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Gita Renewable Energy

BSE: 539013|ISIN: INE776O01018|SECTOR: Power - Generation & Distribution
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VOLUME 2
Gita Renewable Energy is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
 2.1 Basis of preparation of financial statements:
 
 The fi financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on the accrual method of accounting except as disclosed
 in the notes. GAAP comprises mandatory accounting standards as
 prescribed under Section 133 of the Companies Act,2013 (''the Act''),
 read with Rule 7 of the Companies(Accounts) Rules, 2014 and guidelines
 issued by the Securities and Exchange Board of India (SEBI). The
 accounting policies adopted in preparation of fi financial statements
 are consistent with those of previous year except for change in
 accounting policy initially adopted or a revision to the existing
 accounting policy that requires a change as against the one hitherto in
 use.
 
 2.2 Use of Estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires the Management to make estimates and assumptions that affect
 the reported balances of assets and liabilities and disclosures
 relating to contingent liabilities as at the date of the financial
 statements and reported amounts of income and expenses during the year.
 The Company believes that the estimates used in the preparation of the
 financial statements as prudent and reasonable. Actual results could
 differ from those estimates.
 
 2.3 Revenue Recognition:
 
 Revenue from Power Supply and Transmission Charges are accounted for on
 the basis of billings to consumers'' up-to the end of the accounting
 year.
 
 2.4 Depreciation:
 
 Depreciation on Tangible assets is provided on the straight line method
 over the useful lives of assets as per the rates specified under
 Schedule II of the Companies Act, 2013 on pro- rata basis.
 
 2.5 Fixed Assets:
 
 Fixed Assets are stated at cost less accumulated depreciation and
 impairment, if any. Direct costs like inland freight, duties, taxes and
 incidental expenses related to acquisition are capitalized with due
 adjustments for Cenvat / VAT credits.
 
 2.6 Impairment
 
 At each Balance sheet date, the Management assesses, whether there is
 any indication that Fixed Asset have suffered an impairment loss. If
 any such indication exists the recoverable
 
 amount of the Assets is estimated in order to determine the extent of
 the impairment if any. Where it is not possible to estimate the
 recoverable amount of individual asset, the Company estimates the
 recoverable amount of the cash generating unit to which the asset
 belongs.
 
 As per the assessment conducted by the company at March 31, 2015, there
 was no indication that fixed asset have suffered an impairment loss.
 
 2.7 Foreign Exchange Transactions:
 
 Transactions in foreign currencies are recorded at the exchange rates
 prevailing at the date of the transactions. In respect of the
 transactions covered by Forward Exchange Contracts, the difference
 between the forward rate and the exchange rate on the date of the
 transaction is recognized as Income or Expense over the life of the
 Contract. Transactions not covered by forward exchange rates and
 outstanding at year end are translated at exchange rates prevailing at
 the year end and the profit/loss so determined and also the realized
 exchange gain/losses are recognized in the Statement of Profit & Loss.
 The Company has not entered into foreign exchange contract during the
 year under review.
 
 2.8 Borrowing Cost:
 
 All borrowing costs are charged to revenue except to the extent they
 are attributable to qualifying assets, which are capitalized. During
 the year under review, there was no borrowing attributable to
 qualifying assets and hence no borrowing cost was capitalized.
 
 2.9 Segment Accounting:
 
 The company''s primary segment is identified as business segment based
 on nature of product, risks, returns and internal business reporting
 system and secondary segment is identified based on geographical
 locations of the customers as per Accounting Standard-17.  The company
 is principally engaged in a single business segment viz., Power
 Generation Further there is no reportable secondary segment. Ie.,
 Geographical segment.
 
 2.10 Taxes on Income:
 
 (a) Provision for current tax is made in accordance with the Income Tax
 Act, 1961.
 
 (b) in accordance with the Accounting Standard AS-22 ''Accounting for
 Taxes on Income'' issued by the Institute of Chartered Accountants of
 India, Deferred Tax Liability / Asset arising from timing differences
 between book and income tax profits is accounted for at the current
 rate of tax to the extent these differences are expected to crystallize
 in later years. However, Deferred Tax Assets are recognized only if
 there is a reasonable / virtual certainty of realization thereof.
 During the year under review, the company has generated deferred tax
 asset to the extent of Rs.60,21,955/-.
 
 2.11 Provisions and Contingencies:
 
 Provisions involving a 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
 accounts by way of a note. Contingent assets are neither recognized nor
 disclosed in the financial statements.
 
 Contingencies are recorded when it is probable that a liability will be
 incurred and the amounts can reasonably be estimated.
 
 Differences between the actual results and estimates are recognized in
 the year in which the results are known materialized. During the year
 under review, the company has not recognized any contingent
 liability/asset
Source : Dion Global Solutions Limited
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