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Accounting Policies of Gaurav Mercantiles Ltd. Company

Mar 31, 2015

1 BASIS Of PREPARATION OF FINANCIAL STATEMENTS

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles {GAAP) under the historical cost convention on the accrual Loss is except for certain financial instruments which are measured at fair values, GAAP comprises mandatory accounting standards as prescribed under Section 133 of the. Companies Act, 2013 (The Act1) read with Rule 7 of the Companies [Accounts' Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India {3E6I). Accounting policies' and has been consistently applied except where a newly issued accounting standard is intently adopted or a revision to an existing accounting standard requires a change in the accounting Policy with thereto in use.

2 USE OF ESTIMATE

The preparation of financial statements requires management to make Judgments. estimates and assumptions. That affect the application of accounting policies' and the reported amounts of assets and liabilities and disclosures of contingent liabilities at This date of these financial statement is and the reported amounts of revenues and expenses for the years percentage Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Provisions to accounting estimates are recognized in the period in which the estimate is revision and future periods affected.

3 REVENUE RECOGNITION

a. The Company recognizes revenue on the sales of products, act of discounts. when the products are delivered, risks and rewards of ownership pass to the dealer / customer.

b. Revenues are recognized when cost electability of the resulting receivables is reasonably assured.

c. Dividend from investments is recognized when the right to receive the payments established and when no significant uncertainty as to measurability or collectivity exists..

d. Interest income is recognized on the time basis determined by the amount outstanding and the rate applicable and where no significant uncertainty as to measurability or collectability exists.

4 FIXED ASSETS & DEPRECIATION:

a. Fixed Assets - Tangibles

Fixed Assets are stated at cost of acquisition net of recoverable taxes and includes amount added on revaluation, less accumulated depreciation and impairment less, if any All costs, including financing cost till commencement of commercial production, net charges on foreign exchanges contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

b. Depreciation

Depreciation on the fixed assets has been provided on Straight Line Method basis as for the provision of Section 123 of the Companies Act, 2013, and in the manner specified in Schedule II to the Companies Act 2013.

5 IMPAIRMENT OF ASSETS

The Company assesses fixed assets at each balance sheet date whether there is any indication that an asset may be unpaired. If any such indecision exists, the company estimates the recoverable Amount of the assets. If such recoverable amount of the asset or the recoverable amount of the Cash generating unit to Which the assets Lungs, a loss than the carrying amount. carrying amount is reduced to its recoverable amount. The radiation is treated as an impairment loss End is recognized in the profit and loss account. If at the balance sheet date there is an Indication that previously assessed impairment less or longer exists, the recoverable amount is reassessed and the asset is reflected at tine recoverable amount.

G INVESTMENTS:

These are held for long term and valued at cost reduced by diminution of permanent nature therein any.

7 INVENTORIES:

a. Raw Material

Inventories are valued at cost,

b. Work in Process

Inventories are value at cost. The cost of work In process comprises of raw material and other direct cost.

8 RETIREMENT BENEFITS:

a. Gratuity

The liability for the gratuity lo employee is determined on the basic of independent actuarial valuation and charged to the profit & loss account.

b. Provident Fund

Since Provident Fund is not applicable, no provision for provident and liability is required

c. Leave Enhancement / Salary

The company is not required to make provision for leave encashment salary to the employees as the company is making the leave salary payment curing the year itself.

9 TAXES ON INCOME

a. Currant Tax

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

b. Deferred Tax

Deferred tax 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 in respect at unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

Deferred tax assets and liabilities are measured based on the tax rate that are expected to apply in the period when asset is realized or the liability is settled, based or tax rates and tax laws that have been enacted of substantially enacted by the balance sheet date.

10 EARNING PER SHARE (EPS)

EPS is calculated by dividing the profit attributable to the equity Shareholders by the weighted average number of equity Stares outstanding during the year. Numbers used for calculating basic & diluted earning per equity shares are as stated below;


Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a. The financial statements are prepared in accordance with the accounting principles generally accepted in India.

b. The concern generally follows the mercantile system of accounting and recognizes income & expenditure on an accrual basis except those with significant uncertainties.

c. The financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) (which continues to be applicable in terms of General circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013) and other relevant provisions of the Companies Act, 1956.

d. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of classification of assets and liabilities into current and non-current.

2. USE OF ESTIMATE

The preparation of financial statements requires management to make judgments, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods affected.

3. REVENUE RECOGNITION

a. The Company recognizes revenue on the sale of products, net of discounts, when the products are delivered, risks and rewards of ownership pass to the dealer / customer.

b. Revenues are recognized when collect ability of the resulting receivables is reasonably assured.

c. Dividend from investments is recognized when the right to receive the payment is established and when no significant uncertainty as to measurability or collect ability exists.

d. Interest income is recognized on the time basis determined by the amount outstanding and the rate applicable and where no significant uncertainty as to measurability or collect ability exists.

4. FIXED ASSETS & DEPRECIATION:

a. Fixed Assets - Tangibles

Fixed Assets are stated at cost of acquisition net of recoverable taxes and includes amount added on revaluation, less accumulated depreciation and impairment loss, if any. All costs, including financing cost till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

b. Depreciation

Depreciation on tangible assets has been provided on straight line method at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation on additions / deductions of assets during the year is provided on pro-rata basis.

5. INVESTMENTS:

These are held for long term and valued at cost reduced by diminution of permanent nature therein, if any.

6. INVENTORIES

a. Raw Material Inventories are valued at cost.

b. Work in Process

Inventories are valued at cost. The cost of work in process comprises of raw material and other direct cost.

7. RETIREMENT BENEFITS:

a. Gratuity

The liability for the gratuity to employee is determined on the basic of independent actuarial valuation and charged to the profit & loss account.

b. Provident Fund

Since Provident Fund is not applicable, no provision for provident fund liability is required.

c. Leave Encashment / Salary

The company is not required to make provision for leave encashment / salary to the employees as the company is making the leave salary payment during the year itself.

8. TAXES ON INCOME

a. Current Tax

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

b. Deferred Tax

Deferred tax 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 in respect of unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantially enacted by the balance sheet date


Mar 31, 2013

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a. The financial statements are prepared in accordance with the Accounting Principles generally accepted in India.

b. The company has delivered the figure of purchase by adding custom duty. control and foreign exchange loss along with the purchase value of Raw Material.

c. The concern generally follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except those with significant uncertainty.

d. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule VI to the companies act 1956. Based on the nature of products and the time between the acquisition of assets for processing and their company has assets for its operating cycle as 12 months for the purpose of current classification of assets and liabilities.

2 USE OF ESTIMATE

The preparation of financial statements required management and to make judgment estimates and assumptions. That affect the applications of accounting principles and the reported amount of assets and liabilities of those financial statements' and the reported amounts of revenues and expenditure for the year presented. Accrual results may differ from these estimates. Estimates and underlying assumption are reviewed an on ongoing basis revision to accounting estimates are recognized in the period in which the estimate is revised and further periods affected.

3. REVENUE RECOGNITION

a. The Company recognizes revenue on the sales of products net or discounts when the products are delivered, risk and rewards of ownership pass to the customer.

b. Sale of product is presented in financial statements gross of excise duty wherever applicable and net of the indirect taxes.

c. Revenues are Recognized when collectability of the resulting receivables Is reasonably

d' Dividend from investments is recognized within the right to receive the parent is established and when no significant uncertainty as to measurability exist.

e. Interest income is recognized on the time basis determined by the amount stand in and the re-applicable and where no significant uncertainty as to measurability or collectability excise.

4. FIXED ASSETS & DEPRECIATION:

a. Fixed Assets - Tangible assets

Fixed assets are stated at cost of acquisition net of recoverable taxes and includes amount added an revolution, less accumulated deprecation and impairment loss if any. All costs including financing cost till commencement of commercial production, net charge on foreign

exchange contracts and adjustments arising from exchange contacts' and adjustment arising from exchange rate variations attributable to the fixed assets are capitalized.

b. Depreciation

Depreciation on tangible assess has been provided on straight line method in the rates specified in schedule XIV of the companies Act, 1956. Depreciation on additions deductions of assets during the year is provided on pro-rata basis.

5 INVESTMENTS:

These are held for long term and valued at cost reduced by diminution: of permanent nature there are if any. profit or losses of subsidence are accounted for. Fair value of investments in mutual funds is determined on a portfolio basis.

6. INVENTORIES

a. Raw Material

Inventories are valued at lower of cost or net realizable value.

b. Work In Process

inventories are valued at cost. The cost of work in process comprises of raw material and other direct cost and related production overheads as applicable.

7. RETIREMENT BENIFITS:

Expenses & liabilities in respect of employee benefits are recorded in accordance with the Revised Accounting Stand aid (A3)-15 -Employee Benefits (revised 2005}

a. Gratuity

The company has not made any provision in respect of liability of gratuity to employee. Hence we are unable to quantify the impossible on the profit & loss account of the year Under reporting. However the company has derived the liability on estimated basis amounting to Rs. 61,731/-

b. Provident Fund; Since Provident Fund Act is not applicable, no provision for provident fund liability is required.

c. Leave Encashment/Salary

The company is making leave salary payments during the year itself. Hence no provision is required to be made.

8. TAXES ON INCOME

a Current Tax

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

b. Deferred Taxation

Deferred tax & 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 of more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient fu Lure taxable income available to realize such Issus. Deferred tax assets and liabilities' are measured based on the tax rates that are expected to apply in the period when asset is realizes or the liability is settled, based on lax rates and tax that have been enacted or substantially enacted by the balance sheet date


Mar 31, 2012

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a. The financial statements are prepared in accordance with the accounting principles generally accepted in India.

b. Purchase includes value of old ship, custom duty, diesel oil, octopi and foreign exchange loss which are directly related to ship.

c. The concern generally follows the mercantile system of accounting and recognizes income & expenditure on an accrual basis except those with significant uncertainties.

d. These financial statements have been prepared to comply in all material aspect with the accounting standard notified under section 211{3C) [Companies Accounting Standards Rule, 2006, as amended] and the other relevant provisions of the companies Act, 1956.

e. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-noncurrent classification of

2. USE OF ESTIMATE

The preparation of financial statements requires management to make judgments, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods affected.

3. REVENUE RECOGNITION

a. The Company recognizes revenue on the sale of products, net of discounts, when the products are delivered, risks and rewards of ownership pass to the dealer / customer.

b. Sale of products is presented in financial statement gross of excise duty where applicable, and net of other indirect taxes.

c. Revenues are recognized when collectability of the resulting receivables is reasonably assured.

d. Dividend from investments is recognized when the right to receive the payment is established and when no significant uncertainty as to measurability or collectability exists.

e. Interest income is recognized on the time basis determined by the amount outstanding and the rate applicable and where no significant uncertainty as to measurability or collectability exists.

4. FIXED ASSETS & DEPRECIATION:

a. Fixed Assets - Tangibles

Fixed Assets are stated at cost of acquisition net of recoverable taxes and includes amount added on revaluation, less accumulated depreciation and impairment loss, if any All cos- including financing cost till commencement of commercial production, net charges on formic

b. Depreciation

Depreciation on tangible assets has been provided on straight line method at the rates Specified in schedule XIV of the companies Act,1956, Depreciation on additions/deductions for or assets during the year is provided on pro-rata basis.

5. INVESTMENTS:

These are held for long term and valued at cost reduced by diminution of permanent nature No profit or losses of subsidiaries are accounted for. Fair value of investments mutual funds are determined on a portfolio basis.

6. INVENTORIES

a. Raw Material

Inventories are valued at lower of cost or net realizable value.

b. Work in Process

Inventories are valued at cost. The cost of work in process comprises of raw material other direct cost and related production overheads as applicable.

7. RETIREMENT BENEFITS:

Gratuity: Since none of the employee have completed the minimum specified period for eligibility under the payment of Gratuity Act, 1972, no provision for gratuity has been made.

Leave encashment: Since company is paying leave salary during the year no provision is required for the same.

Provident Fund: Since Provident Fund Act is not applicable no provision for provident Fund liability is required.

8. TAXES ON INCOME

a. Current Tax

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

b. Deferred Taxation

Deferred tax 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 in respect of unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses. Deferred tax assets and liabilities are measured or the tax rates that are expected to apply in the Period when asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantially enacted by the balance sheet date


Mar 31, 2011

A) BASIS OF ACCOUNTING:

The accounts of the Company are prepared under the historical cost convention and in accordance with applicable accounting standards except where otherwise stated.

b) INCOME RECOGNITION:

The concern generally follows the mercantile system of accounting and recognizes income & expenditure on an accrual basis except those with significant uncertainties.

C) FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation.

D) INVESTMENTS:

Investments are stated at cost. Market Valuation of Shares are based on Stock Exchange Quotations, If Stock Exchange Quotations are not available then valued at cost.

E) DEPRECIATION:

Depreciation on fixed assets is provided on straight line value method as per the rates prescribed in Schedule XIV of the companies Act, 1956.

F) RETIREMENT BENEFITS:

Gratuity: Since none of the employee have completed the minimum specified period for eligibility under the payment of gratuity Act, 1972, no provision for gratuity has been made.

Leave encashment: Since company is paying leave salary during the year, no provision is required for the same.

Provident Fund: Since Provident Fund Act is not applicable, no provision for Provident Fun< liability is required.

 
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