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Accounting Policies of Gujarat Foils Ltd. Company

Mar 31, 2014

I. Accounting Convention

The Financial Statements have been prepared in accordance with the generally accepted accounting principles applicable in India, comply with the applicable Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006, issued by the Central Government in exercise of the power conferred under sub – section (1) (a) of section 642 of the Companies Act, 1956 and relevant presentational requirements and are based on historical cost convention. In preparing these financial statements, accrual basis of accounting has been followed unless otherwise stated.

II. Use of Estimates

The preparation of financial statements in conformity with generally Accepted Accounting principles require estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and differences between actual results and estimates are recognized in the periods in which the results are known/ materialize.

III. Inventories :

- Raw Materials are valued at cost on FIFO basis

- Stores and Spares are valued at cost on FIFO basis.

- Finished Goods and Work-in-Process are valued at cost which includes material cost, cost of conversion and other costs or realisable value whichever is lower.

- Scrap is valued at estimated realisable value.

IV. Fixed Assets

- Fixed Assets are stated at original cost (net of CENVAT wherever applicable) less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses related to acquisition, installation and commissioning.

V. Depreciation

i) Depreciation has been charged on Straight Line Method basis at the rates and in the manner prescribed under schedule -

XIV of the Companies Act, 1956.

ii) Depreciation is provided on pro-rata basis from the date the asset is put to use.

VI. Revenue Recognition (i) Sales

a) Sales are recognized when the products leave the premises of the company.

b) Sales are net of Excise Duty, VAT and CST.

(ii) Other operations

Time is essence when Interest Income is accounted for.

VII. Retirement benefits

Retirement benefits have been recognized as per actuarial valuation.

VIII. Income Tax

(i) Current tax is measured at the amount expected to be paid to the taxation authorities using the applicable tax rates and tax

laws.

(ii) Deferred tax asset and liability is measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax asset and liability is recognized for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year.

IX. Provisions

Provision is recognized when an enterprise 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 and in respect of which a reliable estimate can be made. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.

X. Impairment of Assets

At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. The impairment loss as determined above is expensed off. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

XI. Foreign Currency Transaction

All incomes or expenditures in foreign currency are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.

XII. Contingent Liability

Contingent Liabilities are determined on the basis of available information and are disclosed by way of note, if any.

XIII. Segment Reporting

The Board of Directors of the company is of the opinion that there are no separate reportable segments as per AS-17 as the entire operations of the company is related to one reportable segment comprising of Aluminum Rolled Products and Foils.


Mar 31, 2012

I. Accounting Convention

The Financial Statements have been prepared in accordance with the generally accepted accounting principles applicable in India, comply with the applicable Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006, issued by the Central Government in exercise of the power conferred under sub-section (1) (a) of Section 642 of the Com- panies Act, 1956 and relevant presentational requirements and are based on historical cost convention. In preparing these financial statements, accrual basis of accounting has been followed unless otherwise stated.

II. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles require estimates and as- sumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and differences between actual results and estimates are recognized in the periods in which the results are known/ materialize.

III. Inventories :

- Raw Materials are valued at cost on FIFO basis

- Stores and Spares are valued at cost on FIFO basis.

- Finished Goods and Work-in-Process are valued at cost which includes material cost, cost of conversion and other costs or realisable value whichever is lower.

- Scrap is valued at estimated realisable value.

IV. Fixed Assets

Fixed assets are stated at original cost (net of CENVAT wherever applicable) less accumulated depreciation. Cost of acquisi- tion is inclusive of freight, duties, taxes and other incidental expenses related to acquisition, installation and commissioning

V. Depreciation

i) Depreciation has been charged on Straight Line Method basis at the rates and in the manner prescribed under Schedule -XIV of the Companies Act, 1956.

ii) Depreciation is provided on pro-rata basis from the date the asset is put to use.

VI. Revenue Recognition

i) Sales

a) Sales is recognized when the products leave the premises of the Company.

b) Sales is net of Excise Duty, VAT and CST.

ii) Other operations

Time is essence when Interest Income is accounted for.

VII. Retirement benefits

Retirement benefits have been recognized as per actuarial valuation

VIII. Income Tax

i) Current tax is measured at the amount expected to be paid to the taxation authorities using the applicable tax rates and tax laws.

ii) Deferred tax asset and liability is measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax asset and liability is recognized for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year.

IX. Provisions

Provision is recognised when an enterprise 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 and in respect of which a reliable estimate can be made. Provi- sions are determined based on management estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

X. Impairment of Assets

At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. The impairment loss as determined above is expensed off. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

XI. Foreign Currency Transaction

All incomes or expenditures in foreign currency, are recorded at the rates of exchange prevailing on the dates when the rel- evant transactions take place.

XII. Contingent Liability

Contingent liabilities are determined on the basis of available information and are disclosed by way of note.

XIII. Segment Reporting

The Board of Directors of the Company is of the opinion that there are no separate reportable segments as per AS-17 as the entire operations of the Company is related to onereportable segment comprising of Aluminum Rolled Products and Foils.


Mar 31, 2010

1. Accounting Convention

The Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) applicable in India, comply with the applicable Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006, issued by the Central Government in exercise of the power conferred under sub - section (1) (a) of section 642 of the Companies Act, 1956 and relevant presentational requirements and are based on historical cost convention. In preparing these financial statements, accrual basis of accounting has been followed unless otherwise stated.

2. Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) require estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and differences between actual results and estimates are recognized in the periods in which the results are known/ materialize.

3. Inventories :

- Raw Materials are valued at cost on FIFO basis

- Stores and Spares are valued at cost on FIFO basis.

- 0Finished Goods and Work-in-Progress are valued at cost which includes material cost, cost of conversion and other costs or realisable value whichever is lower.

Scrap is valued at estimated realisable value.

4. Fixed Assets

Fixed Assets are stated at original cost (net of MODVAT wherever applicable) less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses related to acquisition, installation and commissioning.

5. Depreciation

i) Depreciation has been charged on Straight Line Method basis at the rates and in the manner prescribed under schedule -XIV to the Companies Act, 1956.

ii) Depreciation is provided on pro-rata basis from the date of additions.

6. Revenue Recognition (i) Sales

a) Sales is recognized when the products leave the premises of the company.

b) Sales does not include excise duty and VAT and Central Sales Tax but sales return and trade discounts are deducted.

(ii) Other operation

Time is essence when Interest Income is accounted for.

Interest on calls in arrear is accounted when same is realized.

7. Investments

In case of Fixed Deposit with bank, accrued interest has been taken into consideration.

8. Retirement benefits

Retirement benefits have been recognized as per actuarial valuation.

9. Earning per Share

In determining basic earning per share, the company considers the net profit attributable to equity shareholders. The number of shares used in computing basic earning per share is the weighted average number of share outstanding during the period. Average outstanding equity shares are taken for computation of Diluted Earnings per Share (DEPS).

10. Income Taxes

(i) Current tax is measured at the amount expected to be paid to the taxation authorities using the applicable tax rates and tax laws.

(ii) Deferred tax asset and liability are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax asset and liability are recognized for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year.

11. Provisions

Provision is recognised when an enterprise 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 and in respect of which a reliable estimate can be made. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.

12. Impairment of Assets

At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. The impairment loss as determined above is expensed off. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

13. Foreign Currency Transaction

All incomes or expenditures in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.

14. Contingent Liability

Contingent Liabilities are determined on the basis of available information and are disclosed by way of note.

15. Segment Reporting

The Board of Directors of the company are of the opinion that there are no separate reportable segments as per AS-17 as the entire operations of the company is related to one reportable segment comprising of Aluminium Rolled Products and Foils.


Mar 31, 2009

Basis of Accounting : The accompanying financial statements have been prepared under the historical cost conventions, in accordance with Indian generally accepted accounting principles and the provisions of the Companies Act, 1956.

Use of Estimates : The preparation of financial statements in conformity with generally Accepted Accounting principles require estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses dunng the reporting period. Actual results could differ from these estimates and differences between actual results and estimates are recognized in the periods in which the results are known/ materialize.

(A) SYSTEM OF ACCOUNTING

The company has adopted the accrual basis of accounting in the preparation of the books of account.

(B) REVENUE RECOGNITION

(i) Sales

a) Sales is recognized when the products leaves the premises of company.

b) Sales do not include excise duty and VAT and Central Sales Tax but sales return and trade discounts are deducted.

(ii) Other operation

Time is essence when Interest Income is accounted for. Interest on call in arrears is accounted when same is realized.

(C) FIXED ASSETS AND DEPRECIATION

Fixed Assets are stated at cost (net of MODVAT wherever applicable) less depreciation.

Depreciation on fixed assets is provided on Straight Line Method as per rates specified in schedule XIV to the Companies Act 1956.

(D) IMPAIRMENTS

The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any indication exists, the assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

(E) INVENTORIES

Raw Materials are valued at cost on FIFO basis

Stores and Spares are valued at cost on FIFO basis.

Finished Goods and Work-in-Progress are valued at cost which includes material cost, cost of conversion and other costs or realization value whichever is lower.

Scrap is valued at estimated realisable value,

(F) INVESTMENT

In case of Fixed Deposit of bank, accrued interest has also been taken into consideration.

(G) RETIREMENT BENEFITS : Retirement benefits have been recognized as per actuarial valuation.

(H) CONTINGENT LIABILITY

Contingent Liabilities are determined on the basis of available information and are disclosed by way of note.

(I) INCOME TAXES

(i) Current tax is measured at the amount expected to be paid to the taxation authorities using the applicable tax rates and tax laws.

(ii) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognized for. the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change.

(J) FOREIGN CURRENCY TRANSACTION

All incomes or expenditure in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.

(K) SEGMENT REPORTING

The Board of Directors of the company are of the opinion that there are no separate reportable segments as per AS-17 as the entire operations of the company is related to one reportable segment comprising of Aluminum Rolled Products and Foils.

 
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