Accounting Policies of Univa Foods Ltd. Company

Mar 31, 2015

1) System of Accounting

The Company generally adopts the mercantile system of accounting.

2) Fixed Assets

(i) The fixed assets acquired, if any, during the current year are stated at cost plus incidental ; expenses relating to the same.

(ii) The Major part of the fixed assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the previous years. Since all the fixed assets have been sold therefore the going concern concepts of the business has been affected.

3) Depreciation

(i) Depreciation will be provided on the basis of useful life of assets as specified in Schedule II to the ' Companies Act, 2013.Though during the current year there are no fixed assets on which depreciation need to be calculated.

(ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold/ disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.

4) Investments

(i) The investments in unquoted and quoted shares (except in subsidiaries) are stated at cost. The subsidiaries investments were shown at token value of Rs. 1/- by writing off the investment in earlier years. During the previous year the company has sold its stake in subsidiary namely Polar Finance Limited therefore to the extent of sale value the company has written back the investments which has been written off in earlier year.

(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books.

(iii) Any other investment in share & mutual fund held if any are for long term period and diminution, if any, is temporary in nature and hence not provided.

5) Retirement Benefits

Since the last few years there are' no major operations in the company and also there are no employees in the company and therefore other than any old liabilities if any which is not known, the provisions of The Payment of*Gratuity Act, 1972, Leave Salary & The Employees Provident Fund & Miscellaneous Provision Act, 1952 are not applicable.

6) Sales & Business Segments

The company has no sales from business of food or catering or hotel and no other new activity during the current year ended 31st March 2015 is commenced and therefore segment reporting is not applicable for the current year. The only income is pertaining to interest income from Inter Corporate deposits.

7) Inventories

During the current year there are no Purchases & Sales and therefore no inventories are held.

8) Revenue Recognition

The revenue is recognized as and when it is accrued.

9) Borrowing Costs

Borrowing costs attributable to construction of asset are capitalized as a part of the cost of such asset upto date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

10) Accounting for Taxes on Income

i) Provision for the current tax is made on the assessable income at the relevant assessment year. ii) Deferred Tax is recognized, on timing differences, being* the difference between taxable income

and accounting income that originate in one period and capable of reversal in one or more subsequent periods.

iii) Deferred Tax assets are recognized if there is reasonable certainty that there will be sufficient future profits available to realize such assets.

11) Provisions, 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 events and it is probable that there will be an outflow of recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

12) Earning per Share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

13) Cash Flow Statement

Cash flow Statement is prepared under the Indirect Method.

14) Initial Margin for Commodity Instruments Contract

Purchase and sale of commodity transaction is recorded at the price which is fixed between the buyer and the seller at the future date including the contracts open at the balance sheet date. The income is recognized when the contract term expires. The income is classified as other income from commodity gains.

Of the above (a) 99,800 Equity Shares of the face Value of Rs.10/- each were issued as fully-paid shares for consideration other than cash vide Memorandam of Understanding executed on 16-09-91 with M/s. Rugby Hotel, the erstwhile firm which was taken over by the company. (b) 2,940,000 Equity Shares were issued, as fully paid Bonus Shares on 29-9-93 by capitalizing ; revaluation reserve of Rs. 19,621,140/- and Capital reserve of Rs. 9,778,860/-.

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Mar 31, 2014

1) System of Accounting

The Company generally adopts the mercantile system of accounting.

2) Fixed Assets

(i) The fixed assets acquired, if any, during the current year are stated at cost plus incidental expenses relating to the same.

(ii) The Major part of the fixed assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the previous years. Since all the fixed assets have been sold therefore the going concern concepts of the business has been affected.

3) Depreciation

(i) Depreciation is provided under the Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided prorata on monthly basis.

(ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold/ disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.

4) Investments

(i) The investments in unquoted and quoted shares (except in subsidiaries) are stated at cost. The subsidiaries investments were shown at token value of Rs. 1/- by writing off the investment in earlier years. During the current year the company has sold its stake in subsidiary namely Polar Finance Limited therefore to the extent of sale value the company has written back the investments which has been written off in earlier year.

(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books.

(iii) Any other investment in share & mutual fund held if any are for long term period and diminution, if any, is temporary in nature and hence not provided.

5) Retirement Benefits

Since the last few years there are no major operations in the company and also there are no employees in the company and therefore other than any old liabilities if any which is not known, the provisions of The Payment of Gratuity Act, 1972, Leave Salary & The Employees Provident Fund & Miscellaneous Provision Act, 1952 are not applicable.

6) Sales & Business Segments

The company has no sales from business of food or catering or hotel and no other new activity during the current year ended 31st March 2014 is commenced and therefore segment reporting is not applicable for the current year. The only income is pertaining to other income during the current year.

7) Inventories

During the current year, there are no Purchases & Sales and therefore no inventories are held.

8) Revenue Recognition

The revenue is recognised as and when it is accrued.

9) Borrowing Costs

Borrowing costs attributable to construction of asset are capitalized as a part of the cost of such asset upto date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

10) Accounting for Taxes on Income

i) Provision for the current tax is made on the assessable income at the relevant assessment year.

ii) Deferred Tax is recognised, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods. iii) Deferred Tax assets are recognised if there is reasonable certainty that there will be sufficient future profits available to realise such assets.

11) Provisions, 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 events and it is probable that there will be an outflow of recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

12) Earning per Share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes ) by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

13) Cash Flow Statement

Cash flow Statement is prepared under the Indirect Method.

14) Initial Margin for Commodity Instruments Contract

Purchase and sale of commodity transaction is recorded at the price which is fixed between the buyer and the seller at the future date including the contracts open at the balance sheet date. The income is recognised when the contract term expires. The income is classified as other income from commoditiy gains.

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Mar 31, 2013

1) System of Accounting

The Company generally adopts the mercantile system of accounting.

2) Fixed Assets

(i) The fixed assets acquired, if any, during the current year are stated at cost plus incidental expenses relating to the same.

(ii) The Major part of the fixed assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the previous years. Since all the fixed assets have been sold therefore the going concern concepts of the business has been affected.

3) Depreciation

(i) Depreciation is provided under the Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided prorate on monthly basis. (ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold/ disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.

4) Investments

(i) The investments in unquoted and quoted shares (except in subsidiaries) are stated at cost. The subsidiaries investments are shown at token value of Rs. 1/- by writing off the investment in earlier years. During the current year the company has sold one subsidiary namely Jai Thacker Land Development therefore to the extent of sale value the company has written back the investments which has been written off in earlier year.(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books. (iii) The Company is currently having investment in subsidiaries namely, Polar Finance Ltd. The investment in subsidiary Jai Thacker Land development Ltd has been sold as on 30.09.2012(iv) Any other investment in share & mutual fund held if any are for long term period and diminution, if any, is temporary in nature and hence not provided.

5) Retirement Benefits

Since the last few years there are no major operations in the company and also there are no employees in the company and therefore other than any old liabilities if any which is not known, the provisions of The Payment of Gratuity Act, 1972, Leave Salary & The Employees Provident Fund & Miscellaneous Provision Act, 1952 are not applicable.

6) Sales & Business Segments

The company has no sales from business of food or catering or hotel and no other new activity during the current year ended 31st March 2013 is commenced and therefore segment reporting is not applicable for the current year. The only income is pertaining to other income during the current year.

7) Inventories

During the current year, there are no Purchases & Sales and therefore no inventories are held.

8) Revenue Recognition

The revenue is recognized as and when it is accrued.

9) Borrowing Costs

Borrowing costs attributable to construction of asset are capitalized as a part of the cost of such asset up to date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

10) Accounting for Taxes on Income

i) Provision for the current tax is made on the assessable income at the relevant assessment year. ii) Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods. iii) Deferred Tax assets are recognized if there is reasonable certainty that there will be sufficient future profits available to realize such assets.

11) Provisions, 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 events and it is probable that there will be an outflow of recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

12) Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes ) by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

13) Cash Flow Statement

Cash flow Statement is prepared under the Indirect Method.

14) Initial Margin for Commodity Instruments Contract

Purchase and sale of commodity transaction is recorded at the price which is fixed between the buyer and the seller at the future date including the contracts open at the balance sheet date. The income is recognized when the contract term expires. The income is classified as other income from commodity gains.

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Mar 31, 2012

1) System of Accounting

The Company generally adopts the mercantile system of accounting.

2) Fixed Assets

(i) The fixed assets acquired, if any, during the current year are stated at cost plus incidental expenses relating to the same.

(ii) The Major part of the fixed assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the previous years. Since all the fixed assets have been sold therefore the going concern concepts of the business has been affected.

3) Depreciation

(i) Depreciation is provided under the Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided Prorate a on monthly basis.

(ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold/ disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.

4) Investments

(i) The investments in unquoted and quoted shares (except in subsidiaries) are stated at cost. The subsidiaries investments are shown at token value of Rs. 1/- by writing off the investment in earlier years.

(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books.

(iii) The Company is currently having investment in subsidiaries namely, Polar Finance Ltd and Jai Thacker Land Development Ltd.

(iv) Any other investment in share & mutual fund held, if any, are for long term period and diminution, if any, is temporary in nature and hence not provided.

5) Retirement Benefits

Since the last few years there are no major operations in the company and also there are no employees in the company and therefore other than any old liabilities, if any, which is not known, the provisions of The Payment of Gratuity Act, 1972, Leave Salary & The Employees Provident Fund & Miscellaneous Provision Act, 1952 are not applicable.

6) Sales & Business Segments

The company has no sales from business of food or catering or hotel and no other new activity during the current year ended 31st March 2012 is commenced and therefore segment reporting is not applicable for the current year. The only income is pertaining to other income during the current year.

7) Inventories

During the current year, there are no Purchases & Sales and therefore no inventories are held.

8) Revenue Recognition

The revenue is recognised as and when it is accrued.

9) Borrowing Costs

Borrowing costs attributable to construction of asset are capitalized as a part of the cost of such asset upto date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

10) Accounting for Taxes on Income

i)Provision for the current tax is made on the assessable income at the relevant assessment year.

ii) Deferred Tax is recognised, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods.

iii) Deferred Tax assets are recognised if there is reasonable certainty that there will be sufficient future profits available to realise such assets.

11) Provisions, 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 events and it is probable that there will be an outflow of recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

12) Earning per Share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes ) by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

14) Cash Flow Statement

Cash flow Statement is prepared under the Indirect Method.

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Mar 31, 2011

(a) System of Accounting

The Company generally adopts the mercantile system of accounting.

(b) Fixed Assets

(i) The fixed assets acquired, if any, during the current year are stated at cost plus incidental expenses relating to the same.

(ii) The Major part of the fixed assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the previous years. Since all the fixed assets have been sold therefore the going concern concepts of the business has been affected.

(c) Depreciation

(i) Depreciation is provided under the Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided prorata on monthly basis.

(ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold/ disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.

(d) Investments

(i) The investments in unquoted and quoted shares (except in subsidiaries) are stated at cost. The subsidiaries investments are shown at token value of Rs. 1/- by writing off the investment in earlier years.

(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books.

(iii) The Company is currently having investment in subsidiaries namely, Polar Finance Ltd and Jai Thacker Land Development Ltd.

(iv) Any other investment in share & mutual fund held if any are for long term period and diminution, if any, is temporary in nature and hence not provided.

(e) Retirement Benefits

Since the last few years there are no major operations in the company and also there are no employees in the company and therefore other than any old liabilities if any which is not known, the provisions of The Payment of Gratuity Act, 1972, Leave Salary &The Employees Provident Fund & Miscellaneous Provision Act, 1952 are not applicable.

(f) Sales

The company has no sales from business of food or catering or hotel and no other new activity during the current year ended 31st March 2011 is commenced and therefore segment reporting is not applicable for the current year.

(g) Inventories:

During the current year, there are no Purchases & Sales and therefore no inventories are held.

(h) Revenue Recognition Timeshare Units sold

The company has sold the Hotel at Matheran during the previous years and correspondingly decided to settle all Timeshare deposit holder's amount. No revenue effect on account of Timeshare sale is therefore applicable during the current year.

(i) Borrowing Costs

Borrowing costs attributable to construction of asset are capitalized as a part of the cost of such asset upto date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

(j) Accounting for Taxes on Income

Provision for the current tax is made on the assessable income at the relevant assessment year.

Deferred Tax is recognised, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods.

Deferred Tax assets are recognised if there is reasonable certainty that there will be sufficient future profits available to realise such assets.

(k) Business Segments

Till the previous years, the company was engaged in the business of hoteliring, providing catering services and preparing and selling of sweet and savories. Hence the reportable business segments are Hotel, Catering Services and Sweet business. Since last few years there is no business segment except company is earning other income.

(l) Provisions, 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 events and it is probable that there will be an outflow of recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized, nor disclosed in the financial statements.

(m) Earning per Share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes } by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

(n) Cash Flow Statement:

Cash flow Statement is prepared under the Indirect Method.

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Mar 31, 2010

(a) System of Accounting

The Company generally adopts the mercantile system of accounting.

(b) Fixed Assets

(i) The fixed assets acquired, if any, during the current period are stated at cost plus incidental expenses relating to the same. (ii) The Major part of the fixed, assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the current year. Since all the fixed assets have been sold off therefore the going concern concepts of the business has been affected.

(c) Depreciation

(i) Depreciation is provided under the Straight Line. Method at the rate specified in Schedule XIV to the Companies Act, 1956 Depreciation on additions is provided prorata on monthly basis.

(ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold / disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.



(d) Investments

(i) Original investments are stated at cost except that bonus shares received on investments have been capitalised at face value by crediting capital reserve account in earlier years and the said capitalisation is reversed in the year 30th September, 2005 by debiting Profit &Loss a/c.

(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books. AN the investments in subsidiaries have been brought down to Rs.1/- in earlier years.

(iii) The Company is currently having investment in subsidiaries namely, Polar Finance Ltd and Jai Thacker Land Development Ltd.

(iv) Any other investment in share & mutual fund held if any are for long term period and diminution, if any, is temporary in nature and hence not provided.

(e) Retirement Benefits

i. Till the previous period ended 31st December 2007, company was accounting gratuity on payment basis which was not in accordance with AS15, but during the current period ended 31st March 2010, there are currently no employees working with the company as explained by the management. As per management, the company has paid and discharged all the gratuity liability determined by the company during the previous periods. But in absence of actuarial valuation certificate, relating to previous period it is unascertained that whether the full gratuity liability is discharged or not.

ii.Though there are no employee but Leave Salary encashment if any relation to past employee is not provided & the amount is unascertained.

(f) Sales

The company has no sales from business of food or catering or hotel and no other new activity during the current period ended 31st March 2010 is commenced and therefore segment reporting is not applicable for the current year.

(g) Inventories:

During the current period, there are no Purchases & Sales and therefore no inventories are held.

(h) Revenue Recognition Timeshare Units sold

The company has sold the Hotel at Matheran during the last period and correspondingly decided to settle all Timeshare deposit holders amount. No revenue effect on account of Timeshare sale is therefore applicable during the current period.

(i) Borrowing Costs

Borrowing costs attributable to construction of asset are capatalised as a part of the cost of such asset upto date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

(j) Accounting for Taxes on Income

Provision for the current tax is made on the assessable income at the Relevant assessment year. Deferred Tax is recognised, on timing differences, being the Difference between taxable income and accounting income that Originate in one period and capable of reversal in one or more Subsequent periods.

Deferred Tax assets are recognised if there is reasonable certainty that there will be sufficient future profits available to realise such assets.

(k) Business Segments

Till the previous years, the company was engaged in the business of hotelirirtg, providing catering services and preparing and selling of sweet and savories. Hence the reportable business segments are Hotel, Catering Services and Sweet business. Since last two years there is no business segment except company is earning other income.

(I) Provisions, 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 events and it is probable that there will be an outflow of recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

(m) Earning per Share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes ) by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

(n) Cash Flow Statement:

Cash flow Statement is prepared under the Indirect Method.