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Accounting Policies of GKW Ltd. Company

Mar 31, 2015

(i) a) ACCOUNTING CONVENTION & REVENUE RECOGNITION

The accounts have been prepared under the historical cost convention and in accordance with the provisions of the Companies Act, 2013 and Accounting Standards specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014. Accounting policies unless specifically stated to be otherwise, are consistent and in consonance with generally accepted accounting principles.

b) PROVISIONS, CONTINGENCIES AND CONTINGENT ASSETS

Liabilities which can be measured only by using a substantial degree of estimation and in respect of which a reliable estimate can be made of the probable outflow of resources are recognised as provisions.

Contingent liabilities in the nature of possible obligations that arise from past events and the existence of which will be confirmed only by the occurrence or otherwise of future events not wholly within the control of the Company and in respect of present obligation arising from past events for which a reliable estimate of the possible future outflow cannot be made are disclosed by way of Notes to Accounts. Contingent Assets are neither recognised nor disclosed in the financial statement.

c) USE OF ESTIMATES

The preparation of financial statements require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the reported amounts of income and expenses during the year.

Contingencies are recorded when it is probable that a liability will be incurred and the amounts can reasonably be estimated. Differences between the actual results and estimates are recognised in the year in which the results are known / materialised.

(ii) FIXED ASSETS, DEPRECIATION AND IMPAIRMENT

(a) Fixed assets are stated at cost .

(b) Capital work-in-progress is stated at cost incurred during installation period .

(c) Depreciation has been provided on straight line method based on useful life specified in Schedule II of the Companies Act, 2013 after retaining residual value of 5% of the Original cost of the assets.

(d) The amounts at which fixed assets are carried in the Company''s books are reviewed at the Balance Sheet date for any indication of impairment. In case of impairment, an impairment loss is recognised when the carrying amount of assets belonging to a cash generating unit (CGU) or otherwise exceeds the recoverable amount of the assets i.e. the higher of assets'' net selling price or its value in use. Subsequent reversal of such impairment loss if any, is allocated to the respective assets.

(iii) INVESTMENTS

Investments are stated at cost less write downs where applicable.

(iv) INVENTORIES

Year-end inventory items are valued at lower of cost and net realisable value. Cost is computed on the basis of First-In-First Out or Weighted Average Pricing methods as appropriate. Cost in respect of Work-in-Progress represents cost incurred upto the stage of completion. Provisions for obsolesence are made based on technical estimation.

(v) EMPLOYEE BENEFITS

Short -Term Employee benefits are recognised as an expense in the year services are rendered by the employees. Post - employment Plans :

(a) Contribution to defined contribution schemes such as Provident Fund etc. are recognised as and when incurred.

(b) Long Term employee benefits under defined benefit scheme such as contribution to gratuity, leave scheme etc. are determined at close of the year at present value of the amount payable based on actuarial valuation techniques.

Actuarial gains and losses are recognised in the year when they arise.

(vi) SALES

Sales (net of credit notes) are recognised on accrual basis in keeping with applicable trade practice.

(vii) LEASE

Rental income in respect of properties given on operating lease for warehousing purpose is accounted for on fixed monthly basis as per agreement . Initial direct revenue cost is recognised as expenses in the Statement of Profit and Loss.

(viii) TAXES ON INCOME

Provision for Current Income Tax is made on the taxable income using the applicable tax rates and tax laws. Deferred tax assets or liabilities arising on account of timing differences, which are capable of reversal in one or more subsequent years is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are not recognised unless there is sufficient assurance with respect to reversal thereof in future years.


Mar 31, 2013

(i) a) accountInG conVentIon & ReVenue RecoGnItIon

the accounts have been prepared under the historical cost convention and in accordance with the provisions of the Companies Act,1956 and Accounting Standards notifed vide Companies (Accounting Standards) Rules, 2006. Accounting policies unless specifcally stated to be otherwise, are consistent and in consonance with generally accepted accounting principles.

b) pRoVIsIons, contInGencIes and contInGent assets

Liabilities which can be measured only by using a substantial degree of estimation and in respect of which a reliable estimate can be made of the probable outfow of resources are recognised as provisions.

Contingent liabilities in the nature of possible obligations that arise from past events and the existence of which will be confrmed only by the occurrence or otherwise of future events not wholly within the control of the Company and in respect of present obligation arising from past events for which a reliable estimate of the possible future outfow cannot be made are disclosed by way of notes to Accounts.

Contingent Assets are neither recognised nor disclosed in the fnancial statement.

c) use oF estIMates

the preparation of fnancial statements require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the reported amounts of income and expenses during the year.

Contingencies are recorded when it is probable that a liability will be incurred and the amounts can reasonably be estimated. differences between the actual results and estimates are recognised in the year in which the results are known/materialised.

(ii) FIXed assets, depRecIatIon and IMpaIRMent

(a) Fixed assets are stated at cost.

(b) Capital work-in-progress is stated at cost incurred during installation period.

(c) depreciation has been provided on written down value or straight line method for assets aquired prior to April 1989 at the applicable rates as prescribed in Schedule XIV of the Companies Act. 1956 or at rates (in percentage) indicated below on straight line method. However, all assets acquired after 1.4.89 have been depreciated on straight line method at the rates prescribed in Schedule XIV.

Land - Leasehold 3.33/1.66

Buildings 3.33/2.00

(d) depreciation is provided on the basis of month of capitalisation. Items of fxed asset individually valued upto Rs 5000 are fully depreciated in the books of account in the year in which they are put to use.

(e) the amounts at which fxed assets are carried in the Company''s books are reviewed at the Balance Sheet date for any indication of impairment. In case of impairment, an impairment loss is recognised when the carrying amount of assets belonging to a Cash Generating Unit (CGU) or otherwise exceeds the recoverable amount of the assets i.e. the higher of assets'' net selling price or its value in use. Subsequent reversal of such impairment loss if any, is allocated to the respective assets.

(iii) InVestMents

Investments are stated at cost less write downs where applicable.

(iv) InVentoRIes

Year-end inventory items are valued at lower of cost and net realisable value. Cost is computed on the basis of First-In-First out or Weighted Average Pricing methods as appropriate. Cost in respect of Work-in-Progress represents cost incurred upto the stage of completion Provisions for obsolesence are made based on technical estimation.

(v) FoReIGn cuRRencY tRansactIons

a) transactions in foreign currency are accounted for at the exchange rate prevailing on the date of such transaction.

b) Receivables/payables in foreign currencies are translated at the appropriate forward contract rate, or, if not covered, at the exchange rate ruling at the balance sheet date. the gain/loss arising on account of such translation, as also on the exchange differences on settlement of the foreign currency transactions during the year are recognised as income or expense and are refected in the Statement of Proft and Loss under respective heads of accounts.

(vi) eMpLoYee BeneFIts

Short - term employee benefts are recognised as an expense in the year services are rendered by the employees.

Post - employment Plans:

(a) Contribution to defned contribution schemes such as Provident Fund etc. are recognised as and when incurred.

(b) Long term employee benefts under defned beneft scheme such as contribution to gratuity, leave scheme etc. are determined at close of the year at present value of the amount payable based on actuarial valuation techniques.

Actuarial gains and losses are recognised in the year when they arise .

(vii) saLes

Sales (net of credit notes) are recognised on accrual basis in keeping with applicable trade practice.

(viii) taXes on IncoMe

Provision for Current Income tax is made on the taxable income using the applicable tax rates and tax laws. deferred tax assets or liabilities arising on account of timing differences, which are capable of reversal in one or more subsequent years is recognised using the tax rates and tax laws that have been enacted or substantively enacted. deferred tax assets are not recognised unless there is suffcient assurance with respect to reversal thereof in future years.


Mar 31, 2012

(i) a) ACCOUNTING CONVENTION AND REVENUE RECOGNITION

The accounts have been prepared under the historical cost convention and in accordance with the provisions of the Companies Act,1956 and Accounting Standards notified vide Companies (Accounting Standards) Rules,2006. Accounting policies unless specifically stated to be otherwise are consistent and in consonance with generally accepted accounting principles.

b) PROVISIONS, CONTINGENCIES AND CONTINGENT ASSETS

Liabilities which can be measured only by using a substantial degree of estimation and in respect of which a reliable estimate can be made of the probable outflow of resources are recognized as provisions.

Contingent liabilities in the nature of possible obligations that arise from past events and the existence of which will be confirmed only by the occurrence or otherwise of future events not wholly within the control of the Company and in respect of present obligation arising from past events for which a reliable estimate of the possible future outflow cannot be made are disclosed by way of Notes to financial statements.

Contingent Assets are neither recognized nor disclosed in the financial statement.

c) USE OF ESTIMATES

The preparation of financial statements require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the reported amounts of income and expenses during the year.

Contingencies are recorded when it is probable that a liability will be incurred and the amounts can reasonably be estimated. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

(ii) FIXED ASSETS, DEPRECIATION AND IMPAIRMENT

(a) Fixed assets are stated at cost .

(b) Capital work-in-progress is stated at cost incurred during installation period .

(c) Depreciation has been provided on written down value or straight line method for assets acquired prior to April 1989 at the applicable rates as prescribed in Schedule XIV of the Companies Act. 1956 or at rates ( in percentage) indicated below on straight line method. However, all assets acquired after 1.4.89 have been depreciated on straight line method at the rates prescribed in Schedule XIV.

Land - Leasehold 3.33/1.66

Buildings 3.33/2.00

(d) Depreciation is provided on the basis of month of capitalisation. Items of fixed asset individually valued upto Rs 5000 are fully depreciated in the books of account in the year in which they are put to use.

(e) The amounts at which fixed assets are carried in the Company's books are reviewed at the Balance Sheet date for any indication of impairment. In case of impairment, an impairment loss is recognized when the carrying amount of assets belonging to a Cash Generating Unit (CGU) or otherwise exceeds the recoverable amount of the assets i.e. the higher of assets' net selling price or its value in use. Subsequent reversal of such impairment loss if any, is allocated to the respective assets .

(iii) INVESTMENTS

Investments are stated at cost less write downs where applicable.

(iv) INVENTORIES

Year-end inventory items are valued at lower of cost and net realizable value. Cost is computed on the basis of First-In-First Out or Weighted Average Pricing methods as appropriate. Cost in respect of Work-in-Progress represents cost incurred up to the stage of completion Provisions for obsolescence are made based on technical estimation .

(v) FOREIGN CURRENCY TRANSACTIONS

a) Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of such transaction .

b) Receivables/payables in foreign currencies are translated at the appropriate forward contract rate, or, if not covered, at the exchange rate ruling at the balance sheet date. The gain / loss arising on account of such translation, as also on the exchange differences on settlement of the foreign currency transactions during the year are recognized as income or expense and are reflected in the profit and loss statement under respective heads of accounts

(vi) EMPLOYEE BENEFITS

Short -Term Employee benefits are recognized as an expense in the year services are rendered by the employees .

Post - employment Plans :

(a) Contribution to defined contribution schemes such as Provident Fund etc. are recognized as and when incurred .

(b) Long Term employee benefits under defined benefit scheme such as contribution to gratuity, leave scheme etc. are determined at close of the year at present value of the amount payable based on actuarial valuation techniques .

Actuarial gains and losses are recognized in the year when they arise

(vii) SALES

Sales (net of credit notes) are recognized on accrual basis in keeping with applicable trade practice.

(viii) TAXES ON INCOME

Provision for Current Income Tax is made on the taxable income using the applicable tax rates and tax laws. Deferred tax assets or liabilities arising on account of timing differences, which are capable of reversal in one or more subsequent years is recognized using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are not recognized unless there is sufficient assurance with respect to reversal thereof in future years.


Mar 31, 2011

(i) a) ACCOUNTING CONVENTION AND REVENUE RECOGNITION

The accounts have been prepared under the historical cost convention and in accordance with the provisions of the Companies Act,1956 and Accounting Standards notified vide Companies (Accounting Standards) Rules, 2006. Accounting policies unless specifically stated to be otherwise, are consistent and in consonance with generally accepted accounting principles.

b) PROVISIONS, CONTINGENCIES AND CONTINGENT ASSETS

Liabilities which can be measured only by using a substantial degree of estimation and in respect of which a reliable estimate can be made of the probable outflow of resources are recognised as provisions.

Contingent liabilities in the nature of possible obligations that arise from past events and the existence of which will be confirmed only by the occurrence or otherwise of future events not wholly within the control of the Company and in respect of present obligation arising from past events for which a reliable estimate of the possible future outflow cannot be made are disclosed by way of Notes to Accounts.

Contingent Assets are neither recognised nor disclosed in the financial statement.

c) USE OF ESTIMATES

The preparation of financial statements require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the reported amount of income and expenses during the year.

Contingencies are recorded when it is probable that a liability will be incurred and the amounts can reasonably be estimated. Differences between the actual results and estimates are recognised in the year in which the results are known/materialised.

(ii) FIXED ASSETS, DEPRECIATION AND IMPAIRMENT

(a) Fixed assets are stated at cost.

(b) Capital work-in-progress is stated at cost incurred during installation period and includes advances to suppliers.

(c) Depreciation has been provided on written down value or straight line method for assets acquired prior to April 1989 at the applicable rates as prescribed in Schedule XIV of the Companies Act, 1956 or at rates (in percentage) indicated below on straight line method.

However, all assets acquired after 1.4.89 have been depreciated on straight line method at the rates prescribed in Schedule XIV.

Land - Leasehold 3.33/1.66

Buildings 3.33/2.00

Depreciation on Plant & Machinery at division which are not in operation has been provided on single shift basis.

(d) Depreciation is provided on the basis of month of capitalisation. Items of fixed assets individually valued upto Rs. 5000 are fully depreciated in the books of account in the year in which they are put to use.

(e) The amounts at which fixed assets are carried in the Company's books are reviewed at the Balance Sheet date for any indication of impairment. In case of impairment, an impairment loss is recognised when the carrying amount of assets belonging to a Cash Generating Unit (CGU) or otherwise exceeds the recoverable amount of the assets i.e.the higher of assets' net selling price or its value in use. Subsequent reversal of such impairment loss if any, is allocated to the respective assets.

(iii) INVESTMENTS

Investments are stated at cost less write downs where applicable.

(iv) INVENTORIES

Year-end inventory items are valued at lower of cost and net realisable value. Cost is computed on the basis of First-In-First Out or Weighted Average Pricing methods as appropriate. Cost in respect of Work-in-Progress represents cost incurred upto the stage of completion. Provisions for obsolesence are made based on technical estimation.

(v) FOREIGN CURRENCY TRANSACTIONS

a) Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of such transaction.

b) Receivables/payables in foreign currencies are translated at the appropriate forward contract rate, or, if not covered, at the exchange rate ruling at the balance sheet date. The gain/loss arising on account of such translation, as also on the exchange differences on settlement of the foreign currency transactions during the year are recognised as income or expense and are reflected in the profit and loss account under respective heads of accounts.

(vi) EMPLOYEE BENEFITS

Short-Term employee benefits are recognised as an expense in the year services are rendered by the employees. Post-employment Plans :

(a) Contribution to defined contribution schemes such as Provident Fund etc. are recognised as and when incurred.

(b) Long-Term employee benefits under defined benefit scheme such as contribution to gratuity, leave scheme etc. are determined at close of the year at present value of the amount payable based on actuarial valuation techniques.

Actuarial gains and losses are recognised in the year when they arise.

(vii) SALES

Sales (net of credit notes) are recognised on accrual basis in keeping with applicable trade practice.

(ix) TAXES ON INCOME

Provision for Current Income Tax is made on the taxable income using the applicable tax rates and tax laws. Deferred tax assets or liabilities arising on account of timing differences, which are capable of reversal in one or more subsequent years is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets including those arising out of MAT credit are not recognised unless there is sufficient assurance with respect to reversal thereof in future years.


Mar 31, 2010

(i) a) ACCOUNTING CONVENTION & REVENUE RECOGNITION

The accounts have been prepared under the historical cost convention and in accordance with the provisions of the Companies Act, 1956 and Accounting Standards notified vide Companies (Accounting Standards) Rules, 2006. Accounting policies unless specifically stated to be otherwise, are consistent and in consonance with generally accepted accounting principles.

b) PROVISIONS, CONTINGENCIES AND CONTINGENT ASSETS

Liabilities which can be measured only by using a substantial degree of estimation and in respect of which a reliable estimate can be made of the probable outflow of resources are recognised as provisions.

Contingent liabilities in the nature of possible obligations that arise from past events and the existence of which will be confirmed only by the occurrence or otherwise of future events not wholly within the control of the Company and in respect of present obligation arising from past events for which a reliable estimate of the possible future outflow cannot be made are disclosed by way of Notes to Accounts.

Contingent Assets are neither recognised nor disclosed in the financial statement.

c) USE OF ESTIMATES

The preparation of financial statements require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the reported amounts of income and expenses during the year.

Contingencies are recorded when it is probable that a liability will be incurred and the amounts can reasonably be estimated. Differences between the actual results and estimates are recognised in the year in which the results are known / materialised.

(ii) FIXED ASSETS, DEPRECIATION AND IMPAIRMENT

a) Fixed assets are stated at cost.

b) Capital work-in-progress is stated at cost incurred during installation period and includes advances to suppliers.

c) Depreciation has been provided on written down value or straight line method for assets aquired prior to April 1989 at the applicable rates as prescribed in Schedule XIV of the Companies Act. 1956 or at rates (in percentage) indicated below on straight line mehtod.

Depreciation on Plant & Machinery at division which are not in operation has been provided on single shift basis.

d) Depreciation is provided on the basis of month of capitalisation. Items of fixed asset individually valued upto Rs 5000 are fully depreciated in the books of account in the year in which they are put to use.

e) The amounts at which fixed assets are carried in the Companys books are reviewed at the Balance Sheet date for any indication of impairment. In case of impairment, an impairment loss is recognised when the carrying amount of assets belonging to a Cash Generating Unit (CGU) or otherwise exceeds the recoverable amount of the assets i.e. the higher of assets net selling price or its value in use. Subsequent reversal of such impairment loss if any, is allocated to the respective assets.

(iii) INVESTMENTS

Investments are stated at cost less write-downs where applicable.

(iv) INVENTORIES

Year-end inventory items are valued at lower of cost and net realisable value. Cost is computed on the basis of First In-First-Out or Weighted Average Pricing methods as appropriate. Cost in respect of Work-in-Progress represents cost incurred upto the stage of completion. Provisions for obsolescence are made based on technical estimation.

(v) FOREIGN CURRENCY TRANSACTIONS

a) Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of such transaction.

b) Receivables/payables in foreign currencies are translated at the appropriate forward contract rate, or if not covered, at the exchange rate ruling at the balance sheet date. The gain/loss arising on account of such translation, as also on the exchange differences on settlement of the foreign currency transactions during the year are recognised as income or expense and are reflected in the profit and loss account under respective heads of accounts.

(vi) EMPLOYEE BENEFITS

Short-Term Employee benefits are recognised as an expense in the year services are rendered by the employees.

Post - employment Plans :

a) Contribution to defined contribution schemes such as Provident Fund etc. are recognised as and when incurred.

b) Long Term employee benefits under defined benefit scheme such as contribution to gratuity, leave scheme etc. are determined at cost of the year at present value of the amount payable based on actuarial valuation techniques.

Actuarial gains and losses are recognised in the year when they arise.

(vii) SALES

Sales (net of credit notes) are recognised on accrual basis in keeping with applicable trade practice.

(viii) TAXES ON INCOME

Provision for Current Income Tax is made on the taxable income using the applicable tax rates and tax laws. Deferred tax assets or liabilities arising on account of timing differences, which are capable of reversal in one or more subsequent years is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are not recognised unless there is sufficient assurance with respect to reversal thereof in future years.

 
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