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Accounting Policies of Gujarat Metallic Coal & Coke Ltd. Company

Mar 31, 2015

I) Accounting Conventions

The financial statements are prepared under historical cost conventions and as a going concern basis following the accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles (GAAP) in India and in compliance with the provisions of the Companies Act, 2013.

ii) Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of revenues and expenses during the reporting period and the reported amount of assets and liabilities and disclosure of contingent liabilities as on the date of the financial statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

iii) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. The cost of fixed assets comprises its purchase price, cost of construction, cost of borrowings and other cost directly attributable to bring the assets at its working conditions and location for its intended use.

iv) Depreciation

Depreciation on fixed assets is provided on useful life of the assets and in the manner as prescribed in Part-C of Schedule II of the companies Act, 2013.

v) Investments

Long term Investments are stated at cost. Provision is made when diminution in the value of such investments is considered permanent in nature. Current Investments are valued at lower of cost and market/fair value.

vi) Inventories

Inventories are valued at cost or net realizable value, whichever is lower. Cost includes cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and conditions. Cost is determined on FIFO basis. Any shortage / excess found on physical verification of inventories are adjusted in the accounts as found appropriate.

vii) Revenue Recognition

Revenue is recognized to the extent, it is probable that the economic benefits will flow to the Company and it can be reliably measured. Dividend Income is recognized when right to receive the payment is established. Interest Income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

viii) Foreign Exchange Transactions

Transactions involving foreign exchange are normally recorded at the exchange rates prevailing on the date of the transaction. Exchange differences arising on settlement of transactions or on reporting monetary items of the Company at the rate different from those at which they were initially recorded during the period, or reported in previous financial statement, are recognized as income or expenses in the period in which they arise except in case where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

ix) Taxation

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.Deferred Tax resulting from timing difference between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred Tax asset is recognized only if there is a reasonable/virtual certainty that the same will be realized and are reviewed for the appropriateness of its carrying values at each balance sheet date.

Tax on Distributed Profit is provided in accordance with the provision of Section 115-O of the Income Tax Act, 1961 and guidance note on 'Accounting for Corporate Dividend Tax'.

x) Employee's short term & Post employment benefits

Employee benefits of short-term nature are recognized as expense as and when it accrues. Post employment benefits are recognized as expenses on accrual basis at year end.

xi) Amortisation

Preliminary and share/debenture issue expenses are amortized over the period of five years.

xii) Impairment of assets

At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to assess whether there is any indication of any asset being impaired. An asset is treated as impaired when the carrying value of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the period in which an asset is identified as impaired. The impairment loss, if any, in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

xiii) Earning per share (EPS)

The basic earning per share ("EPS") is computed by dividing the net profit after tax for the period by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earning per share, net profit after tax for the period and the weighted average number of shares outstanding during the period are adjusted with the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as at the beginning of the period, unless they have been issued at a later date.

xiv) Prior Period Adjustments, Extra-ordinary Items and Changes in Accounting Policies

Prior period adjustments, extraordinary items and changes in accounting policies, if any having material impact on the financial affairs of the Company is adequately disclosed.

xv) Provisions, Contingent Liabilities & Contingent Assets

Provision is made when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are not recognized but are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Sep 30, 2014

I) Accounting Conventions

The financial statements are prepared under historical cost conventions and as a going concern basis following the accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles (GAAP) in India and in compliance with the provisions of the Companies Act, 1956.

ii) Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of revenues and expenses during the reporting period and the reported amount of assets and liabilities and disclosure of contingent liabilities as on the date of the financial statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

iii) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. The cost of fixed assets comprises its purchase price, cost of construction, cost of borrowings and other cost directly attributable to bring the assets at its working conditions and location for its intended use.

iv) Depreciation

Depreciation on fixed assets is provided on straight-line method (SLM) at the rates and in the manner prescribed in Schedule XIV of the companies Act, 1956.

v) Investments

Long term Investments are stated at cost. Provision is made when diminution in the value of such investments is considered permanent in nature. Current Investments are valued at lower of cost and market/fair value.

vi) Inventories

Inventories are valued at cost or net realizable value, whichever is lower. Cost includes cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and conditions. Cost is determined on FIFO basis. Any shortage / surplus found on physical verification of inventories are adjusted in the accounts as found appropriate.

vii) Revenue Recognition

Revenue is recognized to the extent, it is probable that the economic benefits will flow to the Company and it can be reliably measured. Dividend Income is recognized when right to receive the payment is established. Interest Income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

viii) Foreign Exchange Transactions

Transactions involving foreign exchange are normally recorded at the exchange rates prevailing on the date of the transaction. Exchange differences arising on settlement of transactions or on reporting monetary items of the Company at the rate different from those at which they were initially recorded during the period, or reported in previous financial statement, are recognized as income or expenses in the period in which they arise except in case where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

ix) Taxation

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.Deferred Tax resulting from timing difference between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred Tax asset is recognized only if there is a reasonable/virtual certainty that the same will be realized and are reviewed for the appropriateness of its carrying values at each balance sheet date.

Tax on Distributed Profit is provided in accordance with the provision of Section 115-O of the Income Tax Act, 1961 and guidance note on ''Accounting for Corporate Dividend Tax’.

x) Employee’s short term & Post employement benefits

Employee benefits of short-term nature are recognized as expense as and when it accrues.Post employment benefits are recognized as expenses on accrual basis at year end as per actuarial confirmation.

xi) Amortisation

Preliminary and share/debenture issue expenses are amortized over the period of five years.

xii) Impairment of assets

At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to assess whether there is any indication of any asset being impaired. An asset is treated as impaired when the carrying value of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the period in which an asset is identified as impaired. The impairment loss, if any, in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

xiii) Earning per share (EPS)

The basic earning per share ("EPS") is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earning per share, net profit after tax for the period and the weighted average number of shares outstanding during the year are adjusted with the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as at the beginning of the year, unless they have been issued at a later date.

xiv) Prior Period Adjustments, Extra-ordinary Items and Changes in Accounting Policies Prior period adjustments, extraordinary items and changes in accounting policies, if any having material impact on the financial affairs of the Company is adequately disclosed.

xv) Provisions, Contingent Liabilities & Contingent Assets

Provision is made when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are not recognized but are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Sep 30, 2013

I) Accounting Conventions :

The financial statements are prepared under historical cost conventions and as a going concern basis following the accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles (GAAP) in India and in compliance with the provisions of the Companies Act, 1956.

ii) Use of Estimates :

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of revenues and expenses during the reporting period and the reported amount of assets and liabilities and disclosure of contingent liabilities as on the date of the financial statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

iii) Fixed Assets :

Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. The cost of fixed assets comprises its purchase price, cost of construction, cost of borrowings and other cost directly attributable to bring the assets at its working conditions and location for its intended use.

iv) Depreciation :

Depreciation on fixed assets is provided on straight-line method (SLM) at the rates and in the manner prescribed in Schedule XIV of the companies Act, 1956.

v) Investments :

Long term Investments are stated at cost. Provision is made when diminution in the value of such investments is considered permanent in nature. Current Investments are valued at lower of cost and market/fair value.

vi) Inventories :

Inventories are valued at cost or net realizable value, whichever is lower. Cost includes cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and conditions. Cost is determined on FIFO basis. Any shortage / surplus found on physical verification of inventories are adjusted in the accounts as found appropriate.

vii) Revenue Recognition :

Revenue is recognized to the extent, it is probable that the economic benefits will flow to the Company and it can be reliably measured. Dividend Income is recognized when right to receive the payment is established. Interest Income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

viii) Foreign Exchange Transactions :

Transactions involving foreign exchange are normally recorded at the exchange rates prevailing on the date of the transaction. Exchange differences arising on settlement of transactions or on reporting monetary items of the Company at the rate different from those at which they were initially recorded during the period, or reported in previous financial statement, are recognized as income or expenses in the period in which they arise except in case where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

ix) Taxation :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.Deferred Tax resulting from timing difference between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred Tax asset is recognized only if there is a reasonable/virtual certainty that the same will be realized and are reviewed for the appropriateness of its carrying values at each balance sheet date.

Tax on Distributed Profit is provided in accordance with the provision of Section 115-O of the Income Tax Act, 1961 and guidance note on ''Accounting for Corporate Dividend Tax''.

x) Employee''s short term & Post employement benefits :

Employee benefits of short-term nature are recognized as expense as and when it accrues.Post employment benefits are recognized as expenses on accrual basis at year end as per actuarial confirmation.

xi) Amortisation :

Preliminary and share/debenture issue expenses are amortized over the period of five years.

xii) Impairment of assets :

At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to assess whether there is any indication of any asset being impaired. An asset is treated as impaired when the carrying value of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the period in which an asset is identified as impaired. The impairment loss, if any, in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

xiii) Earning per share (EPS) :

The basic earning per share ("EPS") is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earning per share, net profit after tax for the period and the weighted average number of shares outstanding during the year are adjusted with the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as at the beginning of the year, unless they have been issued at a later date.

xiv) Prior Period Adjustments, Extra-ordinary Items and Changes in Accounting Policies :

Prior period adjustments, extraordinary items and changes in accounting policies, if any having material impact on the financial affairs of the Company is adequately disclosed.

xv) Provisions, Contingent Liabilities & Contingent Assets :

Provision is made when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are not recognized but are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2010

I) Accounting Conventions:

The financial statements are prepared under historical cost conventions and as a going concern basis following the accrual basis of accounting and in accordance with the generally accepted accounting principles (GAAP) in India and in compliance with the provisions of the Companies Act, 1956.

ii) Use of Estimates :

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities for the year under review and disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

iii) Fixed Assets :

Fixed assets are stated at cost. The cost of fixed assets comprises its purchase price.cost of construction, cost of borrowings and other cost directly attributable to bring the assets at its working conditions and location for its intended use.

iv) Depreciation:

Depreciation on fixed assets is provided on straight-line method (SLM) at the rates and in the manner prescribed in Schedule XIV of the companies Act, 1956.

v) Investments:

Long term Investments are stated at cost. Provision is made when diminution in the value of such investments is considered permanent in nature. Current Investments are valued at lower of cost and market/fair value.

vi) Inventories:

Inventories are valued at cost or net realizable value, whichever is lower. Cost includes cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and conditions. Cost is determined on FIFO basis. Any shortage / surplus found on physical verification of inventories are adjusted in the accounts as found appropriate.

vii) Revenue Recognition :

a. In respect of sales : When the significant risks and rewards of ownership of goods are transferred to customers.

b. In respect of service income : When the services are performed as per contract.

c. In respect of interest income : On time proportion basis taking into account the amount outstanding.

d. In respect of dividend income : When right to receive payment is established.

e. In respect of insurance claims : On Settlement of Claims.



viii) Foreign Exchange Transactions :

Transactions involving foreign exchange are normally recorded at the exchange rates prevailing on the date of the transactions. Exchange differences arising on settlement of transactions or on reporting monetary items of the Company at the rate different from those at which they were initially recorded during the year, or reported in previous financial statement, are recognized as income or expenses in the year in which they arise except in case where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

ix) Taxes on Income :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax resulting from timing difference between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.

Deferred Tax assets are recognized only if there is a reasonable certainty that the same will be realized and are reviewed for the appropriateness of their carrying values at each balance sheet date.

Tax on Distributed Profit Payable is in accordance with the provision of Section 115-0 of the Income Tax Act, 1961 and in accordance with the guidance note on Accounting for Corporate Dividend Tax.

x) Employees short term & Post employement benefits :

Employee benefits of short-term nature are recognized as expense as and when it accrues. Post employment benefits are recognized as expenses on accrual basis at year end.

xi) Miscellaneous Expenditure :

Preliminary and share/debenture issue expenses are amortized over a period of five years.

xii) Impairment of assets :

At each reporting date, the company reviews the carrying values of its tangible and intangible assets to assess whether there is any indication of any asset being impaired. An asset is treated as impaired when the carrying value of asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss, if any, in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

xiii) Earning per share (EPS):

The basic earning per share ("EPS") is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earning per share, net profit after tax for the year and the weighted average number of shares outstanding during the year are adjusted with the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date.

xiv) Prior Period Adjustments, Extra-ordinary Items and Changes in Accounting Policies :

Prior period adjustments, extraordinary items and changes in accounting policies, if any having material impact on the financial affairs of the Company is disclosed.

xv) Provisions, Contingent Liabilities & Contingent Assets :

Provision is made when there is a legal or constructive obligation as a result of a past event and it is possible that a future sacrifice of economic benefits will be required to settle the obligation. Contingent Liabilities are not recognized but are discJosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

 
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