Accounting Policies of Gagan Gases Ltd. Company

Mar 31, 2024

Significant accounting policies

(a) Statement of compliance

In accordance with the notification issued by the Ministry of Corporate Affairs, the Company
has adopted Indian Accounting Standards (referred to as "Ind AS") notified under the
Companies (Indian Accounting Standards) Rules, 2015 with effect from April 1,2016.

These financial statements have been prepared in accordance with Ind AS as notified under
the Companies (Indian Accounting Standards) Rules, 2015 read With Section 133 of the
Companies Act, 2013 (the "Act").

(b) Basis of preparation

The financial statements have been prepared on historical cost basis except for certain
financial instruments measured at fair value at the end of each reporting period as
explained in the accounting policies below.

(c) Use of estimates and judgments

The preparation of financial statements in conformity with Ind AS requires management to
make judgments, estimates and assumptions, that affect the application of accounting
policies and the reported amounts of assets, liabilities and disclosures of contingent assets
and liabilities at the date of these financial statements and the reported amounts of
revenues and expenses for the years presented. Actual results may differ from these
estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions
to accounting estimates are recognised in the period in which the estimate is revised and
future periods affected.

In particular, information about significant areas of estimation uncertainty and critical
judgments in applying accounting policies that have the most significant effect on the
amounts recognized in the financial statements are included in following notes:

(d) Revenue recognition

Revenue is measured at fair value of consideration received or receivable.

(i) Sale of products

The Company recognizes revenues on the sale of products, net of discounts, sales incentives,
customer bonuses and rebates granted, when products are delivered to dealers, which is
when title and risks and rewards of ownership pass to the customer.

Revenues are recognized when collectability of the resulting receivable is reasonably
assured.

(ii) Revenue from Services is recognised when the performance of agreed contractual task
has been completed. Revenue is measured at the fair value of the consideration received or
receivable, taking into account contractually defined terms of payment and excluding taxes
or duties collected on behalf of the government.

(e) Cost recognition

Costs and expenses are recognized when incurred and are classified according to their
nature. Expenditure capitalized represents employee costs, stores and other manufacturing
supplies, and other expenses incurred for construction including product
development undertaken by the Company.

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Mar 31, 2015

1. BASIS OF PREPARATION:

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP).These financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on an accrual basis and going concern basis. The accounting policies have been consistently applied by the company are consistent with those used in the previous year.

2. USE OF ESTIMATES:

The preparation of financial statements in conformity with 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 results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

3. INVENTORIES :

I. Raw Material, Stores & Spares & other trading products are valued at cost determined on FIFO basis .

II. Finished goods are valued at cost or net realizable value whichever is lower.

3. FIXED ASSETS AND DEPRECIATION

i) Fixed assets are stated at historical cost of acquisition and installation.

ii) Depreciation is provided on all depreciable assets on straight-line basis at the rates and in the manner prescribed in Schedule II of the Companies Act ,2013 . Depreciation on addition / deletion is charged on pro rata basis.

iii) Consequent to following the new provisions as stated in schedule II , necessary adjustment entries have been made in the books to retain 5% residual value of original cost.

4. RETIREMENT BENEFITS :

i) The Company's contribution to recognized provident fund and employee's state insurance contribution is charged to revenue.

ii) Provision for gratuity liability has been made .

5. CASH FLOW STATEMENT

Cash flow statement has been prepared under indirect method .

6. TAXATION

Current Tax is determined as per the current tax provisions applicable for Income Tax. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets/liabilities on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent years.

7. IMPAIRMENT :

The management assesses, using external and internal recourses whether there is an indication that any asset may be impaired If an asset is impaired ,the company recognizes an impairment loss as excess of the carrying amount of the asset over recoverable amount.

9. Managerial Remuneration: NIL

10. Balances of Sundry debtors, creditors and advances are subject to confirmation & reconciliation.

11. Related party disclosures as required by AS – 18

A. Transactions between the Company and related parties and the status of outstanding balances as at March 31, 2015

Note :The entire assets and liabilities are not allocable between these two segments because of nature of business.

13. Previous year's figures have been regrouped and rearranged wherever considered to make them comparable and in lines with the requirement of presentation. Figures are rounded to nearest rupees.

14. There are no transactions with SSI units, hence reporting for SSI units not required.

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Mar 31, 2014

1. METHOD OF ACCOUNTING:

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

2. INVENTORIES :

I. Raw Material, Stores & Spares & other trading products are valued at cost determined on FIFO basis .

II. Finished goods are valued at cost or net realizable value whichever is lower.

3. FIXED ASSETS AND DEPRECIATION

i) Fixed assets are stated at historical cost of acquisition and installation.

ii) Depreciation is provided on all depreciable assets on straight-line basis at the rates and in the manner prescribed in Schedule XIV of the Companies Act , 1956 except in case of furniture & fixture depreciation is provided at written down value basis at the rates and in the manner provided in schedule XIV to the Companies Act, 1956. Depreciation on addition / deletion is charged on pro rata basis.

4. RETIREMENT BENEFITS :

i) The Company''s contribution to recognized provident fund and employee''s state insurance contribution is charged to revenue.

ii) Provision for gratuity liability has been made .

5. CASH FLOW STATEMENT

Cash flow statement has been prepared under indirect method .

6. TAXATION

Current Tax is determined as per the current tax provisions applicable for Income Tax. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets/liabilities on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent years.

7. IMPAIRMENT :

The management assesses, using external and internal recourses whether there is an indication that any asset may be impaired If an asset is impaired ,the company recognizes an impairment loss as excess of the carrying amount of the asset over recoverable amount.

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Mar 31, 2013

1. METHOD OF ACCOUNTING:

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

2. INVENTORIES :

I. Raw Material, Stores & Spares & other trading products are valued at cost determined on FIFO basis.

II. Finished goods are valued at cost or net realizable value whichever is lower.

3. FIXED ASSETS AND DEPRECIATION

i) Fixed assets are stated at historical cost of acquisition and installation.

ii) Depreciation is provided on all depreciable assets on straight-line basis at the rates and in the manner prescribed in Schedule XIV of the Companies Act ,1956 except in case of furniture & fixture depreciation is provided at written down value basis at the rates and in the manner provided in schedule XIV to the Companies Act, 1956. Depreciation on addition / deletion is charged on pro rata basis.

4. RETIREMENT BENEFITS :

i) The Company''s contribution to recognized provident fund and employee''s state insurance contribution is charged to revenue. '' < .

ii) Provision for gratuity liability has been made as per revised limit.

5. CASH FLOW STATEMENT

Cash flow statement has been prepared under indirect method . ''

6. TAXATION

Current Tax is determined as per the current tax provisions applicable for Income Tax. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets/liabilities on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent years.

7. IMPAIRMENT:

The management assesses, using external and internal recourses whether there is an indication that any asset may be impaired If an asset is impaired ,the company recognizes an impairment loss as excess of the carrying amount of the asset over recoverable amount.

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Mar 31, 2012

1. METHOD OF ACCOUNTING:

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

2. INVENTORIES :

I. Raw Material, Stores & Spares &. other trading products are valued at cost determined on FIFO basis .

II. Finished goods are valued at cost or net realizable value whichever is lower.

3. FIXED ASSETS AND DEPRECIATION

i) Fixed assets are stated at historical cost of acquisition and installation.

ii) Depreciation is provided on all depreciable assets on straight-line basis at the rates and in the manner prescribed in Schedule XIV of the Companies Act ,1956 except in case of furniture & fixture depreciation is provided at written down value basis at the rates and in the manner provided in schedule XIV to the Companies Act, 1956. Depreciation on addition/deletion is charged on pro rata basis.

4. RETIREMENT BENEFITS :

i) The Company's contribution to recognized provident fund and employee's state insurance contribution is charged to revenue.

ii) Provision for gratuity liability has been made as per revised limit.

5. CASH FLOW STATEMENT

Cash flow statement has been prepared under indirect method .

6. TAXATION

Current Tax is determined as per the current tax provisions applicable for Income Tax. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets/liabilities on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent years.

7. IMPAIRMENT:

The manage meet assesses, using external and internal recourses whether there is an indication that any asset may be impaired If an asset is impaired ,the company recognizes an impairment loss as excess of the carrying amount of the asset over recoverable amount.

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Mar 31, 2010

1. METHOD OF ACCOUNTING:

The financial statements are prepared under historical cost convention on accrual basis and comply with Accounting Standards referred to in Section 211 (3c) of the Companies Act 1956

2. INVENTORIES :

I. Raw Material, Stores & Spares & other trading products are valued at cost determined on FIFO basis.

II. Finished goods are valued at cost or net realizable value whichever is lower

3. FIXED ASSETS AND DEPRECIATION

i) Fixed assets are stated at historical cost of acquisition and installation.

ii) Depreciation is provided on all depreciable assets on straight-line basis at the rates and in the manner prescribed in Schedule XIV of the Companies Act ,1956 except in case of furniture & fixture depreciation is provided at written down value basis at the rates and in the manner provided in schedule XIV to the Companies Act, 1956. Depreciation on addition / deletion is charged on pro rata basis

iii) The full value of leasehold land is amortized over the period of lease

4. RETIREMENT BENEFITS :

i) The Companys contribution to recognized provident fund and employees state insurance contribution is charged to revenue.

ii) Provision for gratuity liability as determined by actuary has been made.

5. CASH FLOW STATEMENT

Cash flow statement has been prepared under indirect method.

6. TAXATION

Current Tax is determined as per the current tax provisions applicable for Income Tax.. Deffered tax is recognized subject to the consideration of prudence in respect of deffered tax assets/ liabilities on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent years.

7. IMPAIRMENT:

The management assesses, using external and internal recourses whether there is an indication that any asset may be impaired If an asset is impaired ,the company recognises an impairment loss as excess of the carrying amount of the asset over recoverable amount.