Accounting Policies of Govind Poy Oxygen Ltd. Company

Mar 31, 2014

A) Basis of Accounting

The financial statements are prepared under the historical cost convention, on accrual basis of accounting in conformity with the accounting Principals generally accepted in India and comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act 1956.

b) Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting Principals requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Differences between the actual result and the estimates are recognised in the period in which the results are known / materialized.

c) Revenue Recognition

i) Sale of goods : Income is considered to accrue upon full execution of the terms of sale, which normally coincides with delivery.

ii) Interest/ Claims : Income is taken credit for on accrual basis wherever realisability is not in doubt and others on receipt.

iii) Penalty for delayed return of : Income is considered to accrue on time basis in accordance with the cylinders and other services terms of sale.

d) Fixed Assets

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation charged. Impairment in such value, if any, is adjusted. Cost includes all direct expenses incurred to bring an asset to working condition for its intended use.

Leasehold Lands are stated at the lease premiums paid, less amortization.

e) Impairment of Assets

The carrying amount of assets is reviewed at each Balance Sheet date for indicators of impairment based on intemal/external factors. An impairment loss is recognized and charged to statement of profit and loss in the period in which an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in the prior accounting periods is increased or reversed to the extent of the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

f) Depreciation/ Amortization

Depreciation on Fixed Assets has been provided during the year at the rates prescribed in Schedule XIV on written down method in accordance with the provisions of Section 205(2)(b) of the Companies Act, 1956.

g) 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 substantia! period of time to get ready for intended

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h) Foreign Currency Transaction

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities outstanding at the Balance Sheet date are translated at the applicable exchange rates prevailing at the year-end. The exchange gain/loss arising during the year are adjusted to the the statement of profit and loss.

i) Inventories

Inventories are valued at lower of cost or net realizable value on first in first out basis. For this purpose cost of bought out inventories comprises the purchase cost of the items net of Cenvat availed and the cost of bringing them to the factory. The cost of manufactured inventories comprises the direct cost of production plus appropriate overheads. The net realizable value of bought out inventories is their current replacement cost.

j) Investments

Long term investments are valued at cost. In case of long-term investments, provision/write down is made for permanent diminution in value. Current investments are valued at lower of cost or fair value.

k) Employee Benefits :

i) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

ii) Defined Contribution Plans

The company has defined contribution plans for employees comprising of Provident Fund and Employee''s State Insurance. The contributions paid/payable to these plans during the year are charged to the statement of profit and loss for the year.

iii) Defined Benefit Plans

Payment of Gratuity to employees is covered by the Gratuity Trust Scheme based on the Group Gratuity cum Assurance Scheme of the LIC of India, which is a defined benefit scheme and the company makes contributions under the said scheme.

iv) Other Long Term Employee Benefits

The company has a scheme for compensated absences for employees, the liability of which is determined on the basis of an actual valuation carried out at the end of the year.

l) Segment Reporting

The Company has identified two reportable segments viz. Gases and Investments. Segments have been identified and reported taking into account nature of products and services, the differing risk and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

m) Taxes on Income

Tax expense comprises of current and deferred tax.

Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.

The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in future. Deferred tax assets in case of unabsorbed depreciation are recognized only if there is virtual certainty that such deferred tax asset can be realized against future taxable profits. ''

n) Earnings per share

Basic Earnings per share is calculated by dividing the net profit after tax for the year attributable to equity shareholders of the company by weighted average number of equity shares in issue during the year.

o) 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, 2013

A) Basis of Accounting

The financial statements are prepared under the historical cost convention, on accrual basis of accounting in conformity with the accounting Principals generally accepted in India and comply with the Accounting Standards referred to in Section 2I1(3C) of the Companies Act 1956.

b) Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting Principals requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Differences between the actual result and the estimates are recognised in the period in which the results are known / materialized.

c) Revenue Recognition

i) Sale of goods : Income is considered to accrue upon full execution of the terms of sale, which normally coincides with delivery.

ii) Interest/ Claims : Income is taken credit for on accrual basis wherever realisability is not in doubt and others on receipt.

iii) Penalty for delayed return of cylinders : Income is considered to accrue on time basis in accordance with the terms of and other services sale.

d) Fixed Assets

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation charged. Impairment in such value, if any. is adjusted. Cost includes all direct expenses incurred to bring an asset to working condition for its intended use. Leasehold Lands are stated at the lease premiums paid, less amortization.

c) Impairment of Assets

The carrying amount of assets is reviewed at each Balance Sheet date for indicators of impairment based on internal/external factors. An impairment loss is recognized and charged to statement of profit and loss in the period in which an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in the prior accounting periods is increased or reversed to the extent of the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

f) Depreciation/ Amortization

Depreciation on Fixed Assets has been provided during the year at (he rales prescribed in Schedule XIV on witten down method in accordance with the provisions of Section 205(2){b) of the Companies Act. 1956.

g) 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 intended use. All other borrowing costs are charged to revenue.

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h) Foreign Currency Transaction

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities outstanding at the Balance Sheet date are translated at the applicable exchange rates prevailing at the year-end. The exchange gain/loss arising during the year are adjusted to the the statement of profit and loss.

i) Inventories

Inventories are valued at lower of cost or net realizable value on first in first out basis. For this purpose cost of bought out inventories comprises the purchase cost of the items net of Cenvat availed and the cost of bringing them to the factory. The cost of manufactured inventories comprises the direct cost of production plus appropriate overheads. The net realizable value of bought out inventories is their current replacement cost.

j) Investments

Long term investments are valued at cost. In case of long-term investments, provision/write down is made for permanent diminution in value. Current investments are valued at lower of cost or fair value.

k) Employee Benefits :

a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

b) Defined Contribution Plans

The company has defined contribution plans for employees comprising of Provident Fund and Employee''s State Insurance. The contributions paid/payable to these plans during the year are charged to the statement of profit and loss for the year.

c) Defined Benefit Plans

Payment of Gratuity to employees is covered by the Gratuity Trust Scheme based on the Group Gratuity cum Assurance Scheme of the LIC of India, which is a defined benefit scheme and the company makes contributions under the said scheme.

d) Other Long Term Employee Benefits

The company has a scheme for compensated absences for employees, the liability of which is determined on the basis of an actual valuation carried out at the end of the year.

1) Segment Reporting

The Company has identified two reportable segments viz. Gases and Investments. Segments have been identified and reported taking into account nature of products and services, the differing risk and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

m) Taxes on Income

Tax expense comprises of current and deferred tax.

Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.

The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in future. Deferred tax assets in case of unabsorbed depreciation are recognized only if there is virtual certainty that such deferred tax asset cati be realized against future taxable profits.

n) Earnings per share

Basic Earnings per share is calculated by dividing the net profit after tax for the year attributable to equity shareholders of the company by weighted average number of equity shares in issue during the year.

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o) 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

Method of Accounting

The Books of Accounts are maintained on accrual basis. The accounts are prepared on historical cost basis and as a going concern.

Fixed Assets

The Gross Block' of fixed assets are shown at the cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition

Depreciation

Depreciation on fixed assets has been provided on written down value method in accordance with the provision of Section 205 (2) (a) of the Companies Act 1956.

Inventories

Raw materials and finished goods are valued at cost or market value whichever is lower. Stores and spare parts are valued at cost. The cost is arrived at on first in first out basis.

Employees Benefits

Monthly Provident Fund contributions have been regularly deposited with the Government and charged to revenue. The Company has made arrangement with Life Insurance Corporation of India to administer its gratuity scheme.

Provision for Taxation

Provision for taxation is computed as per the income returnable under the Income-tax Act, 1961.

Proposed Dividend

Dividend proposed by me Board of Directors has been provided for in the accounts, pending approval at the Annual General Meeting.

Contingent Liabilities

Contingent Liabilities are not provided for and are disclosed by way of notes.

Other Accounting Policies

These are consistent with generally accepted accounting practices.

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Mar 31, 2010

Method of Accounting

The Books of Accounts are maintained on accrual basis, the accounts are prepared on historical cost basis and as a going concern.

Fixed Assets

The Gross Block7 of fixed assets are shown at the cost ol acquisition inclusive oi inward freight, duties and taxes and incidental expenses related to acquisition.

Depreciation

Depreciation on fixed assets has been provided on written down value method in accordance with the provision of Section 205 (2) (a) of the Companies Act 1956.

Inventories

Raw materials and finished goods are valued at cost or market value whichever is lower. Stores and spare parts are valued at cost. The cost is arrived at on first in first out basis.

Employees Benefits

Monthly Provident Fund contributions have been regularly deposited with the Government and charged to revenue. The Company has made arrangement with Life Insurance Corporation of India to administer its

Provision for taxation

Provision for taxation is computed as per the income returnable under the Income-tax Act, 1961.

Proposed Dividend

Dividend proposed by the Board of Directors has been provided for in the accounts, pending approval at the Annual General Meeting.

Contingent Liabilities

Contingent Liabilities are not provided for and are disclosed by way of notes.

Other Accounting Policies

These are consistent with generally accepted accounting practices.

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Mar 31, 2009

Method of Accounting

The Books of Accounts are maintained on accrual basis. The accounts are prepared on historical cost basis and as a going concern. Fixed Assets

The Gross Block of fixed assets are shown at the cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition.

Depreciation

Depreciation on fixed assets has been provided on written down value method in accordance with the provision of Section 205 (2) (a) of the Companies Act 1956.

Inventories

Raw materials and finished goods are valued at cost or market value whichever is lower. Stores and spare parts are valued at cost. The cost is arrived at on first in first out basis.

Employees Benefits

Monthly Provident Fund contributions have been regularly deposited with the Government and charged to revenue. The Company has made arrangement with Life Insurance Corporation of India to administer its gratuity scheme.

Provision for taxation

Provision for taxation is computed as per the income returnable under the Income-tax Act, 1961 after crediting MAT set-off availed during the year.

Proposed Dividend

Dividend proposed by the Board of Directors has been provided for in the accounts, pending approval at the Annual General Meeting.

Contingent Liabilities

Contingent Liabilities are not provided for and are disclosed by way of notes. Other Accounting Policies

These are consistent with generally accepted accounting practices.