Accounting Policies of Nakoda Ltd. Company

Mar 31, 2015

1. Significant Accounting Policies:

(A) Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles in India, the applicable accounting standards and as per provisions of the Companies Act, 2013 except depreciation under companies Act 2013 has not been working during the period of fifteen months of period . The company follows the mercantile system of accounting and recognizes Income and Expenditure on accrual basis. Accounting Policies not referred to otherwise are consistent with the generally accepted accounting principles.

Company has prepared the accounts for the period of fifteen months starting from the 1st January 2014 to 31st March 2015.

Use of estimates:-

The preparation of financial statements in conformity with generally accepted accounting principles in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities .on the date of the financial statements and reported amounts of income and expenses for the period of fifteen months,

(B) Fixed Assets:

Fixed Assets are stated at cost less Accumulated Depreciation. The Cost of assets comprises purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

(C) Depreciation :

Depreciation on Fixed Assets has been calculated on straight line method at the rate prescribed in schedule XIV to the Companies Act, 1956. Depreciation on addition/deletion during the year has been provided on prorate basis. The company has not adopted the rate and method prescribed in the Schedule II of the Companies Act 2013. i Hence to that extend the profit-loss as the case may be effected on the financial statements of the company.

(D) Investments :

Non-Current investment stated at cost. No provision for diminution in value, if any , has been made as these are long term investments and in the opinion of the management any decline is temporary. Current investments are stated at lower and fair value,

(E) Inventories:

1. Raw-materials .stores and spares , others and finished goods are valued at lower of cost and net realizable value.

2. In determining cost of raw materials „ stores and spares valued at cost. All cost of purchases, duties and taxes other than those subsuquently recoverable from tax authorities.

3. Cost of finished products include the cost of raw materials, packing materials an appropriate share of fixed and variable production overheads and excise duly as applicable on the finished goods.

(F) Retirement Benefits ;

Contribution to Provident Fund, Liability for Leave encashment and Gratuity are accounted for on accrual basis. There is no policy for the retirement benefit by the company,

(G) Excise Duty :

The liability far Centra! Excise duly on account of stocks lying in factory has not been provided in the books of accounts as the same is being accounted for on payment basis and not carried into stock as per practice followed by the company. However, the liability if accounted would have no effect on the Profit for the year.

(H) Revenue Recognition:

a) Sales is net of Salestax/ VAT, Excise duty, Sales return, Rate difference, damage goods Compensation etc.

b) Other income is accounted on due basis as per the terms.

(I) Foreign Currency Transactions :

Transaction in foreign currency are recorded at the rates of exchange in force at the time transactions are affected Any exchange difference arssing on settlement /transaction are dealt with in the statement of profit and loss except those relating to acquisition of fixed assets, which are adjusted to the cost of the assets if any,

(J) Borrowing Cost

Borrowing Cost that are directly attributable to the acquision/construction of qualifying assets,

Wherever applicable, are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(K) impairment Loss

As required by the Accounting Standards (AS 28) 'Impairment of Assets" issued by 3CA1. as informed to us; the company has carried out the assessment of impairment of assets. There has been no Impairment loss during the year.

(L) Related Party disclosure as per accounting standard 18

(a) Where control exists Nakoda Syntex Pvt, Ltd.

* B, G. Jain investment Pvt. Ltd, - Nakoda Realities Pvt. Ltd,

* G. P. Shah Investment Pvt. Ltd. - Nakoda Energy Pvt. Ltd.

* P, B. Jain Investment Pvt, Ltd. - Nakoda Financial Services Pvt. Ltd.

* Varju Investment Pvt. Ltd. - Nakoda Infrastructure & Leasing Pvt. Ltd.

* Nakoda Shipyard Pvt. Ltd, - Nakoda Hoidings Mauritius Ltd. Mauritius

* Indo Korean Petrochem Ltd.-South Korea - Gerback Holdings Pte. Ltd Singapore

* Nakoda Green Power Ltd. - Koncept infotenrnent Pvt. Ltd.

(b) Key Management Personnel :

Shri B. G. Jain (Chairman & Managing Director)

Shri D. B. Jain (Joint Managing Director & C,F,0.)

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Dec 31, 2012

(A) Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles in India, the applicable accounting standards and as per provisions of the Companies Act, 1956. The company follows the mercantile system of accounting and recognizes Income and Expenditure on accrual basis. Accounting Policies not referred to otherwise are consistent with the generally accepted accounting principles.

(B) FixedAssets:

FixedAssets are stated at cost lessAccumulated Depreciation. Cost comprises purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

(C) Depreciation:

Depreciation on Fixed Assets has been calculated on straight line method at the rate prescribed in schedule XIV to the Companies Act, 1956. Depreciation on addition/deletion during the year has been provided on prorate basis.

(D) Investments:

Investments are stated at cost of acquisition.

(E) Inventories:

Inventories are valued at lower of cost or net realisable value using FIFO cost method.

(F) Retirement Benefits:

Contribution to Provident Fund, Liability for Leave encashment and Gratuity are accounted foron accrual basis.

(G) Excise Duty:

The liability for Central Excise duty on account of stocks lying in factory has not been provided in the books of accounts as the same is being accounted foron payment basis and not carried into stock as per practice followed by the company. However, the liability if accounted would have no effect on the Profit forthe year.

(H) Revenue Recognition:

a) SalesisnetofSalestax/VAT, Excise duty, Sales return, Rate difference, damage goods Compensation etc.

b) Other income is accounted on due basis as per the terms.

(I) Foreign Currency Transactions :

Transaction in foreign currency are recorded at the rates of exchange in force at the time transactions are affected

(J) Borrowing Cost:

Borrowing Cost that are directly attributable to the acquision, construction of qualifying assets, Wherever applicable, are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(K) Impairment Loss:

As required by theAccounting Standards (AS 28) "Impairment ofAssets" issued by ICAI, as informed to us, the company has carried out the assessment of impairment of assets. There has been no Impairment loss during the year.

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Dec 31, 2011

(A) Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles in India, the applicable accounting standards and as per provisions of the Companies Act, 1956. The company follows the mercantile system of accounting and recognizes Income and Expenditure on accrual basis. Accounting Policies not referred to otherwise are consistent with the generally accepted accounting principles.

(B) Fixed Assets:

Fixed Assets are stated at cost less Accumulated Depreciation. Cost comprises purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

(C) Depreciation:

Depreciation on Fixed Assets has been calculated on straight line method at the rate prescribed in schedule XIV to the Companies Act, 1956. Depreciation on addition/deletion during the year has been provided on prorate basis.

(E) Investments:

Investments are stated at cost of acquisition.

(F) Inventories:

Inventories are valued at lower of cost or net realisable value using FIFO cost method.

(G) Retirement Benefits:

Contribution to Provident Fund, Liability for Leave encashment and Gratuity are accounted for on accrual basis.

(H) Excise Duty:

The liability for Central Excise duty on account of stocks lying in factory has not been provided in the books of accounts as the same is being accounted for on payment basis and not carried into stock as per practice followed by the company. However, the liability if accounted would have no effect on the Profit for the year.

(I) Revenue Recognition:

a) Sales is net of Sales tax/VAT, Excise duty, Sales return, Rate difference, damage goods Compensation etc.

b) Other income is accounted on due basis as per the terms.

(J) Foreign Currency Transactions:

Transaction in foreign currency are recorded at the rates of exchange in force at the time transactions are affected

(K) Borrowing Cost

Borrowing Cost that are directly attributable to the acquision, construction of qualifying assets,

Wherever applicable, are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(L) Impairment Loss

As required by the Accounting Standards (AS 28) "Impairment of Assets" issued by ICAI, as informed to us, the company has carried out the assessment of impairment of assets. There has been no Impairment loss during the year.

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Dec 31, 2010

(A) Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles in India, the applicable accounting standards and as per provisions of the Companies Act, 1956. The company follows the mercantile system of accounting and recognizes Income and Expenditure on accrual basis. Accounting Policies not referred to otherwise are consistent with the generally accepted accounting principles.

(B) Fixed Assets:

Fixed Assets are stated at cost less Accumulated Depreciation. Cost comprises purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

(C) Depreciation:

Depreciation on Fixed Assets has been calculated on straight line method at the rate prescribed in schedule XIV to the Companies Act, 1956. Depreciation on addition/deletion during the year has been provided on prorate basis.

(D) Investments:

Investments are stated at cost of acquisition.

(E) Inventories:

Inventories are valued at lowerof cost or net realisable value using FIFO cost method.

(F) Retirement Benefits:

Contribution to Provident Fund, Liability for Leave encashment and Gratuity are accounted for on accrual basis.

(G) Excise Duty:

The liability for Central Excise duty on account of stocks lying in factory has not been provided in the books of accounts as the same is being accounted for on payment basis and not carried into stock as per practice followed by the company. However, the liability if accounted would have no effect on the Profit for the year.

(H) Revenue Recognition:

a) Sales is net of Sales tax/ VAT, Excise duty, Sales return, Rate difference, damage goods Compensation etc.

b) Other income is accounted on due basis as per the terms.

(I)Foreign Currency Transactions:

Transaction in foreign currency are recorded at the rates of exchange in force at the time transactions are affected

(J) Borrowing Cost:

Borrowing Cost that are directly attributable to the acquision, construction of qualifying assets,

Wherever applicable, are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(K) Impairment Loss:

As required by the Accounting Standards (AS 28) “Impairment of Assets” issued by ICAI, as informed to us, the company has carried out the assessment of impairment of assets. There has been no Impairment loss during the year.

(L) Related Party disclosure as per accounting standard 18:

(a) Where control exists

- Nakoda Syntex Pvt. Ltd. - Koncept Infotenment Pvt. Ltd.

- B.G.Jain Investment Pvt. Ltd. - Nakoda Realities Pvt. Ltd.

- G.P.Shah Investment Pvt. Ltd. - Nakoda Energy Pvt. Ltd.

- P.B.Jain Investment Pvt. Ltd. - Nakoda Financial Services Pvt. Ltd.

- Varju Investment Pvt. Ltd. - Nakoda Infrastructure & Leasing Pvt. Ltd.

- Nakoda Shipyard Pvt. Ltd. - Surat Super Yarn Park Ltd.

- Nakoda Holdings Mauritius Ltd., Mauritius - Gerback Holdings Pte.Ltd., Singapore

- Indo Korean Petrochem Ltd., Korea

(b) Key Management Personnel : Shr iB.G.Jain (Chairman & Managing Director) Shri D. B. Jain (Joint Managing Director)

(c) Other related parties with whom transaction have taken place during the year: NIL

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Dec 31, 2009

(A) Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles in India, the applicable accounting standards and as per provisions of the Companies Act, 1956. The company follows the mercantile system of accounting and recognizes Income and Expenditure on accrual basis. Accounting Policies not referred to otherwise are consistent with the generally accepted accounting principles.

(B) Fixed Assets:

Fixed Assets are stated at cost less Accumulated Depreciation. Cost comprises purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

(C) Depreciation:

Depreciation on Fixed Assets has been calculated on straight line method at the rate prescribed in schedule XIV to the Companies Act, 1956. Depreciation on addition/deletion during the year has been provided on prorate basis.

(D) Investments:

Investments are stated at cost of acquisition.

(E) Inventories:

Inventories are valued at lower of cost or net realisable value using FIFO cost method.

(F) Retirement Benefits:

Contribution to Provident Fund, Liability for Leave encashment and Gratuity are accounted for on accrual basis.

(G) Excise Duty:

The liability for Central Excise duty on account of stocks lying in factory has not been provided in the books of accounts as the same is being accounted for on payment basis and not.carried into stock as per practice followed by the company. However, the liability if accounted would have no effect on the Profit forthe year. (H) Revenue Recognition:

a) Sales is net of Salestax/VAT, Excise duty, Sales return, Rate difference, damage goods Compensation etc.

b) Other income is accounted on due basis as per the terms.

(I) Foreign Currency Transactions:

Transaction in foreign currency are recorded at the rates of exchange in force at the time transactions are affected

(J) Borrowing Cost

Borrowing Cost that are directly attributable to the acquision, construction of qualifying assets, Wherever applicable, are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(K) Impairment Loss

As required by the Accounting Standards (AS 28) "Impairment of Assets" issued by ICAI, as informed to us, the company has carried out the assessment of impairment of assets. There has been no Impairment lossduring the year.