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Accounting Policies of Bambino Agro Industries Ltd. Company

Mar 31, 2015

A) The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with the accounting standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless otherwise stated.

b) The company has regrouped/reclassified the previous year figures wherever necessary in accordance with the requirements applicable in the current year.

c) Lease Rentals and other expenses in respect of leased assets are treated as revenue expenditure.

d) Sales include packing charges and are gross of commission to Selling Agents, discounts and net of Central Excise duty paid.

e) Export sales are accounted on the basis of Bill of Lading.

f) Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.

3. FIXED ASSETS

a) All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

b) In the case of imported machinery purchased out of foreign currency loan, the changes in liability arising due to exchange rate at the time of repayment of loan installment and due to realignment of loan in Indian Rupee have been adjusted in the cost of machinery.

4. DEPRECIATION

a) Depreciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act 2013.

b) Depreciation on additions to fixed assets has been calculated on pro-rata basis from the date of addition.

c) No depreciation has been provided on the fully depreciated assets.

5. INVENTORIES

a) Stores and Spares are valued at cost and are charged to revenue on the basis of issues.

b) Raw material and packing materials are valued at cost.

c) Finished goods are valued at Cost or Market price whichever is lower.

d) Empties are valued at net realizable value.

e) Obsolete/damaged and unserviceable stores & spares are Nil during the year (previous year Rs. Nil).

6. DEFERRED REVENUE EXPENDITURE

a) Expenditure incurred on advertisement and other expenses for promotion of new products and recruitment of key personnel is amortised over a period of five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement and personnel recruitment is expensed off to profit & loss account in the year in which it is incurred.

b) 1/10th of expenditure incurred on the issue of equity shares is written off. The balance is carried forward as deferred revenue expenditure subject to future write off.

7. RETIREMENT BENEFITS

a) Provident fund contributions, a defined contribution scheme, are charged to the profit and loss account.

b) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded through the scheme administered by Life Insurance Corporation of India.

c) Leave encashment benefit is provided on the un-utilized leave balances of the employees as at the end of the accounting year.

8. Prior period and extra-ordinary items

Prior period and extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

9. Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet are taken into cognizance.

10. Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, on timing differences, being the difference between taxable Income and accounting Income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are recognized subject to the consideration of prudence. The tax rates and laws that have been enacted or substantively enacted as of the balance sheet date are applied.




Sep 30, 2014

A) The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAPP) to comply with the accounting standards notified under the Companies(Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrua basis under the historical cost convention. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless otherwise stated.

b) The company has regrouped/reclassified the previous yearfigures wherever necessary in accordance with the requirements applicable in the current year.

c) Lease Rentals and other expenses in respect of leased assets are treated as revenue expenditure.

d) Sales include packing charges and are gross of commission to Selling Agents, discounts and net of Central Excise duty paid.

e) Export sales are accounted on the basis of Bill of Lading.

f) Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.

3. FIXED ASSETS

a) All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

b) In the case of imported machinery purchased out of foreign currency loan, the changes in liability arising due to exchange rate at the time of repayment of loan installment and due to realignment of loan in Indian Rupee have been adjusted in the cost of machinery.

4. DEPRECIATION

a) Depreciation on fixed assets is charged on Straight Line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

b) Depreciation on additions to fixed assets has been calculated on pro-rata basis from the date of addition.

c) No depreciation has been provided on the fully depreciated assets.

5. INVENTORIES

a) Stores and Spares are valued at cost and are charged to revenue on the basis of issues.

b) Raw material and packing materials are valued at cost.

c) Finished goods are valued at Cost or Market price whichever is lower.

d) Empties are valued at net realizable value.

e) Obsolete/damaged and unserviceable stores & spares are Nil during the year (previous year Rs. Nil).

6. DEFERRED REVENUE EXPENDITURE

a) Expenditure incurred on advertisement and other expenses for promotion of new products and recruitment of key personnel is amortised over a period of five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement and personnel recruitment is expensed off to profit & loss account in the year in which it is incurred.

b) 1/1 Oth of expenditure incurred on the issue of equity shares is written off. The balance is carried forward as deferred revenue expenditure subject to future write off

7. RETIREMENT BENEFITS

a) Provident fund contributions, a defined contribution scheme, are charged to the profit and loss account

b) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded through the scheme administered by Life Insurance Corporation of India.

c) Leave encashment benefit is provided on the un-utilized leave balances of the employees as at the end of the accounting year.

8. Prior period and extra-ordinary items

Prior period and extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

9. Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet are taken into cognizance.

10. Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, on timing differences, being the difference between taxable Income and accounting Income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are recognized subject to the consideration of prudence. The tax rates and laws that have been enacted or substantively enacted as of the balance sheet date are applied.

11. NOTES TO ACCOUNTS

I. Share Capital

For non-payment of call-moneys, 82,200 equity shares of Rs. 10/- each were forfeited by the Board after due compliance of legal formalities and such shares have not been reissued so far.

II. Secured Loans

a) All the term loans are secured by exclusive first charge by way of hypothecation of all movable assets both present & future and mortgage of immovable properties acquired from out of the respective loans.

b) Working Capital loans from Banks viz., State Bank of India, Commercial Branch, Hyderabad & Indian Overseas Bank Adarshnagar Branch, Hyderabad, IDBI Bank Chapel Road branch, Hyderabad are secured on pari passu basis by a first charge by way of hypothecation of all stocks of raw materials, packing materials, finished goods, stores & spares and book debts.

c) Working Capital loans from State Bank of India, Indian Overseas Bank and IDBI Bank are further secured by a second charge on the movable and immovable assets at Bibinagar and on plant and machinery at Gurgaon. Working Capital loans from State Bank of India, Indian Overseas Bank and IDBI Bank are further secured by a second charge on the movable & immovable assets of the Company on pari passu basis.

d) Sri M.Kishan Rao, Sri M.Raghuveer and Sri M.Subramanyam have guaranteed all the above loans in their personal capacities.

III. Sundry Creditors

Based on the information available with the Company, there are no dues / Interest outstanding to Micro, Small and Medium Enterprises, as defined under the Micro, Small and Medium Enterprises Development Act 2006, as at September 30,2014. (Previous Year: Nil)

IV. PLANT AT INDORE

The Company has completed the setting up Pasta plant at Indore in Madhya Pradesh. The cost of refurbishing the Plant and construction cost of building and other direct costs which were shown in Fixed Assets Schedule under Capital Work in Progress (cwp) last year have been capitalized. Other Indirect expenses relatable to the new plant like interest on term loan, salaries & wages etc, have been capitalized.

30th SEP, 2014 30th SEP, 2013

V. Expenditure in Foreign Currency

Travelling Expenses Rs. 13.39 lacs Rs. 4.18 lacs

VI. CIF Value of Imports

Capital equipment including Rs. 63.64lacs Rs.50.42 lacs

Spares and components

VII. Earnings in Foreign Currency

F O B Value of Exports Rs. 596.95 lacs Rs. 548.16 lacs

VIM. Taxes

Provision for Income tax Rs. 73,17,498/- Previous year Rs. 2,30,70,479/- (including extraordinary items).

III. Director''s Sitting Fees

Other expenses includes Directors Sitting Fee ofRs. 1,95,000 /- (Previous yearRs. 1,72,222/-)

IV. Deferred Tax

a. The Company has adopted Accounting Standard 22 "Accounting for Taxes on Income" issued by the ICAI, with effect from 1st April 2001. The accumulated deferred tax liability amounting to Rs. 3,56,65,778/- on account of timing differences between book and tax profits as of 1st April, 2001 has been adjusted against General Reserve and subsequent year''s deferred tax adjustments were carried out in the respective Profit and Loss Accounts.

b. During the current year the tax effect of the timing differences resulted in deferred tax liability of Rs. 3,06,074/- and the same has been shown in P&L Account.


Sep 30, 2013

1. a) The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAPP) to comply with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless otherwise stated.

b) As notified under the Companies Act, 1956, the financial statements for the year ended 30th September, 2013 are prepared as prescribed under the Revised Schedule VI. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. The company has regrouped/reclassified the previous year figures wherever necessary in accordance with the requirements applicable in the current year.

c) Lease Rentals and other expenses in respect of leased assets are treated as revenue expenditure.

d) Sales include, packing charges and are gross of commission to Selling Agents and discounts.

e) Export sales are accounted on the basis of Bill of Lading.

f) Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.

2. FIXED ASSETS

a) All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

b) In the case of imported machinery purchased out of foreign currency 2loan, the changes in liability arising due to exchange rate at the time of repayment of loan installment and due to realignment of loan in Indian Rupee have been adjusted in the cost of machinery.

3. DEPRECIATION

a) Depreciation on fixed assets is charged on Straight Line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

b) Depreciation on additions to fixed assets has been calculated on pro-rata basis from the date of addition.

c) No depreciation has been provided on the fully depreciated assets.

4. INVENTORIES

a) Stores and Spares are valued at cost and are charged to revenue on the basis of issues.

b) Raw material and packing materials are valued at cost.

c) Finished goods are valued at Cost or Market price whichever is lower.

d) Empties are valued at net realizable value.

e) Obsolete/damaged and unserviceable stores & spares are Nil during the year (previous year Rs. Nil).

5. DEFERRED REVENUE EXPENDITURE

a) Expenditure incurred on advertisement and other expenses for promotion of new products and recruitment of key personnel is amortised over a period of five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement and personnel recruitment is expensed off to profit & loss account in the year in which it is incurred.

b) 1/10* of expenditure incurred on the issue of equity shares is written off. The balance is carried forward as deferred revenue expenditure subject to future write off.

6. RETIREMENT BENEFITS

a) Provident fund contributions, a defined contribution scheme, are charged to the profit and loss account.

b) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded through the scheme administered by Life Insurance Corporation of India.

c) Leave encashment benefit is provided on the un-utilized leave balances of the employees as at the end of the accounting year.

7. Prior period and extra-ordinary items

Prior period and extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

8. Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet are taken into cognizance.

9. Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are recognized subject to the consideration of prudence. The tax rates and laws that have been enacted or substantively enacted as of the balance sheet date are applied.


Sep 30, 2010

A) The accounts have been prepared to comply in all material aspects with applicable accounting principles, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

b) Lease Rentals and other expenses in respect of leased assets are treated as revenue expenditure.

c) Sales include packing charges and are gross of commission to Selling Agents and discounts.

d) Export sales are accounted on the basis of Bill of Lading.

e) Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.

2. FIXED ASSETS

a) All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

b) In the case of imported machinery purchased out of foreign currency loan, the changes in liability arising due to exchange rate at the time of repayment of loan installment and due to realignment of loan in Indian Rupee have been adjusted in the cost of machinery.

3. DEPRECIATION

a) Depreciation on fixed assets is charged on Straight Line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

b) Depreciation on additions to fixed assets has been calculated on pro-rata basis from the date of addition.

4. INVENTORIES

a) Stores and Spares are valued at cost and are charged to revenue on the basis of issues.

b) Raw material and packing materials are valued at cost.

c) Finished goods are valued at Cost or Market price whichever is lower.

d) Empties are valued at net realizable value.

e) Obsolete/damaged and unserviceable stores & spares are Nil during the year (previous year Rs.Nil).

5. DEFERRED REVENUE EXPENDITURE

a) Expenditure incurred on advertisement and other expenses for promotion of new products and recruitment of key personnel is amortized over a period of five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement and personnel recruitment is expensed off to profit & loss account in the year in which it is incurred.

b) 1/10th of expenditure incurred on the issue of equity shares is written off. The balance is carried forward as deferred revenue expenditure subject to future write off.

6. RETIREMENT BENEFITS

a) Provident fund contributions, a defined contribution scheme, are charged to the profit and loss account.

b) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded through the scheme administered by Life Insurance Corporation of India.

c) Leave encashment benefit is provided on the un-utilized leave balances of the employees as at the end of the accounting year.

7. Prior period and extra-ordinary items

Prior period and extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

8. Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet are taken into cognizance.

9. Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are recognized subject to the consideration of prudence. The tax rates and laws that have been enacted or substantively enacted as of the balance sheet date are applied.

 
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