Gem Cables and Conductors Ltd. कंपली की लेखा नीति

Mar 31, 2012

1. Basis of Preparation Of Financial Statements

Financial statements are prepared on accrual basis under the historical cost convention in accordance with the Accounting Standards as notified by the Companies (Accounting Standards) Rules 2006 and the relevant provisions of the Companies Act 1956.

2. Use of Estimates

The Preparation of financial statements, in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of revenue and expenses for the period.

Estimates are based on historical experience, where applicable and other assumptions that management believes are reasonable underthe circumstances.

3. Fixed Assets

Fixed Assets are at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

4. Depreciation

Depreciation on fixed assets is provided on Straight Line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act 1956.

5. Revenue Recognition

Revenue from sale of goods is recognized on delivery of the products, when all significant contractual obligations have been satisfied, the property in the goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

6. Inventories

Cost of Inventories, comprises of Cost of Purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition.

Raw Materials and Work-in-Progress are valued at average cost method.

Finished Goods produced and purchased are valued at Purchase order price.

Stores and Spares and packing materials are carried at cost.

7. Personal Guarantee

Loans shown on long term borrowings are covered by personal guarantee of Company Director and secured Loans granted to Company are also secured by Personal Guarantee of Directors apart from the primary securities.

8. Employee Benefits

Provision for Gratuity and Bonus is not made in the accounts for this financial year.

The retirement benefits such as gratuity, leave encashment etc., are not provided for in the accounts, since the same are met / paid on as and when need arose basis.

9. Foreign Currency Transactions

There are no foreign currency transactions during the year.

10. Settlements to Lenders

The Company made negotiated settlements with its lenders but the benefits, arising out of such settlements are recognised and given effect to, only even the terms and conditions including the total repayment in accordance with their terms and conditions of the settlement are complied with in totality.

11. Taxation

Deferred tax for timing differences between the income as per the financial statement and income as per the Income tax Act 1961 is accounted for using the tax rates and laws that have been enacted.

12. Confirmations

Sundry Debtors / Sundry Creditors and Loans and Advances balances are subject to confirmations.

13.OTS

Please refer to the director''s report regarding OTS / Financial restructuring with FI''s & Banks.

14. SEGMENT REPORTING

The company is principally engaged in single business segment Viz., Manufacturing of Cables and Conductors and operates in one geographical segment as per Accounting Standard 17 on ''Segment Reporting''. Accordingly no segment reporting has been made by the company.

15. Figures for the previous year have been regrouped to make them comparable with those of current year where ever practicable.

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Mar 31, 2010

A) Depreciation is provided on all depreciable assets on straight line method at the rates prescribed in schedule XIV of the companiesAct,1956 as amended from time to time and is calculated from the date on which asset is installed/brought to use.

b) Valuation of Inventory

i) Raw Material at average cost.

ii) Stores and Spares at cost.

iii) Finished goods at purchase order price.

c) Foreign .currency Transactions: There are no foreign currency transactions during the year.

d) Provision for Gratuity and Bonus is not made in the accounts for this Financial year.

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Mar 31, 2009

A) Depreciation is provided on all depreciable assets on straight line method at the rates prescribed in schedule XIV of the companies Act, 1956 as amended from time to time and is calculated from the date on which asset is installed / brought to use.

b) Valuation of Inventory

i) Raw Material at average cost.

ii) Stores and Spares at cost.

iii) Finished goods at purchase order price.

d) Foreign currency Transactions: There are no foreign currency transactions during the year.

e) Provision for Gratuity and Bonus is not made in the accounts for this Financial year.

f) Sundry Debtors/ Sundry Creditors and Loans and Advances balances are subject to confirmation.