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Accounting Policies of Indo Asian Foods and Commodities Ltd. Company

Mar 31, 2015

A. Basis of preparation of financial statements

The financial statements have been prepared in accordance with the generally accepted accounting principles in India. (Indian GAAP) to comply with all material respects with the accounting standards notified under section 133 of the Companies act 2013 read with rule 7 of the companies (Accounts) Rules, 2014. The accounting policies adopted in preparation of the financial statements are consistent with those followed in previous year unless otherwise stated below.

b. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

c. Revenue recognition

Revenue is recognized only when there is no significant uncertainty as to the measyrability / collectability of the amounts. Export Revenue in foreign currency is accounted for at the exchange rate prevailing at the time of sale or service. Gain/Loss arising out of variances in the exchange rates is recognized as income / expenditure of the year.

d. Fixed assets and capital work-in-progress

Fixed assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to put to use.

e. Depreciation

The Company provides depreciation for tangible assets on straight line method over the useful lives of assets specified in Schedule II of Companies act, 2013. Depreciation for assets purchased and sold during are period proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a straight line basis, commencing form the date the asset is available to the company for its use. .

f. Impairment

i. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/extfemal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

ii. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

g. Inventories

Inventories are valued as under:

Components and consumables are valued at lower, of cost. Work-in-progress and finished goods are valued at lower of cost and net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

h. Retirement and other employee benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

i. Income taxes

Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961. Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by balance sheet date.

j. Foreign currency transaction

i. Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii. Conversion

Foreign currency monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of monetary items which are covered by foreign exchange contracts, the difference between the original entry dates to forward contract date is recognized as an exchange difference.

iii. Exchange differences

Exchange differences arising on the settlement of monetary items, or on reporting such, monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

iv. Foreign currency Transactions.

Particulars Current Year Previous Year

Earningsin Foreignexchange NIL NIL

Expenditures Foreignexchange NIL NIL


Mar 31, 2014

A Basis of preparation of financial statements:

The Company follows the Mercantile system of Accounting and recognizes Income and Expenditure on accrual basis. The Provisional accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting Principles.

b Presentation and disclosure of financial statements:

Previous Year figure have been regrouped and or reclassified wherever necessary. c Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

2 Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairment losses if any.

3 Depreciation

Depreciation on fixed assets provided on Straight Line method as per rates specified in Schedule XIV of the Companies Act, 1956.

4 Invsetments

The investments are long term which are unquoted shares and are valued at cost to the Company.

5 Revenue Recognition Contract Revenue:

Contract Revenue (net of taxes and duties) is recognized at the reporting date of the financial statements under percentage of completion method. However, during the year there are no Contract Revenue.

6 Taxes on Income

As per AS 22 (Accouting for Taxes on income issued by ICAI, the Deferred Tax Asset on adjustment for the current year''s operation as at 31.03.2014 is Rs.4,081 /-and the Net DTA (Assets) reflected in Balance Sheet is Rs.2,62,666/-.

7 Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are disclosed when the Company has possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.


Mar 31, 2013

A Basis of preparation of financial statements:

The Company follows the Mercantile system of Accounting and recognises Income and Expenditure on accrual basis. The Provisional accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting Principles.

b Presentation and disclosure of financial statements:

During the year ended 31 March, 2013, the revised Schedule VI was applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. Previous Year figure have been regrouped and or reclassified wherever necessary.

c Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon managements` best knowledge of current events and actions, actual results could differ from these estimates.


Mar 31, 2012

A) Accounting convention:

Accounts are maintained on Historic cost on accrual basis as a going concern and are in accordance with The Companies Act, 1956.

b) Fixed Assets.

Fixed assets are valued at cost less depreciation. Depreciation is computed at the rates specified in schedule XVI of the Companies Act, 1956 under written down value method and on additions on pro-rata as provided in that schedule.

c) Investments:

The investments are long term which are unquoted shares and are valued at cost to the Company.

d) Extra - ordinary items wherever material are disclosed separately.


Mar 31, 2010

A) Accounting convention:

Accounts are maintained on Historic cost on accrual basis as a going concern and are in accordance with The Companies Act, 1956.

b) Fixed Assets.

Fixed assets are valued at cost less depreciation. Depreciation is computed at the rates specified in schedule XIV of the Companies Act, 1956 under written down value method and on additions on pro- rata as provided in that schedule.

c) Inventories:

Inventories are valued at cost of acquisition to the Company plus developmental expenses incurred thereon

d) Investments:

The investments are long term which are unquoted shares and are valued at cost to the Company.

e) Extra-ordinary items wherever material are disclosed separately.