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Accounting Policies of Divya Jyoti Industries Ltd. Company

Mar 31, 2015

1A. General Corporate Information

Divya Jyoti Industries Limited (the Company) is a Public Limited Company incorporated under the provisions of Company Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in Solvent Extraction & Refinery of Soya Oil.

a Basis of Preparation of Financial Statements

The financial statements have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standard) Rule, 2006 and relevant provisions of the Companies Act,1956. The financial statements are prepared on historical cost convention on an accrual basis, to the extend applicable. The Accounting Policies have been consistently applied by the Company.

b Use of Estimates

The preparation of financial statements is in conformity with the generally accepted accounting principles (GAAP) requires estimates and assumptions to be made that affect the reportable amount of assets and liabilities on the date of financial statements and the reportable amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the year in which the results are known / materialized.

c Revenue Recognition

Sales are recognized at the time of dispatch of goods from factory and are recorded including excise duty but exclusive of sales tax and trade discount wherever applicable. Dividend income is recognized when right to receive is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

goods lying at factory. Sales tax / Value added tax paid is charged to Profit and Loss Account.

e Investment

Long Term Investments are stated at cost.

f Inventories

Inventories are stated at Lower of Cost and Net Realizable Value using FIFO method. The cost of finished goods and Stock in Process comprising of Raw Material, Direct labour, other direst cost and related production overhead up to the relevant stage of completion. By Products and waste are value at Net realizable value.

g Borrowing Cost

Borrowing costs that are attributable to the acquisition or constructions of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue in the period in which they are incurred.

h Tangible Fixed Assets

Tangible Assets are stated at acquisition cost, net of accumulated depreciation and accumulated impairment Loss. Tangible Assets not ready for the intended use from the date of date of Balance Sheet are disclosed as 'Capital Work in Progress.

Losses and/or Gains arising from disposal of tangible assets, which are carried at cost, are recognized in the Statement of Profit and Loss.

Depreciation is provided on based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013, with the exception of assets depreciated , based on technical evaluation.

Depreciation on assets added/disposed off during the year has been provided on prorata Basis, with reference to the month of addition/disposal.

i Taxation

Income Tax

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income-tax Act, 1961. Advance tax and provision for current income tax are presented in the balance sheet after off- setting advance tax paid and income tax provision. Tax Expenses for the period comprising of Current Tax and Deferred tax is measured as per the present taxation laws of the country. MAT

Minimum alternative tax (MAT) is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Group and the asset can be measured reliably. Deferred Tax

In accordance with Accounting Standated -22 on "Accounting for Taxes on Income". the deferred tax for timing differences is accounted for using the tax rate and laws that have been enacted on substantially enacted by the Balance Sheet

j Earning per share

The Company reports basic and diluted earnings per equity share in accordance with Accounting Standard 20 – "Earnings per share". Basic earnings per equity share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year, adjusted for events such as bonus shares and any other conversion of equity share. The Company does not have any diluted equity share, hence Basic and Dilutive earning per share is same.

k Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions or that approximate the actual rate at the date of transaction. Any income or expenses on account of exchange difference on settlement is recognized in the Profit & Loss Account, if it is related to revenue account and if related to fixed Assets and liabilities, the same is adjusted to the acquisition cost of such assets and depreciated over its remaining useful life.

l Provisions And Contingent Liabilities And Contingent Assets

Provisions involving degree of estimation in measurement are recognized when there is a present obligation as a result of past results and it is probable that there will be an outflow of resources.

Contingent liabilities are disclosed, unless the possibility of an outflow of resource embodying the economic benefit is remote.

Contingent assets are neither recognized nor disclosed in the financial statements.

Provisions, contingent liabilities, contingent assets are reviewed at each balance sheet date.

m Cash and Cash Equivalents

Cash and Cash Equivalents for the purpose of cash flow statements comprise cash at bank and Cash in hand and Balances in Deposit accounts with banks having original maturities of 12 months or less.

n Employee Benefits

Defined Contribution Plan: Company's contributions paid/payable during the year to provident fund, employee state insurance scheme are recognized during the period in which the employee renders the related services. Defined Benefit Plan: Liability in respect of Employees' Group Gratuity Fund Scheme are funded by Life Insurance Corporation of India.

o Impairment

Assessment for impairment is done at each Balance Sheet date. Wherever events or changes in circumstances indicate the carrying cost of asset exceeds its recoverable value, an impairment loss is charged to Profit & Loss Account in the year in which an asset is identified as impaired.

p Revenue recognition

Revenue from sales of goods is recognized when the substantial risk and rewards of ownership in the goods are transfer to the buyer. Sales are recognized net off Trade discounts, rebates, Sales Tax and Excise Duty

q Cash Flow Statement

The Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard- 3 on "Cash Flow Statement"


Mar 31, 2014

(a) Basis of Preparation of Financial Statements

The financial statements have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standard) Rule, 2006 and relevant provisions of the Companies Act,1956. The financial statements are prepared on historical cost convention on an accrual basis. The Accounting Policies have been consistently applied by the Company.

(b) Use of Estimates

The preparation of financial statements is in comformity with the generaly accepted accounting principles (GAAP) requires estimates and assumptions to be made that affect the reportable amount of assets and liabilities on the date of financial statements and the reportable amount of revenue and expenses during the reporting period. Difference btween the actual results and estimates are recognized in the year in which the results are known / materialised.

(c) Revenue Recognition

Sales are recognised at the time of dispatch of goods from factory and are recorded including excise duty but exclusive of sales tax and trade discount wherever applicable. Dividend income is recognized when right to receive payment is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and interest rate applicable.

(d) Excise Duty

Excise duty is accounted on the basis of both, payments made in respect of goods cleared as also provision made for goods lying at factory. Sales tax / Value added tax paid is charged to Profit and Loss Account.

(e) Investment

Long-term Investments are stated at cost.

(f) Inventories

Cost of inventories comprise of cost of purchase, labour cost. Raw Material, Stores & Spares and Packing Materials are vaued at cost using FIFO method. Finished Goods and Stock in Process are vaued at Net Realisable Value.

(g) Borrowing Cost

Borrowing costs that are attributable to the acquisition or constructions of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the statement of Profit and Loss in the period in which they are incurred.

(h) Tangible Fixed Assets

(i) Leasehold Land is stated at Cost.

(ii) All Fixed Assets are stated at cost less depreciation, wherever applicable. Cost comprises acquisition costs and any other attributing cost of bringing the assets to its working condition for its intended use but excluding taxes and duties there on, wherever applicable. (iii) Depreciation has been calculated on straight line method at the rates an manner specified under the Schedule XIV of the Companies Act, 1956.

(i) Taxation

(i) Income Tax: Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income-tax Act, 1961. Advance tax and provision for current income tax are presented in the balance sheet after off-setting advance tax paid and income tax provision.

(ii) MAT: Minimum alternative tax (MAT) is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Group and the asset can be measured reliably.

(iii)Deferred Tax: In accordance with Accounting Standared -22 on "Accounting for Taxes on Income". the deferred tax for timing differences is accounted for using the tax rate and laws that have been enacted on substantially enacted by the Balance Sheet date.

(j) Earning per share

The Company reports basic and diluted earnings per equity share in accordance with Accounting Standard 20 – "Earning per share". Basic earning per equity share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. The Company does not have any diluted equity share, hence Basic and Dilutive earning per share is same.

(k) Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions or that approximate the actual rate at the date of transaction. Any income or expenses on account of exchange difference on settlement is recognised in statement of the Profit & Loss Account.

(l) Provisions And Contingent Liabilities And Contingent Assets

(i) Provisions involving degree of estimation in measurement are recognised when there is a present obligation as a result of past results and it is probable that there will be an outflow of resources.

(ii) Contingent liabilities are disclosed, unless the possibility of an outflow of resource embodying the economic benefit is remote.

(iii) Contingent assets are neither recognized nor disclosed in the financial statements.

(iv) Provisions, contingent liabilities, contingent assets are reviewed at each Balance Sheet date.

(m) Cash and Cash Equivalents

Cash and Cash Equivalents for the purpose of cash flow statements comprise cash at bank and Cash in hand and balances in deposit accounts with banks having original maturities of 12 months or less.

(n) Employee Benefits

(i) Defined Contribution Plan: The Company makes specified monthly contribution towards Provident Fund and Employees State Insurance Scheme. The Company''s Contributions is recognised as an expenses in the statement of Profit & Loss during the period in which the employee renders the related services.

(ii) Defined Benefit Plan: The Liability in respect of Employees'' Group Gratuity Fund Scheme is calculated using the Projected Unit Credit Method. Actuarial Gain and Loss is charged to the Statement of Profit & Loss.

(o) Impairment

Wherever events or changes in circumstances indicate the carrying cost of asset exceeds its recoverable value, an impairment loss is charged to Profit & Loss Account in the year in which an asset is identifyied as imapired.

(p) Cash Flow Statement

The Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard- 3 Cash Flow Statement.


Mar 31, 2013

(a) Basis of Preparation of Financial Statements

The financial statements have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standard) Rule, 2006 and relevant provisions of the Companies Act,1956. The financial statements are prepared on historical cost convention on an accrual basis. The Accounting Policies have been consistently applied by the Company.

(b) Use of Estimates

The preparation of financial statements is in comformity with the generaly accepted accounting principles (GAAP) requires estimates and assumptions to be made that affect the reportable amount of assets and liabilities on the date of financial statements and the reportable amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the year in which the results are known / materialised.

(c) Revenue Recognition

Sales are recognised at the time of dispatch of goods from factory and are recorded including excise duty but exclusive of sales tax and trade discount wherever applicable. Dividend income is recognized when right to receive is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. payments made in respect of goods cleared as also provision made for goods lying at factory. Sales tax / Value added tax paid is charged to Profit and Loss Account.

(e ) Investment

Long Term Investments are stated at cost.

(f) Inventories

Cost of inventories comprise of cost of purchase, labour cost. Raw Material, Stores & Spares and Packing Materials are valued at cost using FIFO method. Finished Goods and Stock in Process are valued at Net Realisable Value.

(g) Borrowing Cost

Borrowing costs that are attributable to the acquisition or constructions of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue in the period in which they are incurred.

(h) Tangible Fixed Assets

(i) Leasehold Land is stated at Cost.

(ii) All Fixed Assets are stated at cost less depreciation, wherever applicable. Cost comprises acquisition costs and any other attributing cost of bringing the assets to its working condition for its intended use but excluding taxes and duties there on, wherever applicable. (iii) Depreciation has been calculated on straight line method at the rates an manner specified under the Schedule XIV of the Companies Act, 1956.

(i) Taxation

(i) Income Tax Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income-tax Act, 1961.

(ii) Advance tax and provision for current income tax are presented in the balance sheet after off-setting advance tax paid and income tax provision.

(iii) MAT Minimum alternative tax (MAT) is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Group and the asset can be measured reliably.

(iv) Deferred Tax In accordance with Accounting Standard -22 on "Accounting for Taxes on Income". the deferred tax for timing differences is accounted for using the tax rate and laws that have been enacted on substantially enacted by the Balance Sheet date.

Earning per share

The Company reports basic and diluted earnings per equity share in accordance with Accounting Standard 20 – "Earning per share". Basic earning per equity share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. The Company does not have any diluted equity share, hence Basic and Diluted earning per share is same.

(k)Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions or that approximate the actual rate at the date of transaction. Any income or expenses on account of exchange difference on settlement is recognised in the Profit & Loss Account.

(l) Provisions And Contingent Liabilities And Contingent Assets

(i) Provisions involving degree of estimation in measurement are recognised when there is a present obligation as a result of past results and it is probable that there will be an outflow of resources. (ii) Contingent liabilities are disclosed, unless the possibility of an outflow of resource embodying the economic benefit is remote. (iii) Contingent assets are neither recognized nor disclosed in the financial statements. (iv) Provisions, contingent liabilities, contingent assets are reviewed at each balance sheet date.

(m)Cash and Cash Equivalents

Cash and Cash Equivalents for the purpose of cash flow statements comprise cash at bank and Cash in hand and Balances in Deposit accounts with banks having original maturities of 12 months or less.

(n)Employee Benefits

(i) Defined Contribution Plan: Company''s contributions paid/payable during the year to provident fund, employee state insurance scheme are recognised during the period in which the employee renders the related services. (ii) Defined Benefit Plan: Liability in respect of Employees'' Group Gratuity Fund Scheme are funded by Life Insurance

Corporation of India.

(o)Impairment

Wherever events or changes in circumstances indicate the carrying cost of asset exceeds its recoverable value, an impairment loss is charged to Profit & Loss Account in the year in which an asset is identified as impaired.

(p) Cash Flow Statement

Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard- 3 Cash Flow Statement.


Mar 31, 2010

1. Accounting Convention

The financial statement has been prepared and presented under historical cost convention on the accrual basis of accounting in accordance with the accounting principal generally accepted in India ("GAAP") and comply with the mandatory accounting standard ("AS") issued by the Institute of Chartered Accountants of India to the content applicable and with the relevant provision of the Companies Act 1956.

2. Fixed Assets

a. Fixed assets are carried at cost of acquisition or construction less accumulated depreciation. The cost of fixed assets includes taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets.

b. Advances paid towards the acquisition of the fixed assets outstanding at Balance Sheet date are disclosed under capital work in progress.

3. Depreciation

a. Depreciation on fixed assets is provided on "Straight Line Method".

b. Depreciation is provided at the rates and in the manner specified in schedule XIV of the Companies Act 1956.

4. Inventories

a. Inventories are valued on FIFO basis, as fallows:



Raw material - At cost price

Finished goods - At market price

Stores & Spares - At cost price

Packing material - At cost price



b. Inventories comprise of raw material, stores & spares, consumable and finished goods.

5. Investment

Investments are carried at cost.

6. Foreign Currency Transactions

Foreign Currency Transactions are recorded using the exchange rates prevailing on the date of the respective transactions. Exchange difference arising on foreign currency transactions settled during the year is recognized in Profit and Loss Account.

7. Revenue Recognition

Revenue from sale of goods is recognized at the point of dispatch of goods.

8. Employee Benefits

a. Contribution to provident fund is charged against revenue.

b. Gratuity liabilities are accounted for on accrual basis.

9. Taxation

Tax expenses are the aggregate of current tax and deferred tax charged or credited in statement of profit & loss for the period.

a. Current tax

The current charge for Income Tax is calculated in accordance with the relevant tax regulations applicable to the company.

b. Deferred tax

Deferred tax charge on credit reflects the tax effect of timing differences between book profit and tax profit for the period. The deferred tax charge on credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted on substantively enacted by the Balance Sheet date.

10. Impairment of Assets

At every balance sheet, the company determines whether the provisions should be made for the impairment loss on fixed assets by considering the indications that the carrying amount of the assets exceeds the recoverable amount as per recognition and measurement principles laid down in AS-28 "Impairment of Assets". No impairment of assets is identified during the review carried out in the current year.

11. Cash Flows

Cash Flows are reported using the indirect method, whereby profit before tax in adjusted for the effects of transactions of a non-cash nature and any deferred or accruals of part or future cash receipts or payments. The cash flows from regular revenue generating, financing and investing activities of the company are segregated.

12. Earning per share

The earning considered in ascertaining the companys Basic EPS is the attributable Net Profit or Loss to the equity shareholders as per AS-20 "Earnings Per Share". The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the period.

13. Provisions & Contingent Liabilities

The company creates a provision when there is a present obligation as a result of past events that probably requires an outflow of resources and reliable estimates can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, requires an outflow of resources.

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