Accounting Policies of GBL Industries Ltd. Company

Mar 31, 2017

1. Basis of Accounting & Revenue Recognition:

The financial statements have been prepared in accordance with the recognition and measurement principles laid down in the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other accounting principles generally accepted in India.

2. Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include computations of percentage of completion which requires the Company to estimate the efforts or costs expended to date as a proportion of total efforts or costs to be expended, provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post sales customer support and the useful lives of fixed tangible assets and intangible assets.

Accounting estimates could change from period to period. Actual results could differ from these estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

3. Fixed assets:

Fixed Assets are stated at cost of acquisition and inclusive of freight, taxes and incidental expenses related to acquisition of the said fixed assets.

4. Depreciation:

Depreciation on tangible assets is provided on the straight line method as per Schedule II of the Companies Act, 2013 over the useful lives of assets estimated by the Management.

5. Inventories:

Inventories are valued at the lower of the cost & estimated net realizable value.

6. Retirement benefits:

As per the Company’s management, the Gratuity and Provident Fund are not provided in the books as the same is not applicable.

7. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimate, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not,

require an outflow of resources. Where there is a possible obligations or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

8. Earnings Per Share:

Basic and diluted earnings per share are computed in accordance with Accounting Standard-20. Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive.

9. Cash Flow Statement:

Cash flow are reported using indirect method, whereby profit before tax is adjusted for the effects of the transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flow from operating, investing and financing activities of the Company is segregated.

10. Miscellaneous Exp. To the extent not written off:

During the year, the Company had not written off Listing Fee applied for listing of its equity shares in BSE Limited.

11. Taxes on Income :

a) Current Tax

The current charge for income tax is calculated in accordance with the relevant provisions as prescribed under the Income Tax Act, 1961.

b) Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date.

12. Micro, Small and Medium Enterprises Development Act, 2006:

Based on the information available with the company in respect of MSME (as defined in the Micro Small & Medium Enterprise Development Act, 2006) there are no delays in payment of dues to such enterprises during the year.

As per information available with the Company about suppliers whether they are covered under Micro, Small and Medium Enterprises Act, 2006. As on date, the Company has not received confirmation from any suppliers who have registered under the “Micro, Small and Medium Enterprise Development Act, 2006” and hence no disclosure has been made under the said Act.

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Mar 31, 2015

1. Basis of Accounting & Revenue Recognition:

a) 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 Section 211 (3C) of the Companies Act, 1956 ("the 1956 Act") (which continues to be applicable in respect of Section 133 of the Companies Act, 2013("the 2013Act") in terms of General Circular 15/2013 Dated September 13, 2013 Act, as applicable.

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

2. Fixed assets:

Fixed Assets are stated at cost of acquisition and inclusive of freight, taxes and incidental expenses related to acquisition of the said fixed assets.

3. Depreciation:

Depreciation on tangible assets is provided on the straight line method as per Schedule II of the Companies Act, 2013 over the useful lives of assets estimated by the Management.

4. Inventories:

Inventories are valued at the lower of the cost & estimated net realizable value.

5. Retirement benefits:

As per the Company's management, the Gratuity and Provident Fund are not provided in the books as the same is not applicable.

6. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimate, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligations or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

7. Earnings Per Share:

Basic and diluted earnings per share are computed in accordance with Accounting Standard-20. Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti- dilutive.

8. Cash Flow Statement:

Cash flow are reported using indirect method, whereby profit before tax is adjusted for the effects of the transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flow from operating, investing and financing activities of the Company is segregated.

9. Miscellaneous Exp. To the extent not written off:

During the year, the Company had not written off Listing Fee applied for listing of its equity shares in BSE Limited.

10. Taxes on Income :

a) Current Tax

The current charge for income tax is calculated in accordance with the relevant provisions as prescribed under the Income Tax Act, 1961.

b) Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date.

11. Micro, Small and Medium Enterprises Development Act, 2006:

Based on the information available with the company in respect of MSME (as defined in the Micro Small & Medium Enterprise Development Act, 2006) there are no delays in payment of dues to such enterprises during the year.

As per information available with the Company about suppliers whether they are covered under Micro, Small and Medium Enterprises Act, 2006. As on date, the Company has not received confirmation from any suppliers who have registered under the ''Micro, Small and Medium Enterprise Development Act, 2006" and hence no disclosure has been made under the said Act.

12. Use of Estimates:

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses for the year. Actual results could differ from these estimates. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized. Any revision to an accounting estimate is recognized prospectively in the year of revision.

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Mar 31, 2014

Basis of Preparation of Financial Statement

The financial statements have been prepared under the historical cost convention method in accordance with the generally accepted accounting principles and the provisions of the Companies act 1956. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except in the case of significant uncertainty relating to income.

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses for the year. Actual results could differ from these estimates. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized. Any revision to an accounting estimate is recognized prospectively in the year of revision.

Revenue Recognition

Income and expenditure are recognized and accounted on accrual basis, except in case of significant uncertainties.

Fixed Assets and Depreciation

Fixed assets are stated at their cost on acquisition less accumulated depreciation. Cost of acquisition is inclusive of freight, duties and other directly attributable cost incurred to bring the assets to their working condition for use.

Depreciation on Fixed Assets is provided on Written Down Value method in accordance with the provisions of the Companies Act, 1956 in the manner and at the rates specified in the Schedule XIV to the said Act, on pro-rata basis.

Miscellaneous Expenditure

The Company has written off the expenditure of increase in authorised share capital in the current year itself.

Investment NIL

Inventories

NIL, However the closing stock of are valued at Cost or Market Value whichever is lower on FIFO basis.

Taxes on Income

a) Current Tax

The current charge for income tax is calculated in accordance with the relevant provisions as prescribed under the Income Tax Act, 1961.

b) Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date.

Segment Reporting

The Company deals in only one reportable segment and hence requirement of Accounting Standard 17 "Segment Reporting" issued by ICAI is not applicable.

Micro, Small and Medium Enterprises Development Act, 2006

Based on the information available with the company in respect of MSME (as defined in the Micro Small & Medium Enterprise Development Act, 2006) there are no delays in payment of dues to such enterprises during the year.

As per information available with the Company about suppliers whether they are covered under Micro, Small and Medium Enterprises Act, 2006. As on date, the Company has not received confirmation from any suppliers who have registered under the "Micro, Small and Medium Enterprise Development Act, 2006" and hence no disclosure has been made under the said Act.

Provision, Contingent Liabilities and Contingent Assets:-

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized in the books of accounts and disclosed as notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2013

1.1 Accounting Convention

Accounts are prepared on the basis of historical cost convension. All income and expenses are generally accounted for on accural basis.

2.2 Tangible fixed assets

Capitalised at acquisition cost including directly attributable cost such as freight, insurance and specific installation charges for bringing the assets to its working condition for use.

2.3 Depreciation and amortisation

Depreciation has been provided on the written down value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

2.4 Debtors

Debtors are stated at book value after making provisions for doubtful debts.

2.5 Investment

There is no investment at the end of year.

2.6 Advances

Advances are stated at book value. No provision for doubtful amount is made during the year.

2.7 Basis of accounting

a Revenues / Income and costs / expenditure are generally accounted on accural as they are earned or incurred and to the extent realisable and payable with reasonable certainity.

b The company has given advances amounting Rs. 5000000 ( and interest due thereon) The company is neither receiving principal amount nor any interest thereon. These advances have turned doubtful of recovery but no provision made in the accounts for the same. Since the principal amount has not been repaid, interest thereon has not been accounted as per prudent account policy and RBI Guidelines.

c Director Salary includes Rs.NIL/- paid to J K Doshi (Previous year Rs. 120000) since no commission is payable to him working of net profit as per section 349 of the Companies Act, 1956 is not given.

2.8 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 (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.9 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.10 Earnings per share

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

2.11 Taxes on income

In accordance with AS - 22, Accounting for tax on Income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainity that the assets can be realised in future.

Notes:

In compliance with Accounting Standard 22 relating to "Accounting for Taxes on Income" as notified under the Companies (Accounting Standards) Rules, 2006, C7 has been debited to the Statement of Profit & Loss towards deferred tax(net) on account of timing differences.

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Mar 31, 2012

1.1 Accounting Convention

Accounts are prepared on the basis of historical cost convension. All income and expenses are generally accounted for on accural basis.

2.2 Tangible fixed assets

Capitalised at acquisition cost including directly attributable cost such as freight, insurance and specific installation charges for bringing the assets to its working condition for use.

2.3 Depreciation and amortisation

Depreciation has been provided on the written down value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

2.4 Debtors

Debtors are stated at book value after making provisions for doubtful debts.

2.5 Investment

There is no investment at the end of year.

2.6 Advances

Advances are stated at book value. No provision for doubtful amount is made during the year.

2.7 Basis of accounting

a Revenues / Income and costs / expenditure are generally accounted on accural as they are earned or incurred and to the extent realisable and payable with reasonable certainity.

b The company has given advances amounting Rs. 5000000 ( and interest due thereon) The company is neither receiving principal amount nor any interest thereon. These advances have turned doubtful of recovery but no provision made in the accounts for the same. Since the principal amount has not been repaid, interest thereon has not been accounted as per prudent account policy and RBI Guidelines.

c Director Salary includes Rs. NIL/- paid to Director Smt. Jyoti D Shah ( previous year Rs.120000), Rs.120000/- paid to J K Doshi (Previous year Rs. 96000) and Rs. NIL/- paid to Parimal S. Patwa (previous year Rs. 72000) since no commission is payable to him working of net profit as per section 349 of the Companies Act, 1956 is not given.

2.8 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 (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.9 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.10 Earnings per share

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

2.11 Taxes on income

In accordance with AS - 22, Accounting for tax on Income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainity that the assets can be realised in future.

In compliance with Accounting Standard 22 relating to "Accounting for Taxes on Income" as notified under the Companies (Accounting Standards) Rules, 2006, 2007 ( Previous Year 2007 ) has been debited to the Statement of Profit & Loss towards deferred tax(net) on account of timimg differences.

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Mar 31, 2011

(i) Accounting Convensions :- Accounts are prepared on the basis of historical cost convension. All income and expenses are generally accounted for on accural basis.

(ii) Fixed Assets and Depreciation :- a) Capitalised at acquisition cost including directly attributable cost such as freight, insurance and specific installation charges for bringing the assets to its working condition for use.

b) Company provides for depreciation on the fixed assets at the rates specified in Schedule XIV of the Company''s Act, 1956, on the written down value method.

(iii) DEBTORS :

Debtors asre stated at book value after making provisions for doubtful debts.

(iv) INVESTMENT :

There is no investment at the end of year.

(v) All the assets, liabilities, and revenues are pertaining to investment segment only and not utilised for earning another segment revenues and therefore separate reporting under AS-17 is not done.

(vi) No provision is made as required by AS 28 as necessary valuation of property is not available and therefore AS 28 is not followed.

(vii) No provision has been made for Gratuity as the actuarial liability is not determined as well as other provision required to be made as per AS 15 will be accounted as and when paid.

(viii) ADVANCES :

Advances are stated at book value. No provision for doubtful amount is made during the year.

(viii) DEFERRED TAX :

In accordance with Accounting Standards 22 - Accounting for tax on income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future. The break up of net deferred tax assets as at 31-3-2011 is as under :

Deferred tax Deferred tax

Assets Liability

Timing differences as on account of difference

between WDV as per books and WDV under 115 ----

income tax act, 1961.

(ix) BASIS OF ACCOUNTING :- 1 Revenues / Income and costs / expenditures are generally accounted on accural as they are earned or incurred and to the extent realisable and payable with reasonable certainity.

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Mar 31, 2010

(i) Accounting Convensions :- Accounts are prepared on the basis of historical cost convension. All income and expenses are generally accounted for on accural basis.

(ii) Fixed Assets and Depreciation :- a) Capitalised at acquisition cost including directly attributable cost such as freight, insurance and specific installation charges for bringing the assets to its working condition for use.

b) Company provides for depreciation on the fixed assets at the rates specified in Schedule XIV of the Company''s Act, 1956, on the written down value method.

(iii) INVESTMENT :

Investments are stated at cost . Provision for dimunation in value of long term investment of Rs. 1816869/- is made in the financial year 2007-2008.

(iv) All the assets, liabilities, and revenues are pertaining to investment segment only and not utilised for earning another segment revenues and therefore separate reporting under AS-17 is not done.

(v) No provision is made as required by AS 28 as necessary valuation of property is not available and therefore AS 28 is not followed.

(vi) No provision has been made for Gratuity as the actuarial liability is not determined as well as other provision required to be made as per AS 15. Will be accounted as and when paid.

(vii) ADVANCES :

Advances are stated at book value. No provision for doubtful amount is made during the year.

(viii) DEFERRED TAX :

In accordance with Accounting Standards 22 - Accounting for tax on income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future. The break up of net deferred tax assets as at 31-3-2010 is as under :

Deferred tax Deferred tax

Assets Liability

Timing differences as on account of difference between WDV as per books and WDV under 122 income tax act, 1961.

(ix) BASIS OF ACCOUNTING :- 1 Revenues / Income and costs / expenditures are generally accounted on accural as they are earned or incurred and to the extent realisable and payable with reasonable certainity.

2 The company has given advances amounting Rs. 5000000 ( and interest due thereon) The company is neither receiving principal amount nor any interest thereon. These advances have turned doubtful of recovery but no provision made in the accounts for the same. Since the principal amount has not been repaid, interest thereon has not been accounted as per prudent account policy and RBI Guidelines.

8 Director Salary includes Rs. 15000/- paid to Director Shri Harish S. Shah ( previous year Rs. 36000 ) and Rs. 21000/- paid to Parimal S. Patwa (previous year Rs. NIL) since no commission is payable to him working of net profit as per section 349 of the Companies Act, 1956 is not given.