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Accounting Policies of Duncans Industries Ltd. Company

Sep 30, 2014

1.1 Basis of Accounting:

The Accounts have been prepared on the historical cost basis adjusted by the revaluation of certain Fixed Assets, in accordance with the provision of the Companies Act, 1956 and accounting standards notified vide Companies (Accounting Standards) Rules, 2006.

All expenses and income, unless specifically stated to be otherwise, have been accounted for on mercantile basis and are consistent with generally accepted accounting principles.

1.2 Use of Estimates:

The preparation of financial statements require the management to make estimates and assumptions that effect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the balance sheet date and the reported amounts of income and expenses during the period. Differences between the actual results and the estimates are recognised for the relevant period as and when the results are materialised.

1.3 Fixed Assets and Depreciation:

Fixed Assets as revalued from time to time are stated at revalued amounts less depreciation.

Fixed Assets other than the above are stated at cost less depreciation.

Expenditure on new tea planting is capitalised. In the case of new tea areas taken up as projects, all expenditure till the plantation reaches the full bearing stage is capitalised.

Cost of up-keep and maintenance of young tea is charged to revenue.

Depreciation on Fixed Assets, including on revaluation, has been provided for as under:

For additions upto December, 1975, on Reducing Balance Method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956 and subsequently on Straight Line Method in keeping with the aforesaid Schedule XIV or at the rates applicable at the time of installation/acquisition thereof.

In case of revalued assets, depreciation has been provided on Straight Line Method based on useful life either assessed technically or derived with respect to the rates specified in Schedule XIV to the Companies Act, 1956.

An amount equivalent to the additional charge of depreciation due to revaluation is transferred to Statement of Profit and Loss from Revaluation Reserve.

1.4 Impairment :

Fixed Assets are reviewed at each Balance Sheet date for impairment. In case events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognised whenever the carrying amount of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is greater of assets net selling price or its value in use. An impairment loss is reversed if there has been change in the recoverable amount and such loss either no longer exists or has decreased.

1.5 Investments:

Investments being long term in nature are stated at cost. Diminution in values thereof, other than temporary in nature, are adjusted there from and recognised in the Statement of Profit and Loss.

1.6 Inventories:

Inventories are valued at lower of cost or net realisable value.

Manufacturing costs for tea comprise of material, labour and other appropriate overheads.

Cost of Raw Material, Stores and Spare Parts are valued on weighted average basis.

1.7 Employee Benefits:

Employee benefits are accrued in the year services are rendered by the employees.

Contribution to defined contribution schemes such as Provident and Family Pension Fund etc. are recognized as and when incurred.

Long term employee benefits under defined benefit scheme such as contribution to gratuity, leave, superannuation, provident fund etc. are determined at close of the year at present value of the amount payable using actuarial valuation techniques.

Actuarial gain and losses are recognized in the year when they arise

1.8 Foreign Currency Transactions:

Transactions in foreign currency are accounted for, at the exchange rate prevailing on the date of the transaction. Foreign currency monetary assets and liabilities at the year-end are translated using the closing exchange rates. The loss or gain thereon and also on the exchange differences on settlement of foreign currency transaction during the year are recognised as income or expenses and are adjusted to the Statement of Profit and Loss under respective heads of accounts.

1.9 Research and Development:

Expenditure on research and development (other than those relating to Fixed Assets) including contribution to research associations is charged against the profit for the year in which it is incurred.

1.10 Sales:

Sales are recognised on passing of property in the goods. Consignment sales are accounted for on receipt of the relevant account sales.

1.11 Grants and Subsidies from Government:

Grants from Government relating to Fixed Assets are shown as a deduction from the gross value of Fixed Assets and those in the nature of Project Capital Subsidy, are credited to Capital Reserve. Other Government grants including subsidies, incentives, duty drawback, etc. are credited to Statement of Profit and Loss or deducted from the related expenses.

1.12. Borrowing Cost:

Borrowing cost in relation to the acquisition or construction of a qualifying asset is capitalized as part of the cost of such assets. Other borrowing costs are charged as expenses in the year in which they are incurred.

1.13 Income Tax :

Provision for tax is made for both current and deferred taxes. Current tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing differences, which are capable of reversal in subsequent periods, are recognised using tax rates and tax laws which have been enacted or substantively enacted. Deferred tax assets are not recognised unless there is sufficient assurance for reversal of the same in future years.

1.14 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 provided for but disclosed by way of Notes to the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.


Sep 30, 2013

1.1 Basis of Accounting:

The Accounts have been prepared on the historical cost basis adjusted by the revaluation of certain Fixed Assets, in accordance with the provision of the Companies Act, 1956 and accounting standards notified vide Companies (Accounting Standards) Rules, 2006.

All expenses and income, unless specifically stated to be otherwise, have been accounted for on mercantile basis and are consistent with generally accepted accounting principles.

1.2 Use of Estimates:

The preparation of financial statements require the management to make estimates and assumptions that effect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the balance sheet date and the reported amounts of income and expenses during the period. Differences between the actual results and the estimates are recognised for the relevant period as and when the results are materialised.

1.3 Fixed Assets and Depreciation:

Fixed Assets as revalued from time to time are stated at revalued amounts less depreciation.

Fixed Assets other than the above are stated at cost less depreciation.

Expenditure on new tea planting is capitalised. In the case of new tea areas taken up as projects, all expenditure till the plantation reaches the full bearing stage is capitalised.

Cost of up-keep and maintenance of young tea is charged to revenue.

Depreciation on Fixed Assets, including on revaluation, has been provided for as under:

For additions upto December, 1975, on Reducing Balance Method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956 and subsequently on Straight Line Method in keeping with the aforesaid Schedule XIV or at the rates applicable at the time of installation/acquisition thereof.

In case of revalued assets, depreciation has been provided on Straight Line Method based on useful life either assessed technically or derived with respect to the rates specified in Schedule XIV to the Companies Act, 1956.

An amount equivalent to the additional charge of depreciation due to revaluation is transferred to Statement of Profit and Loss from Revaluation Reserve.

1.4 Impairment :

Fixed Assets are reviewed at each Balance Sheet date for impairment. In case events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognised whenever the carrying amount of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is greater of assets net selling price or its value in use. An impairment loss is reversed if there has been change in the recoverable amount and such loss either no longer exists or has decreased.

1.5 Investments:

Investments being long term in nature are stated at cost. Diminution in values thereof, other than temporary in nature, are adjusted there from and recognised in the Statement of Profit and Loss.

1.6 Inventories:

Inventories are valued at lower of cost or net realisable value.

Manufacturing costs for tea comprise of material, labour and other appropriate overheads.

Cost of Raw Material, Stores and Spare Parts are valued on weighted average basis.

1.7 Employee Benefits:

Employee benefits are accrued in the year services are rendered by the employees.

Contribution to defined contribution schemes such as Provident and Family Pension Fund etc. are recognized as and when incurred.

Long term employee benefits under defined benefit scheme such as contribution to gratuity, leave, superannuation, provident fund etc. are determined at close of the year at present value of the amount payable using actuarial valuation techniques.

Actuarial gain and losses are recognized in the year when they arise.

1.8 Foreign Currency Transactions:

Transactions in foreign currency are accounted for, at the exchange rate prevailing on the date of the transaction. Foreign currency monetary assets and liabilities at the year-end are translated using the closing exchange rates. The loss or gain thereon and also on the exchange differences on settlement of foreign currency transaction during the year are recognised as income or expenses and are adjusted to the Statement of Profit and Loss under respective heads of accounts.

1.9 Research and Development:

Expenditure on research and development (other than those relating to Fixed Assets) including contribution to research associations is charged against the profit for the year in which it is incurred.

1.10 Sales:

Sales are recognised on passing of property in the goods. Consignment sales are accounted for on receipt of the relevant account sales.

1.11 Grants and Subsidies from Government:

Grants from Government relating to Fixed Assets are shown as a deduction from the gross value of Fixed Assets and those in the nature of Project Capital Subsidy, are credited to Capital Reserve. Other Government grants including subsidies, incentives, duty drawback, etc. are credited to Statement of Profit and Loss or deducted from the related expenses.

1.12 Borrowing Cost:

Borrowing cost in relation to the acquisition or construction of a qualifying asset is capitalized as part of the cost of such assets. Other borrowing costs are charged as expenses in the year in which they are incurred.

1.13 Income Tax:

Provision for tax is made for both current and deferred taxes. Current tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing differences, which are capable of reversal in subsequent periods, are recognised using tax rates and tax laws which have been enacted or substantively enacted. Deferred tax assets are not recognised unless there is sufficient assurance for reversal of the same in future years.

1.14 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 provided for but disclosed by way of Notes to the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

1.1 Basis of Accounting:

The Accounts have been prepared on the historical cost basis adjusted by the revaluation of certain Fixed Assets, in accordance with the provision of the Companies Act, 1956 and accounting standards notified vide Companies (Accounting Standards) Rules, 2006.

All expenses and income, unless specifically stated to be otherwise, have been accounted for on mercantile basis and are consistent with generally accepted accounting principles.

1.2 Use of Estimates:

The preparation of financial statements require the management to make estimates and assumptions that effect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the balance sheet date and the reported amounts of income and expenses during the year. Differences between the actual results and the estimates are recognised in the year in which the results become known/materialise.

1.3 Fixed Assets and Depreciation:

Fixed Assets as revalued from time to time are stated at revalued amounts less depreciation.

Fixed Assets other than the above are stated at cost less depreciation.

Expenditure on new tea planting is capitalised. In the case of new tea areas taken up as projects, all expenditure till the plantation reaches the full bearing stage is capitalised.

Cost of up-keep and maintenance of young tea is charged to revenue.

Depreciation on Fixed Assets, including on revaluation, has been provided for as under:

For additions upto December, 1975, on Reducing Balance Method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956 and subsequently on Straight Line Method in keeping with the aforesaid Schedule XIV or at the rates applicable at the time of installation/acquisition thereof.

In case of revalued assets, depreciation has been provided on Straight Line Method based on useful life either assessed technically or derived with respect to the rates specified in Schedule XIV to the Companies Act, 1956.

An amount equivalent to the additional charge of depreciation due to revaluation is transferred to Statement of Profit and Loss from Revaluation Reserve.

1.4 Impairment:

Fixed Assets are reviewed at each Balance Sheet date for impairment. In case events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognised whenever the carrying amount of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is greater of assets net selling price or its value in use. An impairment loss is reversed if there has been change in the recoverable amount and such loss either no longer exists or has decreased.

1.5 Investments:

Investments being long term in nature are stated at cost. Diminution in values thereof, other than temporary in nature, are adjusted there from and recognised in the Statement of Profit and Loss.

1.6 Inventories:

Inventories are valued at lower of cost or net realisable value.

Manufacturing costs for tea comprise of material, labour and other appropriate overheads.

Cost for Raw Material, Stores and Spare Parts are valued on weighted average basis and for the tea stock on First in first out basis.

1.7 Employee Benefits:

Employee benefits are accrued in the year services are rendered by the employees.

Contribution to defined contribution schemes such as Provident and Family Pension Fund etc. are recog- nized as and when incurred.

Long term employee benefits under defined benefit scheme such as contribution to gratuity, leave, super- annuation, provident fund etc. are determined at close of the year at present value of the amount payable using actuarial valuation techniques.

Actuarial gain and losses are recognized in the year when they arise.

1.8 Foreign Currency Transactions:

Transactions in foreign currency are accounted for, at the exchange rate prevailing on the date of the transaction. Foreign currency monetary assets and liabilities at the year-end are translated using the closing exchange rates. The loss or gain thereon and also on the exchange differences on settlement of foreign currency transaction during the year are recognised as income or expenses and are adjusted to the Statement of Profit and Loss under respective heads of accounts.

1.9 Research and Development:

Expenditure on research and development (other than those relating to Fixed Assets) including contribution to research associations is charged against the profit for the year in which it is incurred.

1.10 Sales:

Sales are recognised on passing of property in the goods. Consignment sales are accounted for on receipt of the relevant account sales.

1.11 Grants and Subsidies from Government:

Grants from Government relating to Fixed Assets are shown as a deduction from the gross value of Fixed Assets and those in the nature of Project Capital Subsidy, are credited to Capital Reserve. Other Govern- ment grants including subsidies, incentives, duty drawback, etc. are credited to Statement of Profit and Loss or deducted from the related expenses.

1.12 Borrowing Cost:

Borrowing cost in relation to the acquisition or construction of a qualifying asset is capitalized as part of the cost of such assets. Other borrowing costs are charged as expenses in the year in which they are incurred.

1.13 Income Tax:

Provision for tax is made for both current and deferred taxes. Current tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing differences, which are capable of reversal in subsequent periods, are recognised using tax rates and tax laws which have been enacted or substantively enacted. Deferred tax assets are not recognised unless there is sufficient assurance for reversal of the same in future years.

1.14 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 provided for but disclosed by way of Notes to the Accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

 
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