ACCOUNTING POLICIES AND NOTES ON ACCOUNTS A. Significant Accounting Policies: 1. Accounting Convention a. The Financial Statements are brpared under the historical cost convention on the basis of going concern and in accordance with the Generally Accepted Accounting Principles in India (GAAP) and provisions of the Companies Act, 2013 b. The brparation of financial statements are in conformity with generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and the differences between actual results and estimates are recognized in the periods in which the results are known/ materialize. 2. Revenue Recognition a. Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. b. Sales are recognized when goods are invoiced on dispatch to customers. Sales include Excise duty but exclude Sales Tax. c. I ncome from real estate sales is recognised on the transfer of all significant risks & rewards of the ownership to the buyers and it is not unreasonable to expect ultimate collection & no significant uncertainty exists regarding the amount of consideration. d. Determination of revenues under the percentage of completion method necessarily involves making estimates by the company. Revenue from real estate is recognised as per guideline issued by ICAI by applying Percentage Completion Method to sale of tenements e. Export incentive/benefits are accounted on accrual basis. Customs duty benefits in the form of Advance License entitlements on the export of goods are recognized and added to the cost of import. 3. Inventories Valuation a. Raw material, packing material, store & consumables are valued at the lower of cost and net realizable value except waste/scrap, which is valued at net realizable value. The cost is computed on FIFO basis. b. Raw material is issued from stores is treated as work in progress. c. Inventories of Work in Progress includes cost of Land, Premium for development rights, raw material, construction costs and allocated interest and expenses incidental to the projects undertaken by the company and are valued at cost. d. Finished Goods and process stock include cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition. 4. Fixed Assets a. Fixed Assets are stated at their original cost of acquisition / installation and included broperational expenses including borrowing cost. Fixed assets are shown net of accumulated debrciation. b. Capital Work-in-progress is stated at the amount spent up to the date of the Balance Sheet, however pending completion of the project, assets shown in Assets schedule and no debrciation is provided on the same. c. Leasehold land is shown at cost, including lease brmium paid. 5. Debrciation a. Debrciation has been charged on Straight Line Method corresponding to the rates brscribed under Schedule II to the Companies Act, 2013. b. Debrciation on additions/deletions is being provided on pro-rata basis from the date of such additions/deletions. 6. Borrowing Cost Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of such assets till such time as the assets are ready for their intended use. Qualifying assets are assets that necessarily require a substantial period of time to get ready for their intended use. All the other borrowing cost is recognized as an expense in the period in which they are incurred. 7. Impairment of Assets Impairment of assets has been recognized and losses if any has been charged to profit & Loss account. As of each balance sheet date, the carrying amount of assets is tested for impairment so as to determine - a. The provision for impairment loss, if any, required, or b. The reversal, if any, required or impairment has been recognized in brvious periods. 8. Leases Leasehold land is being amortized over the period of lease. 9. Transaction of Foreign Currency Items (As-11) a. Transactions of foreign currencies are recorded at the exchange rates brvailing on the date on which transaction took place. Gains and Losses arising out of fluctuation in the exchange rates are accounted for on realization. b. Current assets and liabilities denominated in foreign currency as at the balance sheet date are converted at the exchange rate brvailing on balance sheet date. Exchange differences are recognized as income or expense in the profit and loss account. c. The brmium or discount arising at the inception of such a forward exchange contract which is not intended for trading or speculation purposes are amortized as expense or income over the life of the contract. Exchange differences on such a contract are recognized in the profit and loss in the reporting period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognized as income or as expense for the period. The company does not have forward contracts and swaps for speculative purposes. 10. Investments a. Long-term investments including investment in the shares of subsidiaries are stated at cost. Provision for diminution in value of long-term investments if any is made, if such diminution is other than of temporary nature. b. Current Investment are carried at lower of cost or market value 11. Employee Benefits The company is using the Unit Credit Method and other assumption as per market; hence no change has been adjusted to the opening balance of reserves and surplus. a. The liability for superannuation benefits, on the basis of amount contributed to LIC's Group Gratuity Policy and the difference between the amount payable on retirement and recovered from LIC is charged to profit & loss account. b. Employee's Contribution to Provident Fund, Family Pension Fund is debited to Profit & Loss account. c. Leave encashment benefits & gratuity available on retirement are provided on the basis of actuarial valuation. 12. Taxes on Income a. Current tax is determined as the amount of tax payable in respect of taxable income for the period, using applicable tax rates and Laws. b. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between taxable income and accounting income that originates in one period and capable of reversal in one or more subsequent periods. 13. Provisions, Contingent Liabilities and Contingent Assets (AS-29) a. The provisions are recognized and measured by using a substantial degree of estimation. b. Contingent liabilities and contingent assets are disclosed after a careful evaluation of the facts and legal aspects of the matter involved in issue. 14. Segment Reporting Segments are identified based on dominant source and nature of risk and returns and the internal organizations and management structure 1) The figures of the brvious accounting period are re-grouped, re-classified wherever necessary and are not comparable with the figures of the current accounting year. The figures are rounded to nearest rupees in lacs. 2) In the opinion of the Board of Directors of the Company the sundry debtors, Loans and Advances, sundry creditors are subject to third party confirmation, have a value on realization / payment in the ordinary course of business, at least equal to the amounts at which they are stated and the provisions for all known liabilities are adequately made and are not in excess of the amount reasonably necessary. Small Scale Industries: a) There were no dues outstanding of Small scale Industries as on March 31, 2015. b) There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. c) The above information given in paragraphs 9(a) and 9(b) above regarding Small Scale Industrial Undertakings and Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors. Segmental Information The Company has identified Wind Power, Financing Activities & Real Estate Activities as its primary business segment taking into account the nature of products and services, risks and returns, the organization structure and the internal reporting system. 12. Amalgamation & Merger To consolidate businesses and synergies in operations, the Company has decided to merge its business with its hundred percent subsidiary company, GeeCee logistics and Distributions Private limited, as on 1st April 2014 ("Appointed date"), subject to various approvals. 12.A Share Warrants The Company had allotted 27,00,000 convertible warrants at T 36/- per warrant to promoters/ promoters group on brferential basis pursuant to the special resolution passed by the members of the Company at their meeting held on 9th July, 2014. The Warrants shall be convertible into Equity Shares (at the option of the Warrant holder) at any time, in one or more tranches, within a period of 18 months from the date of allotment of Warrants. An amount equivalent to 25% of total considerationreceived by the company and the balance of 75% will be received on conversion. 13) Revenue recognition As per guidance note issued by ICAI, which states that as per percentage completion method revenue is to be recognized only if all the three conditions are fulfilled viz. a) When the stage of completion of the project reaches a reasonable level of development. A reasonable level of development is not achieved if the expenditure incurred on construction and development costs is less than 25 % of the construction and development costs. b) Atleast 25% of the saleable project area is secured by contracts or agreements with buyers. c) Atleast 10% of the total revenue as per the agreements of sale or any other legally enforceable documents are realised at the reporting date in respect of each of the contracts and it is reasonable to expect that the parties to such contracts will comply with the payment terms as defined in the contracts. However, the company has not incurred 25% of the construction and development cost and hence, not recognised the revenue for the financial year 2014-2015 As per our report of even date For Sarda & Pareek Chartered Accountants FRN109262W CA Gaurav Sarda Partner Membership No. 110208 For GeeCee Ventures Limited Ashwin Kumar Kothari Gaurav Shyamsukha Nilesh kala Sonali Sathe Chairman - Non Executive Director Whole Time Director Chief Financial Officer Company Secretary Place: Mumbai Date: 28.05.2015 |