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Accounting Policies of BCL Industries & Infrastructures Ltd. Company

Mar 31, 2014

1. Basis of Preparation of Financial Statements

The accounts have been prepared in accordance with the historical cost convention under accrual basis of accounting as per Indian Generally Accepted Accounting Principles (Indian GAAP). Accounts and Disclosures thereon comply with the Accounting Standards specified in Companies (Accounting Standard) Rules, other pronouncement of ICAI, provisions of the Companies Act, 1956.

2. Use of Estimates

Indian GAAP enjoins management to make estimates and assumptions that affect reported amount of assets, liabilities, revenue, expenses and contingent liabilities pertaining to years, the financial statement relate to. Actual result could differ from such estimates. Any revision in accounting estimates is recognized prospectively from current year and material revision, including its impact on financial statement, is reported in notes to accounts in the year of incorporation of revision.

3. Fixed Assets & Depreciation

i) Fixed assets are stated at their historical cost less depreciation.

ii) Depreciation has been charged on fixed assets as per rates of schedule XIV of the Companies Act, 1956 on WDV method except for the addition in plant & machinery installed on or after 01/04/1990 on which depreciation has been charged on straight line method.

iii) Capital Subsidy received against fixed capital outlay is deducted from gross value of individual fixed assets forming part of subsidy scheme granted, by way of proportionate allocation of subsidy amount thereon Depreciation is charged on net fixed assets after deduction of subsidy amount.

4. Inventories

Inventories are valued at the lower of cost or net realizable value. Basis of determination of cost remains follows:

a) Raw material, Packing material, Stores & Spares : Moving Weighted Average Basis

b) Work-in-progress : Cost of Input plus Overhead upto the stage of completion

c) Finished Goods : Cost of Input plus Appropriate Overhead

5. Turnover

i) Sales inclusive VAT,CST & Excise Duty.

ii) Goods sent on consignment are accounted in sales as and when respective "Bikri Patties" are received for the consignees.

6. Investments

Investment are stated at cost.

7. Revenue Recognisation

All incomes and expenditure are recognized on accrual basis. Sales and purchases are accounted for on the basis of passing of title to the goods. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable. In Real Estate Units percentage completion method adopted by the Company as per guidance note "Accounting for Real Estate Transaction (Revised 2012)" issued by the ICAI on 1st April, 2012 except those projects which were started before 2012 where project completion method had already been adopted.

8. Contingent Liability & Assets

In the opinion of the Board of Directors there is no contingent liability or asset, hence, no provision is made.

9. Deferred Tax

Deferred Tax resulting from timing differences between book and taxable profit is accounted for using the current tax rate, to the extent that the timing differences is expected to crystallize. The major components of deferred tax assets and liabilities as on 31st March 2014 arising out of the timing differences are as per Note 4 above.

10. Foreign Currency Transactions

Transactions in foreign currency are accounted at exchange rate prevailing on the date of transaction. Assets & Liabilities relating to transactions involving foreign currency are converted at exchange rates prevailing at the year end. The gain / loss arising out of exchange rate difference on account of revenue transcations is adjusted in Profit & Loss Account The loss arising out of exchange rate difference on account of borrowings outstanding is reported in finance costs.

11. Borrowing Cost

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifiying assets is one that necessarilly takes substantial period of time to get ready of its inteded use. AII other borrowing cost are charged to the Statement of Profit & Loss in the period in which they are incurred.

12. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

13. Retirement Benefits

Liabilities in respect of retirement benefit to employees are provided for as follow: -

a) Defined Benefit Plans:

i) Leave salary of employees on the basis of accrual valuation.

ii) Gratuity liabilities on the basis of estimated valuation.

b) Defined Contribution Plans:

i) Liability for the premium paid to insurance company in respect of employees covered under insurance policy.

ii) Provident Fund & ESI on the basis of actual liability accrued and paid to the respective authority.


Mar 31, 2012

1 Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention on accrual basis as a going concern, in accordance with applicable Accounting Standards and statutory presentational requirements of the Companies Act, 1956.

2 Fixed Assets & Depreciation

i) Fixed assets are stated at their historical cost less depreciation.

ii) Depreciation has been charged on fixed assets as per rates of schedule XIV of the Companies Act, 1956 on WDV method except for the addition in plant & machinery installed on or after 01 /04/1990 on which depreciation has been charged on straight line method.

3 Inventories

Raw Material, Work in Progress, Finished Goods and Stores & Spares are valued at Cost or Net Realizable Value whichever is less.

4 Turnover

i) Sales inclusive VAT, CST & Excise Duty.

ii) Goods sent on consignment are accounted in sales as and when respective "Bikri Patties' are received from the consignees.

5 Investments

Investment are stated at cost.

6 Revenue Recognisation

All incomes and expenditure are recognized on accrual basis.

7 Contingent Liability & Assets

In the opinion of the Board of Directors there is no contingent liability or asset; hence, no provision is made.

8 Deferred Tax

Deferred Tax resulting from timing differences between book and taxable profit is accounted for using the current tax rate, to the extent that the timing differences is expected to crystallize. The major components of deferred tax assets and liabilities as on 31st March 2012 raising out of the timing differences are as per Note 4 above.

9 Foreigft Currency Transactions

Transactions in foreign currency are accounted at exchange rate prevailing on the date of transaction. Assets & Liabilities relating to transactions involving foreign currency are converted at exchange rates prevailing at the year end. The gain / loss arising out of exchange rate difference on account of revenue transcations is adjusted in Profit & Loss Account. The loss arising out of exchange rate difference on account of borrowings outstanding is reported in finance costs.

10 Borrowing Cost

Borrowing Cost attributable to acquisition, construction or production of qualifying assets are capitalized as part of dead assets till the month in which the assets ready for use. Other borrowing cost are recognized as an expense in the period in which these are incurred.

11 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

12 Retirement Benefits

a) Company's contribution to Provident Fund is charged to Profit & Loss Account.

b) The Provision for Gratuity is made on the estimated basis.

14 Impairment of fixed Assets

The company has reviewed as at 31 /03/2012 the future earnings of its cash generation unit in accordance with AS-28 issued by ICAI . As the carrying amount of the assets does not exceed the future recoverable amount, consequently no adjustment is considered necessary by the management.

15 Segment Reporting

The company is engaged in the manufacturing of vanaspati ghee, vegetable oil etc. The entire operations are governed by the same set of risk and returns. In addition to that the company has started in real estate & infrastructure activities, which are in progress.

16 The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/ disclosure.

17 In the opinion of the Board of Directors, Current Assets, Loan and Advances etc; are realizable at the value approximately at which they are stated in the Balance Sheet in the ordinary course of business.

18 Balance in various personal accounts remains unverified since confirmations from the parties not received.

19 Provision for current tax

The Provision of Income Tax has been made as per the advice of Income Tax Advocate. If any extra demand is raised by income tax authorities that is accounted for in the year of payment/ final adjustment.


Mar 31, 2011

1. Accounting Convention:

The Financial statements are prepared under the historical cost convention on accrual basis as a going concern, in accordance with applicable Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets and Depreciation:

i) Fixed Assets are stated at cost net of cenvat and includes taxes, freight and other incidental expenses incurred in relation to acquisition and installation of the same less depreciation and Government Grants.

ii) Depreciation has been charged on fixed assets as per rates of schedule XIV of the Companies Act, 1956 on written down value method except for the additions in plant and machinery installed on or after 01/04/1990 on which depreciation has been charged on straight line method.

3. Stock Valuation:

a) Raw Material : Valued on the lower of cost or net realizable value. The cost is determined on a weighted average basis.

b) Work in Progress : Valued on the lower of cost or net realizable value. The cost is determined on a weighted average basis.

c) Finished Goods : Valued on the lower of cost or net realizable value.

d) Stores & Packing Material: Valued at cost on weighted average basis.

4. Investments

Investments are stated at cost.

5. Retirement Benefits:

Company's contribution to P.F. is charged to P & L Account. The provision for gratuity has been made.

6. Sales Turnover:

i) Sales includes VAT, CST and Excise Duty.

ii) Goods sent on consignment are accounted in sales as and when respective 'Bikri Patties' are received from the consignees.

7. Revenue Recognition:

Income & Expenditure are recognized on accrual basis.

8. Transaction in Foreign Currency

Transactions in foreign currency are accounted at exchange rate prevailing on the date of transaction. Assets & Liabilities relating to transactions involving foreign currency are converted at exchange rates prevailing at the year end. The loss or gain arising out of exchange rate difference is adjusted in P & L Account.

9. Borrowing Cost

Borrowing cost attributable to acquisition, construction or production of qualifying asset are capitalized as part of that asset, till the month in which the asset is ready for use. Other borrowing costs are recognized is an expense in the period in which these are incurred.

10. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961, as per advice of Tax Advocate. Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date.

11. Segment Information

The Company is engaged in the manufacturing of Vanaspati Ghee, Vegetable Oils etc. The entire operations are governed by the same set of risk & returns. Hence the same has been considered as representing a single segment. In addition to that the Company has started in Real Estate & Infrastructure activities by entering in partnership firm and from which the Company has earned a profit of Rs. 272.42 Lacs.

12. Impairment of Assets

At each Balance Sheet date an assessment is made whether any indication exists that an asset has been impaired, if any such indication exists, an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account. As the carrying amount of the assets does not exceed the future recoverable amount consequently, no adjustment is considered necessary by the Management.

13. Provision For Contingent Liabilities & Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be no outflow of resources. Contingent liabilities are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2010

1. Accounting Convention :

The Financial statements are prepared under the historical cost convention on accrual basis as a going concern, in accordance with applicable Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets and Depreciation :

i) Fixed Assets are stated at cost net of cenvat and includes taxes, freight and other incidental expenses incurred in relation to acquisition and installation of the same less depreciation and Government Grants.

ii) Depreciation has been charged on fixed assets as per rates of schedule XIV of the Companies Act, 1956 on written down value method except for the additions in plant and machinery installed on or after 01/04/1990 on which depreciation has been charged on straight ine method.

3. Stock Valuation :

a) Raw Material: Valued on the lower of cost or net realizable value. The cost is determined on a weighted average basis.

b) Work in Progress : Valued on the lower of cost or net realizable value. The cost is determined on a weighted average basis.

c) Finished Goods : Valued on the lower of cost or net realizable value.

d) Stores & Packing Material: Valued at cost on weighted average basis.

4. Investments:

Investments are stated at cost.

5. Retirement Benefits :

Companys contribution to P.F. is charged to P & L Account. The provision for gratuity has been made.

6. Sales Turnover:

i) Sales includes VAT, CST and Excise Duty.

ii) Goods sent on consignment are accounted in sales as and when respective Bikri Patties are received from the consignees.

7. Revenue Recognition :

Income & Expenditure are recognized on accrual basis.

8. Transaction in Foreign Currency

Transactions in foreign currency are accounted at exchange rate prevailing on the date of transaction. Assets & Liabilities relating to transactions involving foreign currency are converted at exchange rates prevailing at the year end. The loss or gain arising out of exchange rate difference is adjusted in P & L Account.

9. Borrowing Cost

Borrowing cost attributable to acquisition, construction or production of qualifying asset are capitalized as part of that asset, till the month in which the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

10. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961, as per advice of Tax Advocate.

Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date.

11. Segment Information

The Company is solely engaged in the manufacturing of Vanaspati Ghee, Vegetable Oils etc. The entire operations are governed by the same set of risk & returns. Hence the same has been considered as representing a single segment.

12. Impairment of Assets

At each Balance Sheet date an assessment is made whether any indication exists that an asset has been impaired, if any such indication exists, an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account. As the carrying amount of the assets does not exceed the future recoverable amount consequently, no adjustment is considered necessary by the Management.

13. Provision For Contingent Liabilities & Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be no outflow of resources. Contingent liabilities are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

 
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