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Accounting Policies of Chaman Lal Setia Exports Ltd. Company

Mar 31, 2015

Company Overview

A) your company has been running successfully into rice business since 1973. The long outstanding experience of the Directors has helped the Company to expand its global footprint. your Company's diverse product line covers product like Sella Rice, Bhatti Sella, Rice for Diabetic peoples ,Smoked rice, Pesticide Residue free rice. Company's uses its strong relationship with Domestic and Global Business partners for market penetration and presence. Company has introduced newer policies and strategies to facilitate development further.

1. Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act")/ Companies Act, 1956 ("the 1956 Act"), as applicable except for certain categories of fixed assets that are carried at re-valued amounts. The financial statements have been prepared under the historical cost convention on accrual basis. All Assets and Liabilities are classified into Current and Non- current as per the company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013.

2. Use of Estimates and Judgments

The preparation of the financial statements are in conformity with the Accounting Standards which requires management to make estimates and the assumption that affect the reported amount of assets and liabilities and disclosures relating to the contingent liabilities as on date of balance sheet and the reported amount of revenues and expenditure during the reported period. The estimates and assumptions used in the financial statements are based upon management's best evaluation of the statements. Examples of such estimates include useful life of fixed assets, creation of deferred tax asset, lease rentals and write off of deferred revenue expenditure. Actual results may differ from those estimates.

3. Revenue Recognition

The Company follows the mercantile system of accounting and recognizes the income and expenditure on accrual basis except in case of significant uncertainties. Certain items of income such as DEPB Income ,insurance claim, market fees refund, Service Tax Refunds ,Interest Subventions , overdue interest from customers etc have been considered on Payment Basis to the extent the amount is accepted by the parties. The principles of the revenue recognition are given below

Sales are recognized as follows

Domestic Sales-At the point of dispatches to customers.

Export Sales - At the time of issue of bill of lading

Sales are recorded net of sales returns, price differences and sales tax. Sale of license and duty draw back are recognized on realization basis.

4. Fixed Assets

Fixed Assets are stated as per Schedule II of Companies Act, 2013. During the year Assets whose useful life has been expired as per Companies, Act, 2013, however asset is still standing in books of accounts then as per schedule II Company has transferred 95% amount of asset in the depreciation reserve account and the carrying cost as on 01.04.2014 has been transferred to revenue reserve account and remaining amount (i.e 5%) is standing as residual value of assets in the books of accounts as on 31.03.2015.

5. Depreciation

Depreciation is provided on written down value basis at rates provided in Schedule II to the Companies Act,2013 and is systematically allocated over the useful life of an asset as specified in part C of schedule II of Companies Act, 2013. Company has re-calculated depreciation and the assets whose useful life has been expired as per Companies, Act, 2013, however asset is still standing in books of accounts then as per schedule II Company has transferred 95% amount of asset in the depreciation reserve account and the carrying cost as on 01.04.2014 has been transferred to revenue reserve account and remaining amount (i.e 5%) is standing as residual value of assets in the books of accounts as on 31.03.2015.

Depreciation on plant & Machinery has been provided on the basis of shifts worked in the case of both the units. Cost of leasehold land is amortized over the period of lease

6. Leases

In respect of operating lease, lease rentals are accounted on accrual basis in accordance with the respective lease agreements. However there is no lease as on the date.

7. Government Grants

Grants in the nature of capital contribution towards setting up modernization of projects is adjusted from the cost of the related fixed assets.

8. Deferred Tax

Deferred tax assets and liabilities are computed on the timing differences at the balance sheet date between the carrying amount of assets and liabilities and their respective tax bases. Deferred Tax Assets (DTA) is recognized based on management estimates of virtual certainty that sufficient future taxable income will be available against which such DTA can be realized. The deferred tax charge or credit is recognized using the tax rates and tax law that have been enacted or substantively enacted by the balance sheet date.

9. Employees Benefits

9.1 Defend Contribution Plans

Defend contribution plans are benefit plans under which the company pays fixed contribution to state managed benefit schemes. The company contributions to defend contribution plans are recognized in the Profit and loss account in the financial year to which they relate.

9.2 Defend Benefits Plans

The company has defend benefit plan in respect of its gratuity liability and contributes to a Gratuity Fund managed by LIC of India. Contribution is made to this fund yearly on the basis of calculation made by LIC keeping in view certain factor. This premium is charged to Profit & loss a/c in the year of payment.

10. Investments

Long Term Investment is intended to be held for more than a year. All others investment are current in nature. Long Term Investments are stated at cost while current investment at lower of cost and fare value.

11. Inventories

Inventories are valued at cost or net realizable value whichever is lower, as taken, valued and certified by the management. The basis for determining cost for various categories of inventories is as under Raw Material- At cost on FIFO Basis Finished Stock -At material cost appropriate share of production overhead

Packing Material -At Cost

Stores & Spares

Stores & spares arte charged to Profit & loss A/c in the year of purchase.

12. Foreign Exchange Transactions

Transactions in foreign currency are converted at the exchange rate prevailing at the date of the transaction. Foreign currency monetary assets and liabilities not covered by forward exchange contracts are restated at the yearend rates and the resultant gains or losses are recognized in the Profit and loss account. Nonmonetary items are carried in terms of historical cost denominated in foreign currency using the exchange rates at the date of transaction.

Forward contracts other than those entered into to hedge foreign currency risk on unexecuted frm commitment or oh highly probable forecast transactions are treated as foreign currency transactions and accounted accordingly. Premium on foreign exchange forward contracts are recognized in the Profit and loss account over the life of contract. Any Profit and loss arising on cancellation of forward contract is recognized as income or expense in the period in which they arise. This practice is being followed as per the AS11.

The company follows the Accounting Standards which are made mandatory .It is in the process of formulating the requisite mechanism/ systems to meet prescribed requirements under Accounting Standards 30, 31 & 32. It shall be following the accounting policy of recognition ,presentation & disclosure of forward exchange transactions including Derivative/Hedging/Currency Swaps & Interest Swaps etc prescribed under these Accounting Standards with effect from the date these are made mandatory by ICAI.

13. Researches and Development

Revenue Expenditure on Research & Development is charged as an expense in the year in which it is incurred. Capital expenditure is included in respective heads under fixed assets.

14. Miscellaneous Expenditure

Share Issue expenses etc are expensed pro-rata over the period of five years.

15 Provisions ,Contingent Liabilities and contingent assets:

Provisions involving 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 notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

16 Segment Reporting

Segment Reporting as per Accounting Standard 17: The Company has only one product segment i.e Rice and only one geographical segment.

17 Borrowing Cost

Borrowing Costs that are attributable to the Acquisition, Construction of Production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

18 Corporate Social Responsibility

As per section 135 of Companies Act, 2013 average net Profit of Company for immediately preceding three years is Rs.186354911. Company has to spent Rs. 3726918 i.e. 2% on average net Profit of Company. However during the year 2014-15 Company has spent Rs. 1137500 & amount unspent is Rs. 2589418. as it was frst year for spending of CSR amount therefore some projects are still in process and till next year Committee will be able to achieve all its targeted projects

19. Deferred Revenue

During the year Company has spent Rs. 3314620 on its advertisement campaign which is yet to begin and these expenses has not being charge to revenue and has been shown under the head Deferred Revenue expenditure in the balance sheet.

20. Dividend on Forfeiture Shares

As partly paid share holders has not made payments on 24.08.2015 i.e. last date for payment of balance amount of call money along with the share premium amount resulting their shares has been forfeited by the Company in their Board Meeting held on 28.08.2015. No dividend has been proposed on partly paid shares as these were forfeited.


Mar 31, 2014

1 Basis of Preparation of Financial Statements

The financial statements are prepared and presented under the Historical cost convention on the accrual basis of accounting and comply with the Accounting Standard prescribed by the Companies (Accounting Standards) Rules,2006 and relevant provisions of the Companies Act 1956 to the extent applicable, as adopted consistently by the company

2 Use of Estimates and Judgments

The preparation of the financial statements are in conformity with the Accounting Standards which requires management to make estimates and the assumption that affect the reported amount of assets and liabilities and disclosures relating to the contingent liabilities as on date of balance sheet and the reported amount of revenues and expenditure during the reported period. The estimates and assumptions used in the financial statements are based upon management''s best evaluation of the statements. Examples of such estimates include useful life of fixed assets, creation of deferred tax asset, lease rentals and write off of deferred revenue expenditure. Actual results may differ from those estimates.

3 Revenue Recognition

The Company follows the mercantile system of accounting and recognizes the income and expenditure on accrual basis except in case of significant uncertainties. Certain items of income such as DEPB Income ,insurance claim, market fees refund, Service Tax Refunds, Interest Subventions, overdue interest from customers etc have been considered on Payment Basis to the extent the amount is accepted by the parties. The principles of the revenue recognition are given below

Sales are recognized as follows

Domestic Sales-At the point of dispatches to customers.

Export Sales - At the time of issue of bill of lading

Sales are recorded net of sales returns, price differences and sales tax. Sale of license and duty draw back are recognized on realization basis.

4 Fixed Assets

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

Capital work in progress is stated at cost. Capital WIP includes the cost of fixed assets that are not yet ready for their intended use, as on the balance sheet date.

5. Depreciation

Depreciation is provided on written down value basis at rates provided in schedule XIV to the Companies Act,1956. The depreciation rates which are different from principal rates specified in schedule are as follows;

Tarpoline 100%

Wooden & Plastic Crates 100%

Depreciation on plant & Machinery has been provided on the basis of shifts worked in the case of both the units. Cost of leasehold land is amortized over the period of lease.

6 Leases

In respect of operating lease, lease rentals are accounted on accrual basis in accordance with the respective lease agreements. However there is no lease as on the date .

7 Government Grants

Grants in the nature of capital contribution towards setting up modernization of projects is adjusted from the cost of the related fixed assets.

8 Deferred Tax

Deferred tax assets and liabilities are computed on the timing differences at the balance sheet date between the carrying amount of assets and liabilities and their respective tax bases. Deferred Tax Assets (DTA) is recognized based on management estimates of virtual certainty that sufficient future taxable income will be available against which such DTA can be realized. The deferred tax charge or credit is recognized using the tax rates and tax law that have been enacted or substantively enacted by the balance sheet date.

9 Employees Benefits

9.1 Defined Contribution Plans

Defined contribution plans are benefit plans under which the company pays fixed contribution to state managed benefit schemes. The company contributions to defined contribution plans are recognized in the profit and loss account in the financial year to which they relate.

9.2 Defined Benefits Plans

The company has defined benefit plan in respect of its gratuity liability and contributes to a Gratuity Fund managed by LIC of India. Contribution is made to this fund yearly on the basis of calculation made by LIC keeping in view certain factor. This premium is charged to Profit & loss a/c in the year of payment.

10 Investments

Long Term Investment is intended to be held for more than a year. All others investment are current in nature.

Long Term Investments are stated at cost while current investment at lower of cost and fare value.

11 Inventories

Inventories are valued at cost or net realizable value whichever is lower, as taken, valued and certified by the management. The basis for determining cost for various categories of inventories is as under

Raw Material- At cost on FIFO Basis

Finished Stock -At material cost appropriate share of production overhead

Packing Material -At Cost

Stores & Spares

Stores & spares arte charged to profit & loss A/c in the year of purchase.

12 Foreign Exchange Transactions

Transactions in foreign currency are converted at the exchange rate prevailing at the date of the transaction. Foreign currency monetary assets and liabilities not covered by forward exchange contracts are restated at the yearend rates and the resultant gains or losses are recognized in the profit and loss account. Nonmonetary items are carried in terms of historical cost denominated in foreign currency using the exchange rates at the date of transaction.

Forward contracts other than those entered into to hedge foreign currency risk on unexecuted firm commitment or oh highly probable forecast transactions are treated as foreign currency transactions and accounted accordingly. Premium on foreign exchange forward contracts are recognized in the profit and loss account over the life of contract. Any profit and loss arising on cancellation of forward contract is recognized as income or expense in the period in which they arise.

The company follows the Accounting Standards which are made mandatory. It is in the process of formulating the requisite mechanism/systems to meet prescribed requirements under Accounting Standards 30, 31 & 32. It shall be following the accounting policy of recognition, presentation & disclosure of forward exchange transactions including Derivative/Hedging/Currency Swaps & Interest Swaps etc prescribed under these Accounting Standards with effect from the date these are made mandatory by ICAI.

13 Researches and Development

Revenue Expenditure on Research & Development is charged as an expense in the year in which it is incurred. Capital expenditure is included in respective heads under fixed assets.

14. Miscellaneous Expenditure

Share Issue expenses etc are expensed pro-rata over the period of five years.

15 Provisions ,Contingent Liabilities and contingent assets:

Provisions involving 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 notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

16 Segment Reporting

Segment Reporting as per Accounting Standard 17: The Company has only one product segment i.e Rice and only one geographical segment.

17 Borrowing Cost

Borrowing Costs that are attributable to the Acquisition, Construction of Production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.


Mar 31, 2013

1 Basis of Preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the Accounting Standard prescribed by the Companies (Accounting Standards) Rules,2006 and relevant provisions of the Companies Act 1956 to the extent applicable, as adopted consistently by the Company.

2 Use of Estimates and Judgments

The preparation of the financial statements are in conformity with the Accounting Standards which requires management to make estimates and the assumption that affect the reported amount of assets and liabilities and disclosures relating to the contingent liabilities as on date of balance sheet and the reported amount of revenues and expenditure during the reported period. The estimates and assumptions used in the financial statements are based upon management''s best evaluation of the statements. Examples of such estimates include useful life of fixed assets, creation of deferred tax asset, lease rentals and write off of deferred revenue expenditure. Actual results may differ from those estimates.

3 Revenue Recognition

The Company follows the mercantile system of accounting and recognizes the income and expenditure on accrual basis except in case of significant uncertainties. Certain items of income such as DEPB Income insurance claim, market fees refund, Service Tax Refunds, Interest Subventions, overdue interest from customers etc have been considered on Payment Basis to the extent the amount is accepted by the parties. The principles of the revenue recognition are given below

Sales are recognized as follows

Domestic Sales-At the point of dispatches to customers.

Export Sales -At the time of issue of bill of lading

Sales are recorded net of sales returns, price differences and sales tax. Sale of license and duty draw back are recognized on realization basis.

4 Fixed Assets

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

Capital work in progress is stated at cost. Capital WIP includes the cost of fixed assets that are not yet ready for their intended use, as on the balance sheet date.

5. Depreciation

Depreciation is provided on written down value basis at rates provided in schedule XIV to the Companies Act, 1956. The depreciation rates which are different from principal rates specified in schedule are as follows;

Tarpoline 100%

Wooden & Plastic Crates 100%

Depreciation on plant & machinery has been provided on the basis of shifts worked in the case of both the units. Cost of leasehold land is amortized over the period of lease.

6 Leases

In respect of operating lease, lease rentals are accounted on accrual basis in accordance with the respective lease agreements. However there is no lease as on the date.

7 Government Grants

Grants in the nature of capital contribution towards setting up of projects in backward areas is adjusted from the cost of the related fixed assets.

8 Deferred Tax

Deferred tax assets and liabilities are computed on the timing differences at the balance sheet date between the carrying amount of assets and liabilities and their respective tax bases. Deferred Tax Assets (DTA) is recognized based on management estimates of virtual certainty that sufficient future taxable income will be available against which such DTA can be realized. The deferred tax charge or credit is recognized using the tax rates and tax law that have been enacted or substantively enacted by the balance sheet date.

9 Employees Benefits

9.1 Defined Contribution Plans

Defined contribution plans are benefit plans under which the Company pays fixed contribution to state managed benefit schemes. The Company contributions to defined contribution plans are recognized in the profit and loss account in the financial year to which they relate.

9.2 Defined Benefits Plans

The Company has defined benefit plan in respect of its gratuity liability and contributes to a Gratuity Fund managed by LIC of India. Contribution is made to this fund yearly on the basis of calculation made by LIC keeping in view certain factors. This premium is charged to profit & loss a/c in the year of payment.

10 Investments

Long Term Investment is intended to be held for more than a year. All others investment are current in nature. Long Term Investments are stated at cost while current investment at lower of cost and fare value.

11 Inventories

Inventories are valued at cost or net realizable value whichever is lower, as taken, valued and certified by the management. The basis for determining cost for various categories of inventories is as under

Raw Material-At cost on FIFO Basis

Finished Stock -At material cost appropriate share of production overhead Packing Material-At Cost

Stores & Spares

Stores & spares arte charged to profit & loss A/c in the year of purchase.

12 Foreign Exchange Transactions

Transactions in foreign currency are converted at the exchange rate prevailing at the date of the transaction. Foreign currency monetary assets and liabilities not covered by forward exchange contracts are restated at the yearend rates and the resultant gains or losses are recognized in the profit and loss account. Nonmonetary items are carried in terms of historical cost denominated in foreign currency using the exchange rates at the date of transaction.

Forward contracts other than those entered into to hedge foreign currency risk on unexecuted firm commitment or on highly probable forecast transactions are treated as foreign currency transactions and accounted accordingly. Premium on foreign exchange forward contracts are recognized in the profit and loss account over the life of contract. Any profit and loss arising on cancellation of forward contract is recognized as income or expense in the period in which they arise.

The Company follows the Accounting Standards which are made mandatory. It is in the process of formulating the requisite mechanism/systems to meet prescribed requirements under Accounting Standards 30,31 & 32. It shall be following the accounting policy of recognition .presentation & disclosure of forward exchange transactions including Derivative/Hedging/Currency Swaps & Interest Swaps etc prescribed under these Accounting Standards with effect from the date these are made mandatory by ICAI.

13 Researches and Development

Revenue Expenditure on Research & Development is charged as an expense in the year in which it is incurred. Capital expenditure is included in respective heads under fixes assets.

14 Miscellaneous Expenditure

Share Issue expenses etc are expensed pro-rata overthe period of five years.

15 Provisions .Contingent Liabilities and contingent assets:

Provisions involving 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 notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

16 Segment Reporting

Segment Reporting as per Accounting Standard 17 :The Company has only our business segment namely rice there is no different geographical segment.

17 Borrowing Cost

Borrowing Costs that are attributable to the Acquisition, Construction of Production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.


Mar 31, 2012

1 Basis of Preparation of Financial Statements

The financial statements are prepared and presented under the Historical cost convention on the accrual basis of accounting and comply with the Accounting Standard prescribed by the Companies (Accounting Standards) Rules,2006 and relevant provisions ofthe Companies Act 1956 to the extent applicable, as adopted consistently by the company.

2 Use of Estimates and Judgments

The preparation of the financial statements are in conformity with the Accounting Standards which requires management to make estimates and the assumption that affect the reported amount of assets and liabilities and disclosures relating to the contingent liabilities as on date of balance sheet and the reported amount of revenues and expenditure during the reported period. The estimates and assumptions used in the financial statements are based upon management's best evaluation of the statements. Examples of such estimates include useful life of fixed assets, creation of deferred tax asset, lease rentals and write off of deferred revenue expenditure. Actual results may differ from those estimates.

3 Revenue Recognition

The Company follows the mercantile system of accounting and recognizes the income and expenditure on accrual basis except in case of significant un certainties. Certain items of income such as DEPB Income, insurance claim, market fees refund, overdue interest from customers etc have been considered to the extent the amount is accepted by the parties. The principles of the revenue recognition are given below.

Sales are recognized as follows:

Domestic Sales-At the point of dispatches to customers.

Export Sales - At the time of issue of bill of lading

Sales are recorded net of sales returns, price differences and sales tax. Sale of license and duty draw back are recognized on realization basis.

4 Fixed Assets

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

Capital work in progress is stated at cost. Capital WIP includes the cost of fixed assets that are not yet ready for their intended use, as on the balance sheet date.

5. Depreciation

Depreciation is provided on written down value basis at rates provided in schedule XIV to the Companies Act, 1956. The depreciation rates which are different from principal rates specified in schedule are as follows;

Tarpoline 100%

Wooden & Plastic Crates 100%

Depreciation on plant & Machinery has been provided on the basis of shifts worked in the case of both the units. Cost of leasehold land is amortized over the period of lease.

6 Leases

In respect of operating lease, lease rentals are accounted on accrual basis in accordance with the respective lease agreements.

7 Government Grants

Grants in the nature of capital contribution towards setting up of projects in backward area is adjusted from the cost of the related fixed assets.

8 Deferred Tax

Deferred tax assets and liabilities are computed on the timing differences at the balance sheet date between the carrying amount of assets and liabilities and their respective tax bases. Deferred Tax Assets (DTA) is recognized based on management estimates of virtual certainty that sufficient future taxable income will be available against which such DTA can be realized. The deferred tax charge or credit is recognized using the tax rates and tax law that have been enacted or substantively enacted by the balance sheet date.

9 Employees Benefits

9.1 Defined Contribution Plans

Defined contribution plans are benefit plans under which the company pays fixed contribution to state managed benefit schemes. The company contributions to defined contribution plans are recognized in the profit and loss account in the financial year to which they relate.

9.2 Defined Benefits Plans

The company has defined benefit plan in respect of its gratuity liability and contributes to a Gratuity Fund managed by LIC of India . Contribution is made to this fund yearly on the basis of calculation made by LIC keeping in view certain factor. This premium is charged to Profit & loss a/c in the year of payment.

10 Investments

Long Term Investment are intended to be held for more than a year. All others investment are current in nature.

Long Term Investments are stated at cost while current investment at lower of cost and fare value.

11 Inventories

Inventories are valued at cost or net realizable value whichever is lower, as taken, valued and certified by the management. The basis for determining costforvarious categories of inventories is as under:

RawMaterial-Atcoston FIFO Basis

Finished Stock -At material cost appropriate share of production overhead Packing Material -At Cost Stores & Spares Stores & spares arte charged to profit & loss A/c in the year of purchase.

12 Foreign Exchange Transactions

Transactions in foreign currency are converted at the exchange rate prevailing at the date of the transaction. Foreign currency monetary assets and liabilities not covered by forward exchange contracts are restated at the year end rates and the resultant gains or losses are recognized in the profit and loss account. Nonmonetary items are carried in terms of historical cost denominated in foreign currency using the exchange rates at the date of transaction.

Forward contracts other than those entered into to hedge foreign currency risk on unexecuted firm commitment or on highly probable forecast transactions are treated as foreign currency transactions and accounted accordingly. Premium on foreign exchange forward contracts are recognized in the profit and loss account over the life of contract. Any profit and loss arising on cancellation of forward contract is recognized as income or expense in the period in which they arise.

The company follows the Accounting Standards which are made mandatory It is in the process of formulating the requisite mechanism /systems to meet prescribed requirements under Accounting Standards 30,31 & 32. It shall be following the accounting policy of recognition .presentation & disclosure of forward exchange transactions including Derivative/Hedging/Currency Swaps & Interest Swaps etc prescribed underthese Accounting Standards with effect from the date these are made mandatory by ICAI.

13 Research and Development

Revenue Expenditure on Research & Development is charged as an expense in the year in which it is incurred. Capital expenditure is included in respective heads under fixes assets.

14 Miscellaneous Expenditure

Share Issue expenses etc are expensed pro-rata over the period of five years.

15 Provisions .Contingent Liabilities and contingent assets:

Provisions involving 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 notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

16 Segment Reporting

Segment Reporting as per Accounting Standard 17: The Company has only our business segment namely rice there is no different geographical segment.

17 Borrowing Cost

Borrowing Costs that are attributable to the Acquisition, Construction of Production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.


Mar 31, 2010

(A) Sales

(I) Sales are accounted for on the date of Bill in the case of Domestic Sales and in the case of Export Sales it is accounted for on the date of Bill of Lading.

(ii) Interest on Time deposits and other Securities is accounted for an accrual basis.

(iii) Revenue from DEPB Licenses is accounted for on receipt basis.

(iv) Insurance Claims are accounted for on receipt basis.

(B) Accounting of Claims and Subsidies

(I) Insurance Claims & Govt. Subsidies are accounted for on the date of Receipts.

(ii) Subsidy receivable against a specific fixed assets is deducted from cost of relevant fixed asset otherwise Credited to Capital Reserve Account.

(C) Public Issue/Deferred Revenue Expenses

(I) Share Issue expenses etc are expensed pro-rata overthe period of five years.

(D) Retirement Benefits

(i) Companys Contribution paid/ payable during the year to Provident Fund & Gratuity Fund are charged to Profit & loss A/c.

(E) Fixed Assets

(i) Fixed Assets are stated at Cost of acquisition or Construction, including attributable interest and financial casts till such assets are put to use, less specific grants received.

(ii) Fixed Assets are stated at historical cost less depreciation till date.

(iii) Depreciation is provided on WDV basis as specified in Schedule XIV of the Companies Act 1956 on pro-rata basis. Depreciation on plant & Machinery has been provided on the basis of shifts worked in the case of both the units.

(iv) Cost of leasehold land is amortised overthe period of lease.

(F) Investment

(i) Long term Investments are stated at cost.

(G) Research & Development

(i) Revenue Expenses on Research & Development are Charged to P&L Account in the same year. Expenditure which results in creation of assets is included in fixed assets and depreciation is provided accordingly.

(H) Inventories

(i) Raw Materials, Stock-in-trade and work-in-progress are valued at Cost or Net realisable value whichever is lower.

(ii) Cost is determined on FIFO basis in the case of Raw Material & Work in Progress and on weighted average basis in the case of Stock-in- Trade.

(I) Foreign Exchange Transactions

(i) Foreign Currency transactions are accounted for at the rate prevailing on the date of transaction, in the case of income & expenditure items except wherever booked forward/options.

(ii) Monetary assets and liabilities are translated in Indian Rupees at the Exchange rate prevailing at the Year end as notified by FEDAI

(iii) Gain or Loss arising out of translation / conversion / realisation is taken Credit for or charged to profit & Loss Account, except those relating to acquisition of fixed assets which are debited to fixed assets as on the date of settlement of account.

(J) Contingent Liabilities

(i) Contingent Liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved

(K) Expenses

(i) All the expenses are accounted for accrual basis except purchase/Sale Tax/Vat Determined on finalisation of the assessment of relevant year.

 
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