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Accounting Policies of GTV Engineering Ltd. Company

Mar 31, 2015

1. Corporate information

GTV Engineering Ltd. is a Limited company incorporated on 4[h December 1990. The company is engaged in Hitech steel fabrication having its manufacturing unit at Plot No. 216-218, Industrial Area, Mandideep, Dist. Raisen and Plot No. K-20-22, Industrial Area, Malanpur, Dist. Bhind and Plot No. 69, Industrial Area, Mandideep, Dist Raisen, M.P.

2. Basis of accounting and preparation of financial statements

(a) The financial statements have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP), and applicable Accounting Standards referred to in section 133 of the Companies Act, 2013, (The Act). The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) The classification of assets and liabilities of the company into current or non-current is based on the criterion specified in the Revised Schedule III to the Companies Act, 2013. The company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

3. Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

4. " Cash Flow Statement "

Cash Flow are reported using the indirect method, where by Profit before tax is adjusted for the effects of transaction of a non cash nature , any deferral or accruals of past or future cash receipts or payments and item of Income or expenses associated with investing and financing cash flow . The cash flow from operating investing and financing activities of the company are egregated.

5. Revenue Recognition

(a) Sales

Revenue from sale of goods is recognized:

- When all the significant risks and rewards of ownership are transferred to the buyer and the seller retains no effective control of the goods transferred to a degree usually associated with ownership and

- No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

(b) " Interest "

Interest income is recognized on a time proportion basis taking into account the amount |outstanding and the rate applicable

6. Fixed Assets

Fixed assets are carried at cost less accumulated depreciation. Cost of fixed assets comprises its purchase price and any attributable expenditure (both direct and indirect) for bringing an asset to its working condition for its intended use.

7. " Depreciation and amortization"

As per the requirements of Companies act, 2013, the company has computed depreciation with reference to the useful life of respective assets specified in and in the manner prescribed in Schedule II to the Act. Accordingly, the assets whose useful life has already exhausted as on 1st April,2014 has been charged to opening balance of retained earnings amounting to Rs.162.87 Lacs . Further, based on the residual life of the remaining assets, depreciation amount reduced by Rs.2.07 Lacs . In relation to the assets added after 1st April,2014, depreciation has been charged as per the provisions of said Schedule II.

8. Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

9. Inventories

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of

inventory is computed as under:

- In case of raw materials at FIFO plus direct expenses.

- In case of work in progress at raw material cost plus conversion costs depending upon the stage of completion.

- In case of finished goods at raw material cost plus conversion costs, packing cost and other overheads incurred to bring the goods to their present location and condition.

10. Employee Benefits

(a) Short term employee benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

(b) Post-employment benefits: Employee Provident Fund

The eligible employees of the Company are entitled to receive post employment benefits in respect of provident fund, in which both the employees and the Company make monthly contributions at a specified percentage of the employees' eligible salary.

11. Borrowing costs

Borrowing cost includes amortization of ancillary cost related to borrowings and foreign exchange to the extent they regarded as adjustment to interest cost. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets till such time that the asset is ready for its intended use or sale . A qualifying asset is one that necessarily takes substantial period of time to get ready for the intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

12. Earnings per share

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding during the period.

13. Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of an outflow of resources embodying the economic benefit is remote.

14. Taxation

Tax expense comprises of current and deferred tax. Current tax is measured at the amount expected to be paid in accordance with the Income-tax Act, 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rate and tax laws enacted or substantially enacted at the balance sheet date.

15. The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year's presentation.


Mar 31, 2014

1. Corporate information

GTV Engineering Ltd. is a Limited company incorporated under the provisions of the Companies Act 1956 on 4th December 1990. The company is engaged in Hitech steel fabrication having its manufacturing unit at Plot No 216-218,Industrial Area' MandideeP/ Dist. Raisen and Hot No. K-20-22, Industrial Area, Malanpur, Dist. Bhind and Plot No. 69, Industrial Area Mandideep, Dist Raisen, M.P.

2. Basis of accounting and preparation of financial statements

(a) The financial statements have been prepared on accrual basis under the historical cost" convention in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP), and Accounting Standards referred to in section 211 (3C) of the Companies Act, 1956 The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) The classification of assets and liabilities of the company into current or non-current is based on the criterion specified in the Revised Schedule VI to the Companies Act, 1956. The company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

3. Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize

4. Cash Flow Statement

Cash Flow statement has been prepared in accordance with the indirect method prescribed in Accounting Standard 3 issued under the Companies (Accounting Standards) Rules, 2006 and as required by the Securities and Exchange Board of India.

5. Revenue Recognition

(a) Sales

Revenue from sale of goods is recognized:

When all the significant risks and rewards of ownership are transferred to the buyer and the seller retains no effective control of the goods transfixed to a decree usually associated with ownership and

- No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

(b) Interest

interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable

6. Fixed Assets

Fixed assets are carried at cost less accumulated depreciation. Cost of fixed assets comprises its purchase price arid any attributable expenditure (both direct and indirect) for bringing an asset to its working condition for its intended use.

7. Depreciation and amortization

Depreciation on all assets has been provided on SLM basis in accordance with and in the manner specified in Schedule -XIV of Companies Act, 1956.

8. Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for i impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

9. Inventories

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of inventory is computed as under:

- In case of raw materials at FIFO plus direct expenses.

- In case of work in progress at raw material cost plus conversion costs depending upon the stage of completion.

- In case of finished goods at raw material cost plus conversion costs, packing cost and other overheads incurred to bring the goods to their present location and condition.

10. Employee Benefits

(a) Short term employee benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

(b) Post-employment benefits: Employee Provident Fund

The eligible employees of the Company are entitled to receive post employment benefits in respect of provident fund, in which both the employees and the Company make monthly contributions at a specified percentage of the employees' eligible salary.

11. Borrowing costs "

Borrowing cost includes amortization of ancillary cost related to borrowings and foreign exchange to the extent they regarded as adjustment to interest cost. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets till such time that the asset is ready for its intended use or sale . A qualifying asset is one that necessarily takes substantial period of time to get ready for the intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

12. Earnings per share

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding during the period.

13. Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of an outflow of resources embodying the economic benefit is remote.

14. Taxation "

Tax expense comprises of current and deferred tax. Current tax is measured at the amount expected to be paid in accordance with the Income-tax Act, 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rate and tax laws enacted or substantially enacted at the balance sheet date.


Mar 31, 2013

1 Corporate information

The company is engaged in Hi tech steer fabrication having its manufacturing facility at plot No,216-218 Industrial area mandideep, Dist. Raisen and Plot No.K-20-22, Industrial Area, Malanpur , Dist- Bhind and plot No.69 Industrial area mandideep, Dist Raisen, M.P.

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention . The accounting policies adopted in the preparation of

2.2 Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in file reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that tire estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and tire estimates are recognized in the periods in which the results are known / materialize.

2.3 Cash Flow Statement

Cash Flow statement has been prepared in accordance with tire indirect method prescribed in Accounting standard 3 issued under the Companies (Accounting Standards) Rules, 2006 and as required by the Securities and Exchange Board of India,

2.4 Inventories

Inventories are valued at the lower of cost on FIFO and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving

2.5 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances

2.6 Depreciation and amortization

Depreciation on fixed assets has been provided has been provided on Straight Line method (SLM) at the rates prescribed and in the manner provided in schedule "XIV" of The Companies Act, 1956. No depreciation has been charged on the assets sold during the year, if any.

2.7 Impairment of Assets

The carrying values of assess / cash generating units at each Balance Sheet date are reviewed for impairment, if any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

2.8 Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

(b) Monetary items denominated in foreign currencies at the yearend are restated at the yearend rates. In case of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

(c) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where me

2.9 Sale of goods

Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty , sales tax and value added tax.

2.10 Other income

Other income includes interest received on Bank deposits and net off of accounts written off during the year

2.11 Tangible fixed asset;;

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes incidental expenses incurred and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

2.12 Employee benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits.

2.13 Defined contribution plans

The Company's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made,

2.14 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as mart of the cost of such assets, A qualifying asset is one that necessarily takes substantial period of time to get ready for the intended use. All other borrowing costs are charged to profit and loss account.

2.15 Earnings per share

Basic earnings per share basic and diluted is computed by dividing tire profit / (loss) after tax by the weighted average number of equity shares outstanding during the year.

2.16 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.

2.17 Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and ii is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of an outflow of resources embodying the economic benefit is remote.


Mar 31, 2012

A) BASIS OF PRESENTATION:

The accounts have been prepared using historical cost convention and on the basis of a going concern with revenues recognized and expenses accounted on accrual including for committed obligations. Insurance's and other claims are accounted as and when admitted by the appropriate authorities. Where changes in presentation are made, comparative figures for the previous year are regrouped accordingly.

b) FIXED ASSETS:

i) Capitalized at acquisition cost including directly attributable

cost such as freight, insurance and specific installation charges for bringing the assets to its working condition.

ii) Expenditure relating to existing fixed assets incurred subsequently are added to the cost where they increase performance/life as assessed earlier.

c) INVENTORIES:

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

providing for obsolescence and damages.

i) In the case of raw material - At cost. The cost represents

purchase price and other costs incurred for bringing inventories up their present location In the case of work in progress: At cost which represents cost of raw material added to cost of conversation such as direct labor, direct expenses and production overheads (proportionately as to the stage of completion) which are specifically attributable to the units of production.

ii) In the case of Finished Goods - At net realizable value.

iii) In the case of scrap - At net realizable value.

d) FOREIGN CURRENCY TRANSACTION:

Foreign Travel Expenses NIL

e) EXCISE DUTY:-

Excise duty liability accruing on manufacture is accounted for as and when the liability for payment arises under die Central Excise and Salt Act 1944. Duty on finished goods lying in the factory premises in the bonded warehouse as on the last date of accounting year is not accrued.

f) SALES:-

Sales represents invoice value of goods (net) includes price variation and excise duty and does not includes freight, sales tax and transit insurance charges.

g) DEPRECIATION

Depreciation is provided on the fixed assets on straight line method at the rates and in the manner specified in schedule XIV of companies act, 1956 as per circular no. 14/93 dated 20.12.1993 issued by Ministry of Law and Department of Company Affairs and recommended by Institute of Chartered Accountants of India contained in its guidance notes on the "Accounting for Depreciation in Companies" and in the case where aggregate actual cost of individual item of P&M costing Rs. 5000/- or less constitutes more than 10% of the total actual cost of plant & machinery, rates of depreciation applicable to such items is the same as for general plant & machinery as per circular no. F/1/12/92-CLV issued by ministry of law and department of company affairs.

h) CONTINGENCIES AND EVENTS OCCURING AFTER THE BALANCE SHEET:

Accounting for contingencies (gains & losses) arising out of contractual obligations are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of the adoption of the accounts where material.


Mar 31, 2011

1 Corporate information

The company is engaged in Hitech steel fabrication having its manufacturing facility at plot No.216-218 Industrial area mandideep, Dist.Raisen and Plot No,K-2Q-??, Industrial Area, Malanpur , Dist- Bhind and plot No.69 Industrial area mandideep, Dist Raisen, M.P.

2.1 Basis of accounting and preparation Of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Capacities Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention . The accounting policies adopted in the

2.2 Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

2.3 Inventories

Inventories are valued at the lower of cost on FIFO and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octopi and other levies, transit insurance and receiving

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term haleness

2.5 Depreciation and amortization

Depreciation on fixed assets has been provided has been provided on Straight Line method (SLM) at the rates prescribed and in the manner provided in schedule "XIV" of The Companies Act, 1956. No depreciation has been charged on the assets sold during the year, if any.

2.6 Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date arc reviewed for impairment. If any indication of impairment exists, the recoverable auditor of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalue lasses.

2.7 Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates tire actual rate at the date of the transaction.

(b) Monetary items denominated in foreign currencies at the yearend are restated at the yearend rate? In raze of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the late of the contract.

(c) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which rasp ropy are adjusted to the carrying cost of such assets.

2.8 Sale of goods

Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty, sales tax and value added tax.

2.9 Other income

Oder income includes inters received on Bank deposes .

2.10 Tangible fixed assets

Fixed assets are carried if cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes incidental expenses incurred and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of tilt relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results m an increase in the future benefits from such asset beyond its previously assessed standard of performance.

2.11 employees benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits.

2.12 Defined contribution plans

The Company's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall Hue based on the amount of contribution required to be made,

2.13 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for the intended use. All other borrowing costs are charged

2.14 Earnings per share

Basic earnings per share basic and diluted is computer! by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year.

2.15 Taxes on income

Oin-pnt 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.

2.17 Provisions and contingencies

A provision is recognized when the Company has a present Obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of an outflow of resources embodying the economic benefit is remote.

Contingent liabilities provided for in respect of letter of credits/bank guarantees FDRs: a Bank guarantee outstanding: Rs. 3,93,45500.00

Estimated amounts of contracts remaining to be executed on capital account and nut provided fur (net advances) Nil Letter of Credit outstanding: Rs. Nil (Previous year Nil)

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