Accounting Policies of Garware Marine Industries Ltd. Company

Mar 31, 2015

A. System of Accounting :

The Company generally follows the accrual basis of accounting both as to Income and Expenditure except those with significant uncertainties. Financial Statements are based on Historical costs.

B. Depreciation :

Depreciation is systematically allocated over the useful life of an asset on straight line method at rates specified in part C of schedule II of The Companies Act, 2013.

C. Fixed Assets :

All Fixed Assets are stated at cost less Depreciation.

D. Inventories :

Items of Inventories are valued on the basis given below :

Raw Materials.... At cost

Work - in - Process ... At cost

Stores, Spare, Packing Material & Fuel ... At cost

Finished Goods ... At cost or Realisable value whichever is lower

E. Investment :

Investments are stated at cost of acquisition. No provision for diminuation of permanent nature is provided on long term Investments.

F. Foreign Exchange Transactions :

Transactions are accounted on exchange rate prevailing on the date of Accounting of Transaction.

G. Staff Benefits :

The Company contributes to the Group Gratuity Scheme of Life Insurance Corporation of India for the Employees. The contribution is accounted in the year of payment. Leave encashment is also accounted on actual payment basis.

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Jun 30, 2014

A. System of Accounting :

The Company generally follows the accrual basis of accounting both as to Income and Expenditure except those with significant uncertainties. Financial Statements are based on Historical cost.

B. Depreciation :

(i) On original cost of all fixed assets installed upto 30.09.1987 on straight line method at rates prescribed U/S 205(2) (B) of the Companies Act, 1956 read with the circular No.1/86 (No.1.1.86CLV) dated 21.05.1986 of the Department of Company affairs.

(ii) On all Fixed assets installed after 30.09.1987 on straight line method at rates prescribed in schedule XIV of Companies Act, 1956.

(iii) On Leasehold land on amortisation basis.

C. Fixed Assets :

All Fixed Assets are stated at cost less Depreciation.

D. Inventories :

Items of Inventories are valued on the basis given below :

Raw Materials.... At cost

Work - in - Process ... At cost

Stores, Spare, Packing Material & Fuel ... At cost

Finished Goods ... At cost or Realisable value whichever is lower

E. Investment :

Investments are stated at cost of acquisition. No provision for diminuation of permanent nature is provided on long term Investments.

F. Foreign Exchange Transactions :

Transactions are accounted on exchange rate prevailing on the date of Accounting of Transaction.

G. Staff Benefits :

The Company contributes to the Group Gratuity Scheme of Life Insurance Corporation of India for the Employees. The contribution is accounted in the year of payment. Leave encashment is also accounted on actual payment basis.

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Jun 30, 2013

A. System of Accounting :

The Company generally follows the accrual basis of accounting both as to Income and Expenditure except those with signifcant uncertainties. Financial Statements are based on Historical cost.

B. Depreciation :

( i) On original cost of all fxed assets installed upto 30.09.1987 on straight line method at rates prescribed U/S 205(2) (B) of the Companies Act, 1956 read with the circular No.1/86 (No.1.1.86CLV) dated 21.05.1986 of the Department of Company affairs.

(ii) On all Fixed assets installed after 30.09.1987 on straight line method at rates prescribed in schedule XIV of Companies Act, 1956.

(iii) On Leasehold land on amortisation basis.

C. Fixed Assets :

All Fixed Assets are stated at cost less Depreciation.

D. Inventories :

Items of Inventories are valued on the basis given below :

Raw Materials…. At cost

Work - in - Process …. At cost

Stores, Spare, Packing Material & Fuel …. At cost

Finished Goods …. At cost or Realisable value whichever is lower

E. Investment :

Investments are stated at cost of acquisition. No provision for diminuation of permanent nature is provided on long term Investments.

F. Foreign Exchange Transactions :

Transactions are accounted on exchange rate prevailing on the date of Accounting of Transaction.

G. Staff Benefts :

The Company contributes to the Group Gratuity Scheme of Life Insurance Corporation of India for the Employees. The contribution is accounted in the year of payment. Leave encashment is also accounted on actual payment basis.

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Jun 30, 2010

A. System of Accounting :

The Company generally follows the accrual basis of accounting both as to Income and Expenditure except those with significant uncertainties. Financial Statements are based on Historical cost.

B. Depreciation:

(i) On original cost of all fixed assets installed upto 30 09.1987 on straight line method at rates prescribed U/S 205(2) (B) of the Companies Act, 1956 read with the circular No.1/86 (No.1.1.86CLV) dated 21.05.1S86of the Department of Company affairs.

(ii) On all Fixed assets installed after 30.09.1987 en straight line method at rates prescribed in schedule XIV of Companies Act, 1956.

(iii) On Leasehold land on amortisation basis.

C. Fixed Assets :

All Fixed Assets are stated at cost less Depreciation.

D. Inventories:

Items of Inventories are valued on the basis given below :

Raw Materials At cost

Work - in - Process At cost

Stores, Spare, Packing Material & Fuel At cost

Finished Goods At cost or Realisable value whichever is lower

E. Investment:

investments are stated at cost of acquisition. No provision for diminuation of permanent nature has been provided on long term Investments.

F. Foreign Exchange Transactions :

Transactions are accounted on exchange rate prevailing on the date of Accounting of Transaction.

G. Staff Benefits :

The Company has its own Gratuity Fund for the Employees to cover gratuity liability contribution and is also accounted in the year of payment. Leave encashment is also accounted on actual payment basis.

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Dec 31, 2000

A. System of Accounting :

The Company generally follows the accrual basis of accounting both as to income and expenditure except those with significant uncertainties. Financial statements are based on historical cost.

B. Depreciation :

(i) On original cost of all fixed assets installed upto 30.9.1987 on straight line method at rates prescribed u/s.205(2) (b) of the Companies Act. 1956 read with the circular No. 1/86 (No. 1.1.86 CLV) dated 21.5.1986 of the Department of Company Affairs.

(ii) On all fixed assets installed after 30.9.1987 on straight line method at rates prescribed in schedule XIV of Companies Act, 1956.

(iii) On revaluation increase arising on revaluation made as on 1st of April, 1984 at the rates calculated on straight line method over residual life of such assets as assessed by the valuers. An amount of Rs. 19,14,426 (Previous year Rs. 19,14,426/-) has been transferred from Revaluation Reserve to Profit and Loss Account representing depreciation provided relating to revaluation increase.

(iv) On leasehold land on amortisation basis.

C. Fixed Assets :

(i) All fixed assets are stated at cost less Depreciation.

(ii) Revaluation of Leasehold Lands, Buiidings and Plant & machinery had been made as on 1st April, 1984 on the basis of Valuation Report submitted by M/s. P.C. Gandhi & Associates, valuers appointed for the purpose. The resultant increase on such revaluation over the written down value of these assets amounting to Rs.4,18,00,31 OAhad been credited to Revaluation Reserve.

E Investment:

Investments are stated at cost of acquisition.

F. Foreign Exchange Transactions :

Transactions are accounted on exchange rate prevailing on the date of accounting of transaction.

G. Staff Benefits :

The Company has its own gratuity fund for the employees to cover gratuity liability contribution and is

1. accounted in the year of payment. Leave encashment is also accounted on actual payment basis.