NOTE 2 – BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES
Basis of Presentation and Use of Estimates
The accompanying unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended
September 30, 2015 (
“2015 Annual Report”) of Cemtrex Inc. (
“Cemtrex” or the
“Company”). A summary of
the Company’s significant accounting policies is identified in Note 1 of the notes to the consolidated financial statements included in
the Company’s 2015 Annual Report. There have been no changes in
the Company’s significant accounting policies subsequent to
September 30, 2015.
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the Unites States (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X pursuant to the requirements of the U.S. Securities and Exchange Commission (‘SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements, the disclosure of contingent assets and liabilities in the consolidated financial statements and the accompanying notes, and the reported amounts of revenues, expenses and cash flows during the periods presented. Actual amounts and results could differ from those estimates. The estimates and assumptions
the Company makes are based on historical factors, current circumstances and the experience and judgment of
the Company's management.
The Company evaluates its estimates and assumptions on an ongoing basis.
The consolidated financial statements of
the Company include the accounts of its
100% owned
subsidiaries, Griffin Filters LLC, Cemtrex Ltd., ROB Cemtrex GmbH, and Advanced Industrial Services, Inc. All significant intercompany balances and transactions have been eliminated.
Significant Accounting Policies
Note 2 of the Notes to Consolidated Financial Statements, included in the annual report on Form 10-K for the year ended
September 30, 2015, includes a summary of the significant accounting policies used in the preparation of the consolidated financial statements.
Reclassifications
Certain reclassifications have been made to prior period amounts to conform to the current period presentation.
