Accounting Policies of Gujarat Aqua Industries Ltd. Company

Mar 31, 2012

1. The financial statements have been prepared under Historical Cost Convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company. The same are prepared on a going concern basis. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis

2. Closing Stock of Quoted shares are valued at market price and other shares at cost price. However at the yearend valuation of quoted shares has been taken at opening rates and not at market rates.

3. In the opinion of the board, current assets and loans and advances are approximately of the value stated, if realized, in the ordinary course of business and all known liabilities have been provided for.

5. Investments are stated at cost, and provisions for permanent diminution in value of such investments have been made as per the circumstances.

6. P F Superannuation Fund and other employ''s benefits scheme are not yet applicable to the company.

7. Previous year figures have been regrouped and rearranged wherever necessary .

8. Balance of Loans, Debtors, Creditors and depositors are subject to confirmation and reconciliation

9. Contingent Liabilities : As at 31-03-12 As at 31-03-11

a. Estimated amount of contracts Remaining to be executed on Capital A/c and not provided for - Nil - - Nil -

b. Outstanding guarantee furnished

To Banks/Financial Institutions - Nil - - Nil -

c. Outstanding guarantee furnished

In respect of credit facilities to Others - Nil - - Nil -

d. Liabilities in respect of bills Discounted with Banks - Nil - - Nil -

e. Claims against the Company Not acknowledged as debts - Nil - - Nil -

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Mar 31, 2010

1. The financial statements have been prepared under Historical Cost Convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company. The same are prepared on a going concern basis. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Closing Stock of Quoted shares are valued at market price and other shares at cost price. However at the year end valuation of quoted shares has been taken at opening rates and not at market rates.

3. In the opinion of the board, current assets and loans and advances are approximately of the value stated, if realized, in the ordinary course of business and all known liabilities have been provided for.

5. Investments are stated at cost, and provision for permanent diminution in value of such investments have been made as per the circumstances.

7. P F Superannuation Fund and other employees benefits scheme are not yet applicable to the company.

8. Previous year figures have been regrouped and rearranged wherever necessary.

9. Balance of Loans, Debtors, Creditors and depositors are subject to confirmation and reconciliation.

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Mar 31, 2009

1. Basis of Accounting:

The accounts have been prepared on the basis of historical costs and in accordance with applicable accounting standards. Mercantile System of Accounting is followed in case of income & Expenses.

2. Fixed Assets:

Fixed assets are stated at cost less depreciation. Cost comprises the purchases price and any attributable cost of bringing the assets to working conditions for it's intended use.

3. Depreciation: Depreciation is provided under the straight line method at the rates and the manner specified in the schedule XIV of the Companies Act, 1956. Depreciation on additions during the year is provided on a prorate basis from the date of addition.

4. Investment: Investments are considered as non-trade investments and have been stated at cost.

5. Inventories: Finished goods are valued at cost or market price whichever is lower.

6. Contingent Liabilities: There is no contingent liability and therefore is not provided in the books of accounts. "

7. Leasehold Right: Leasehold right is written off' in equal annual installment. The period of lease is 99 years.