schedule II of the Companies Act, 2013, this being the first year.

Depreciation on additions and deletions are provided on prorata basis.

v)Inventories:

Inventories are valued at cost or realizable value whichever is lower. Projects under work in progress are carried at cost, comprising direct cost, and related incidental expenses.

vi) Investments:

Long term investments are stated at cost unless there is any permanent diminution in the vale of investments. Short term investment at cost/ market value whichever is less.

vii) Revenue Recognition:

Sales are recorded exclusive of Excise duty & Sales Tax and is recognized when the risks and rewards of the ownsership is transferred and there exists no uncertainty. Rent Income is booked on the accrual basis as per the agreement with the lessee.

viii) Taxes On Income: Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act,1961. Deferred tax is recognized for all timing differences, subject to the consideration of prudence, applying the tax rates that have been substantively enacted by the Balance Sheet date.

viii) Provisions, Contingent liability and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is payable that there will be an outflow of resources.

Contingent liabilities are not recognised but are disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

ix) Gratuity:

The company follows a policy of accounting for gratuity as and when it is paid and doesn't get the actuarial valuation done.


Mar 31, 2012

I) Basis of preparation of financial statement:

The accounts have been prepared on the basis of historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the company

ii) Method of accounting:

Method of accounting of accounting employed by the company is on accural basis except in case of gratuity which is accounted on cash basis.

iii) Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles which requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known or materialized.

iv) Fixed assets and depreciation:

Fixed assets are stated at cost of acquisition less accumulated depreciation. Depreciation is provided on Straight Line Method at the rates specified under Schedule XIV to the Companies Act,1956.Depreciation on additions and deletions are provided on prorata basis.

v) Inventories:

Inventories are valued at cost or realizable value whichever is lower. Projects under work in progress are carried at cost, comprising direct cost, and related incidental expenses.

vi) Investments:

Long term investments are stated at cost unless there is any permanent diminution in the vale of investments. Short term investment at cost/ market value whichever is less.

vii) Revenue Recognition:

Sales are recorded exclusive of Excise duty & Sales Tax and is recognized when the risks and rewards of the ownsership is transferred and there exists no uncertainty. Rent Income is booked on the accrual basis as per the agreement with the lessee.

viii) Taxes On Income:

Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is recognized for all timing differences, subject to the consideration of prudence, applying the tax rates that have been substantively enacted by the Balance Sheet date.

viii) Provisions, Contingent liability and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is payable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

ix) Gratuity:

The company follows a policy of accounting for gratuity as and when it is paid and doesn't get the actuarial valuation done.


Mar 31, 2011

A. System of Accounting:-

i. The company generally follows the accrual basis of accounting both as to income & expenditure except having significant uncertainties.

ii. Financial statements are based on historical cost. These costs are not adjusted to reflect the impact of the changing value in the purchasing power of money.

B. Fixed Assets: -

Fixed assets are stated at cost less accumulated depredation. All direct expenses attributable to fixed assets are capitalized.

C. Deprecation:-

Depreciation of fixed assets has been provided on the straight-line method rate applicable as per schedule XIV of the Companies Act, 1956. and Pro-rata in case of addition / disposal of fixed assets during the year.

D. Sales: -

Sales are recorded exclusive of Excise duty & Sales Tax. E Investments:-

Investments are valued at cost of acquisition F: Inventory valuation:-

i. Finished goods are valued at lower of cost or Net realizable value.

ii. Raw materials are valued at cost or market value whichever is lower.

III. Work in progress - Projects under work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

G. Gratuity: -

Gratuity is being accounted on cash basis.

H. Provision and Contingencies: -

Provision is recognized when the company has a part.

I. Taxes on Income

Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act,1961. Deferred tax is recognized for all timing differences, subject to the consideration of prudence, applying the tax rates that have been substantively enacted by the balance Sheet date.


Mar 31, 2010

A. System of Accounting:-

i. The company generally follows the accrual basis of accounting both as to income & expenditure except having significant uncertainties.

ii. Financial statements are based on historical cost. These costs are not adjusted to reflect the impact of the changing value in the purchasing power of money.

B. Fixed Assets: -

Fixed assets are stated at cost less accumulated depreciation. All direct expenses attributable to fixed assets are capitalized.

C. Depreciation:-

Depreciation of fixed assets has been provided on the straight-line method rate applicable as per schedule XIV of the Companies Act, 1956. and Pro-rata in case of addition / disposal of fixed assets during the year.

D. Sales: -

Sales are recorded exclusive of Excise duty & Sales Tax.

E. Investments;-

Investments are valued at cost of acquisition

F. Inventory valuation:-

i. Finished goods are valued at lower of cost or Net realizable value. ii. Raw materials are valued at cost or market value whichever is lower.

G. Gratuity; -

Gratuity is being accounted on cash basis.

H. Contingent liability; -

Contingent liabilities are not provided for and are disclosed separately by way of notes.