Galore Prints Industries Ltd. कंपली की लेखा नीति

Mar 31, 2014

Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These fiancial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C)[Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 1956.

Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materilised.

Fixed Assets

Fixed Assets are stated at cost, less accumulated depreciation/amortisation. Costs include all expenses incurred to bring the assets to its present location and condition.

Depreciation

Depreciation on fixed assets is provided to the extent of depreciable amount on written down value method (WDV) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 over their usefu life.

Foreign Currency Transactions

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

b. Monetary items in the form of Loans, Current Assets and Current Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet. Resulant gain or loss is accounted during the year.

c. In respect of Forward Exchange contracts entered into hedge foreign currency risks, the difference between the forward rate and exchange rate at the inception of the contract is recognised as income or expense over the life of the contract. Further, the exchange differences arising on such contracts are recognised as income or expenses along with the exchange differences on the underlying asset/liabilities. Further, in case of other contracts with committed exchange rates, the underlying is accounted at the rates so committed. Profit or loss on cancellation/ renewals of forward contracts is recognised during the year. In case of options contract, the losses are accountedon mark to mar basis.

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

Investments

Current investments are carried at lower of cost and quoted/fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

Inventories

Items of inventories are measured at lower of cost and net relisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition. Cost of raw material, stores and spares, packing materials, trading and other products are determined on weighted average basis.

Revenue Recognition

Revenue is recognised only when it can be reliably measured and it is reasonable to expect ultimate collection. Turnover includes sale of goods, services, sales tax, service tax, excise duty, adjusted for discounts (net), Value Added Tax (VAT) and gain/loss on corresponding hedge contracts.

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Mar 31, 2013

A) BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C)[Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 1956.

B) USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

C) FIXED ASSETS

Fixed Assets are stated at cost, less accumulated depreciation/amortization. Costs include all expenses incurred to bring the assets to its present location and condition.

D) DEPRECIATION

Depreciation on fixed assets is provided to the extent of depreciable amount on written down value method (WDV) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 over their usefu life.

E) FOREIGN CURRENCY TRANSACTIONS

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

b) Monetary items in the form of Loans, Current Assets and Current Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet. Resultant gain or loss is accounted during the year.

c) In respect of Forward Exchange contracts entered into hedge foreign currency risks, the difference between the forward rate and exchange rate at the inception of the contract is recognized as income or expense over the life of the contract. Further, the exchange differences arising on such contracts are recognized as income or expenses along with the exchange differences on the underlying asset/liabilities. Further, in case of other contracts with committed exchange rates, the underlying is accounted at the rates so committed. Profit or loss on cancellation/renewals of forward contracts is recognized during the year. In case of options contract, the losses are accounted on mark to mar basis.

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

F) INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

G) INVENTORIES

Items of inventories are measured at lower of cost and net reliable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition. Cost of raw material, stores and spares, packing materials, trading and other products are determined on weighted average basis.

H) REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Turnover includes sale of goods, services, sales tax, service tax, excise duty, adjusted for discounts (net), Value Added Tax (VAT) and gain/loss on corresponding hedge contracts.

I) 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 its intended use. All other borrowing costs are charged to Profit & Loss account.

J) PROVISION FOR CURRENT & DEFERRED TAX

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 and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

K) PROVISIONS, 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 but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2011

A) BASIS OF PRESENTATION

The accounts have been prepared using historical cost convention and on the basis of a going concern, in accordance with Section 211 (3C) and other provisions of the Companies Act, 1956, with revenue recognised and expenses accounted on accrual, including for committed obligations. Insurance and other claims are ac- counted for as and when admitted by the authorities. The management believes that the Company is a going concern and will continue to be so in foreseeable future, notwithstanding. The company was registered with Board for Industrial and Financial Reconstruction as a result of erosion of it's 100% Net Worth as on 30- 12-2001. The Board for Industrial and Financial Reconstruction had has already Sanctioned Scheme vide it's order dt 16-11-2009 for rehabilitation and revival of the company and the said Scheme has been implemented successfully by the company. The Hon'ble BIFR vide order dated 23-12-2010 has discharged company from provisions of SIC(SP) Act 1985 since it has achieved positive Net Worth.

The Company has restarted it's operations at newly shifted place at Bhiwadi Rajasthan during the last year. Hence, the accounts are prepared on going concern basis.

B) Registration of the Company with Board for Industrial and Financial Reconstruction/BIFR):

The Company had become a sick industrial undertaking at the end of the accounting year ended 30th December, 2001 therefore it had filed it's Reference with BIFR. The Hon'ble BIFR vide order dated 5th November 2003, declared it the Company as a sick industrial undertaking in terms of provisions of Section 3(1) (0) of the Sick Industrial Companies (Special Provisions) Act 1985. The Hon'ble BIFR appointed IOB as the Operating Agency. The BIFR vide order dt 16-11-2009 has approved sanctioned Scheme for Revival and Rehabilitation of the Company and the Sanctioned Rehabilitation Scheme has been implemented. The company has implemented Sanctioned Scheme and in compliance dues of Secured Creditors have been paid. As per the terms of Sanctioned Scheme, Net Worth of the company will become positive in the first year of the Scheme. The Hon'ble BIFR vide order dated 23-12-2010 has already discharged company from provisions of SIC(SP) Act 1985 since it has achieved positive Net Worth.

C) FIXED ASSETS

Cost of fixed assets comprises of purchase price, duties, levies and any directly attributable cost of bringing each asset to its working condition for the intended use. Financing costs relating to deferred credits or borrowed funds attributable to the acquisition of fixed assets upto the completion of construction or acquisition of fixed assets are included in the gross book value of the asset. The amount received from the customers on account of development and design charges has been credited to the Fixed Assets account and depreciation has been charged on the net cost without allocating it to the respective cylinders developed. Cenvat credit availed for excise and customs duties paid on fixed assets is reduced from the cost of fixed assets. Land, Building and Obsolete and unusable identified Plant and Machinery of the company has been disposed off by the Assets Sales Committee appointed by Hon'ble BIFR as a measure to revive and rehabilitate the company. Disposal Value has been / is being utilized as per Sanctioned Scheme approved by the Hon'ble BIFR. The UPFC has executed documents for sale of immovable assets.

In terms of Sanctioned Scheme by BIFR, company has shifted it's Plant and Machinery to the factory at Bhiwadi. The present carrying cost of the shifted plant and machinery after disposed of Rs 10435468/- is Rs.7041700/- as on the date of Balance Sheet i.e. 31.03,2011. It is not possible to determine the net recoverable value of these assets on the balance sheet date and provision for impairment loss, if any, will be made in the year of sale.

D) INVESTMENTS: The company has NIL Investment.

E) INVENTORIES

The company is valuing it's Inventories at lower of cost or replacement value after providing the obsolescence and damage.

i) Raw Material : At cost, on First in First out basis.

ii) Finished Goods : At lower of Cost or net releasable value Cost includes related overheads paid/ payable on such goods.

F) DEPRECIATION:

No depreciation has been provided during the year as most of the fixed assets were in the process of shifting / overhauling and operations resumed at the end of financial year.. Company has been following straight line method of depreciation at the rates and in the manner prescribed in schedule XIV of the Companies Act,1956 on pro-rata basis only in the case of new Plant & Machinery purchased .

g) revenue recognition

i) Revenue from sale of traded goods / manufactured goods is recognised on their dispatch to customers. ii) Gross Sales are inclusive of Sales Tax / VAT.

H) BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are Capitalised as part of the cost of such assets. A qualifying asset is one that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

I) CLAIMS BY/AGAINST THE COMPANY

Claims by/against the Company arising on any account are provided in the Accounts on receipts/acceptance basis.

J) RETIREMENT BENEFITS

Provisions for/Contribution to retirement benefits scheme are made as follows:-

i) Provident Fund on actual liability basis.

ii) Gratuity based on estimation made by the management on accrual basis.

iii) Leave encashment benefit on the basis of leave entitlement of employees remaining unutilised at the end of the year.

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Mar 31, 2010

A) BASIS OF PRESENTATION

-The accounts have been prepared using historical cost convention and on the basis ot a going concern, in accordance with Section 211 (3C) and other provisions of the Companies Act, 1956, with revenue recognised and expenses accounted on accrual, including for committed obligations. Insurance and other claims are accounted for as and when admitted by the authorities. The management believes that the Company is a going concern and will continue to be so in foreseeable future, notwithstanding it is registered with Board for Industrial and Financial Reconstruction as a result of erosion of it''s 100% Net Worth as on 30-12-2001. The Board for Industrial and Financial Reconstruction has already Sanctioned Scheme vide it''s order dt 16-11-2009 for rehabilitation and revival of the company and the said Scheme is being implemented. The Company has restarted it''s operations at newly shifted place at Bhiwadi Rajasthan during the year under review. Hence, the accounts are prepared on going concern basis. B) Registration of the Company with Board for Industrial and Financial

Reconstruction / BIFR):

The Company had become a sick industrial undertaking at the end of the accounting year ended 30th December, 2001 therefore it filed it''s Reference with BIFR.The Hon ble BIFR vide order dated 5th November 2003, declared the Company as a sick industrial undertaking in terms of provisions of Section 3(1) (0) of the Sick Industrial Companies (Special Provisions) Act 1985. The Hon''ble BIFR appointed IOB as the Operating Agency The BIFR vide order dt 16-11-2009 has approved sanctioned Scheme for Revival and Rehabilitation of the Company and the Sanctioned Rehabilitation Scheme is under implementation. The company is implementing Sanctioned Scheme and in compliance dues of Secured Creditors have been paid. As per Sanctioned Scheme, Net Worth of the will company become positive in the first year of the Scheme.

Cost of fixed assets comprises of purchase price, duties, levies and any directly attributable cost of bringing each asset to its working condition for the intended use. Financing costs relating to deferred credits or borrowed funds attributable to the acquisition of fixed assets upto the completion of construction or acquisition of fixed assets are included in the gross book value of the asset. The amount received from the customers on account of development and design charges has been credited to the Fixed Assets account and depreciation has been charged on the net cost without allocating it to the respective cylinders developed. Cenvat credit availed for excise and customs duties paid on fixed assets is reduced from the cost of fixed assets. Land, Building and Obsolete and unusable identified Plant and Machinery of the company has been disposed off by the Assets Sales Committee appointed by Hon''ble BIFR as a measure to revive and rehabilitate the company. Disposal Value has been / «; being utilized as pef Sanctioned Scheme approved by the Hon''ble BIFR. The UPFC has executed documents for sale of immovable assets.

In terms of Sanctioned Scheme by BIFR, company has shifted it''s Plant and Machinery - to the factory at Bhiwadi. The present carrying cost of the shifted plant and machinery is Rs 17988503/- as on the date of Balance Sheet i.e. 31.03,2010. It is not possible to determine the net recoverable value of these assets on the balance sheet date and provision for impairment loss, if any, will be made in the year of sale.

D) INVESTMENTS: The company has NIL Investment.

E) INVENTORIES:

The company is valuing it''s Inventories at lower of cost or replacement value after providing the obsolescence and damage.

i) Raw Material : At cost, on First in First out basis.

ii) Finished Goods : At lower of Cost or net releasable value

Cost includes related overheads paid/ payable on such goods.

F) DEPRECIATION:

No depreciation has been provided during the year as most of the fixed assets were in the process of shifting / overhauling and operations resumed at the end of financial year Company has been following straight line method of depreciation at the rates and in the manner prescribed in schedule XIV of the Companies Act.1956 on pro-rata basis only in the case of new Plant & Machinery purchased .

G) REVENUE RECOGNITION

i) Revenue from sale of traded goods / manufactured goods is recognised on their despatch to customers. ii) Gross Sales are inclusive of Sales Tax / VAT.

H) BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifyinp assets are Capitalised as part of the cost of such assets. A qualifying asset is one th^ necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

I) CLAIMS BY/AGAINST THE COMPANY

Claims by/against the Company arising on any account are provided in the Accounts on receipts/acceptance basis.

J) RETIREMENT BENEFITS

Provisions for/Contribution to retirement benefits scheme are made as follows:-

K) Provident Fund on actual liability basis.

ii) Gratuity based on estimation made by the management on accrual basis.

iii) Leave encashment benefit on the basis of leave entitlement of employees remaining unutilised at the end of the year.

L) DEFERRED REVENUE EXPENDITURE : NIL

M) FOREIGN CURRENCY TRANSACTIONS : NIL