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Accounting Policies of G G Automotive Gears Ltd. Company

Mar 31, 2014

(A) ACCOUNTING CONVENTION

The financial statements are prepared on the basis of going concern, under historical cost convention on an accrual basis and in accordance with the requirement of the Companies Act, 1956 and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India to the extent applicable.

(B) INVESTMENTS:

Investments are stated at cost.

(C) INVENTORIES

Finished goods are valued at lower of cost and market price, while Raw Material and Work in Progress are valued at cost. The Scrap is valued at realizable value. Cost of work in progress excludes expenses on material received for processing on Job basis.

(D) FIXED ASSETS AND DEPRECIATION:

Fixed assets are stated at cost and depreciated on written down value (WDV) method in accordance with provisions of schedule XIV of the Companies Act, 1956 except addition on Machinery w.e.f. 01.04.1989, vehicle and computer w.e.f. 01.04.1996 where S.L.M. method is followed.

(E) REVENUE RECOGNITION:

Sales are recognised at the point of dispatch to customers.

2. ACCOUNTING STANDARDS:

a) Accounting Standard 11 – Accounting for effects of change in Foreign Exchange

b) Related parties disclosure as per accounting Standard 18:

The related parties, as defined by Accounting Standard 18 '' Related party disclosure'' issued by The Institute of Chartered Accountants of India, in respect of which the disclosures have been made and identified on the basis of disclosures made by the company.

c) Lease Agreement as per Accounting Standard 19:

The company has entered into Lease Agreement for Mumbai Office on 25.08.2010. This has become null and void w.e.f. vacating the office.

e) Taxes on Income Tax as per Accounting Standard 22:

i. Provision for Income Tax is made in accordance with the Income Tax Act, 1961.

ii. Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

iii. The company has recognized Deferred Taxes which result from timing difference between the Book profits and Tax profits. Consequently, as required by the said standard, the company has recognised the deferred tax balance that would have accumulated prior to adopting the standard, as if the standard had been in effect.


Mar 31, 2013

(A) ACCOUNTING CONVENTION

The financial statements are prepared on the basis of going concern, under historical cost convention on an accrual basis and in accordance with the requirement of the Companies Act, 1956 and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India to the extent applicable.

(B) INVESTMENTS:

Investments are stated at cost.

(C) INVENTORIES

Finished goods is valued at lower of cost and market price, while Raw Material and Work in Progress are valued at cost. The Scrap is valued at realizable value. Cost of work in progress excludes expenses on material received for processing on Job basis.

(D) FIXED ASSETS AND DEPRECIATION:

i) Fixed assets are stated at cost and depreciated on written down value (WDV) method in accordance with provisions of schedule XIV of the Companies Act, 1956 except addition on Machinery w.e.f. 01.04.1989, vehicle and computer w.e.f. 01.04.1996 where S.L.M. method is followed.

(E) REVENUE RECOGNITION:

Sales are recognised at the point of dispatch to customers.


Mar 31, 2012

(A) ACCOUNTING CONVENTION

The financial statements are prepared on the basis of going concern, under historical cost convention on an accrual basis and in accordance with the requirement of the Companies Act, 1956 and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India to the extent applicable.

(B) INVESTMENTS:

Investments are stated at cost.

(C) INVENTORIES

Finished goods are valued at lower of cost and market price, while Raw Material and Work in Process are valued at cost. The Scrap is valued at realizable value. Cost of work in process excludes expenses on material received for processing on Job basis.

(D) FIXED ASSETS AND DEPRECIATION:

i) Fixed assets are stated at cost and depreciated on written down value (WDV) method in accordance with provisions of schedule XIV of the Companies Act, 1956 except addition on Machinery w.e.f. 01.04.1989, vehicle and computer w.e.f. 01.04.1996 where S.L.M. method is followed.

(E) REVENUE RECOGNITION:

Sales are recognised at the point of dispatch to customers.

 
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