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Accounting Policies of Gujarat Credit Corporation Ltd. Company

Mar 31, 2014

[01] Accounting Policies

1. The financial statements are prepared under historical cost convention on the basis of "Accrual Concept".


A) Fixed Assets are stated at their cost of acquisition less accumulated depreciation.

B) Depreciation on additional/deletion to the fixed assets is provided on "Written Down Value Method" at the revised rates specified in schedule XIV to the Companies Act, 1956 on pro-rata basis from the month from which each such asset is put to use.

3. INVESTMENTS:- The investments are stated at cost.

4. STOCK-IN-TRADE:- Stock-in-trade is being valued at cost.


Company recognizes revenue in respect of interest income on accrual basis. The revenue in respect of other income is recognizes when no significant uncertainty as to its determination on reliability exists.

6. PROVISION OF TAXATION:- Provisions for taxation have been made of Rs. 70,000.

Mar 31, 2010

(A) Basis of Preparation of Financial Statements:

i) The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provision of the companies act, 1956 as adopted consistently by the company.

ii) All Income and Expenditure items having a material bearing on the financial statement are recognized on accrual basis.

(B) Investments:

Investments are valued at their acquisition cost.

(C) Fixed Assets:

The fixed assets are stated at cost less accumulated depreciation.

(D) Depreciation:

a) Depreciation on fixed assets owned by the company for own use has been provided on straight line method in accordance with the rates prescribed under schedule XIV to the Companies act,1956.

b) Deprecation on fixed assets owned by the company but given on lease to respective clients of the company, is charged over the primary lease period so that the 100% cost of such assets is charged to depreciation during the said period.

(E) Employee Benefits.

(a) Short Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short-term employee benefits. The benefits like salaries, wages, short term compensated absence etc. and and the expected cost of bonus are recognized in the period in which the employee renders the related service.

(b) Post-Employment Benefits

i) Defined Contribution Plans: The Company has no such plans because number of employees is less than the prescribed limit as per Provident Fund Act. Similarly as the case with Employees State Insurance Act.

ii) Defined Benefits Plans: The company has a policy to pay the gratuity as and when the employee retires from the service

(F) Stock in Trade

Although the market value is much below the cost, stock in trade is valued at cost.


1. The company follows accounting policy of income from construction contracts on percentage completion method basis.

2. The company has followed the reserve Bank of Indias Guidelines applicable to the Non Banking Financial Companies in respect of Prudential Norms for income recognition, assets classification and capital adequacy.

(G) Taxes on Income:

Deferred Tax is recognized on timing difference, being the difference between taxable income and accounting income that originate in one period and are reversible in one or more subsequent period.

(H) Earning Per Share:

The company reports basic and diluted earnings per share in accordance with Accounting Standard (AS) 20 – Earning per Share issued by the Institute of Chartered Accountants of India. Basic Earning per share are computed by dividing the net profit or loss for the year by the weighted average number of equity share outstanding during the year. Diluted earnings per share is computed by dividing the net profit or loss for the year by the weighted average number of Equity Shares outstanding during the year as adjusted for the effects of all dilative potential equity share, except where the results are anti-dilative.

(I) Related Party Disclosures:

(Related Party Disclosure under Accounting Standard 18) (i). The list of related parties as identified by the Management are as under:

a. Associates GCCL Construction & Realities Ltd,

GCCL Infrastructure & Projects Ltd,

GCCL Securities Ltd, GCCL Housing Finance Ltd.

b. Joint ventures None

c. Subsidiaries None

d. Individuals owing, directly Shri Bahubali S. Shah or indirectly, an interest in the Shri Amam S. Shah voting power of the reporting Shri Shreyansh S. Shah enterprise that gives them control Shri Smrutiben S.Shah or Significant influence over the Shri Binoti A. Shah enterprise, & relatives of any such individuals.

e. Key Management Personnel & None relatives of Key Management Personnel

f. Enterprise over which any person As mentioned in [a] above &

described in [d] or [e] is able to Aaspas Investment Pvt.Ltd

exercise significant influence. Indian Chronical Ltd.

This exercise significant influence. includes Lok Prakashan Ltd.

enterprises owned by Directors or major Zora Traders Ltd.

shareholders of the reporting enterprise that Lipi Mercantile Ltd.

have a member of key Management Personnel in common with the reporting enterprise.

(ii) The Company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is required to be made & no amounts have been written off or written back during the year in respect of debts due from or to related parties. There are no other related parties where control exists that need to be disclosed.

(J) Segment Reporting:

During the year under review, the Company was engaged in construction activities only. It earned its income in the form of development charges from construction business. Since the company is engaged in single segment, segment reporting is not required.

(K) Impairment of Assets:

The company assesses at each Balance sheet date whether there is any indication that asset may be impaired. If any such indication exists, the company estimates their recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is adjusted to the amount of recoverable amount.