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Accounting Policies of JR Foods Ltd. Company

Mar 31, 2015

1. FIXED ASSETS

Fixed assets are stated at the values, at which they are acquired, less accumulated depreciation. The value at which fixed assets are acquired includes all related expenses up to the date of putting them to use.

Depreciation is provided as specified in SCHEDULE II to the Companies Act, 2013. Depreciation is provided on prorate basis from the day on which the assets have been put to use and up to the day on which assets have been disposed off.

2. INVESTMENTS

There are no Investments

3. INVENTORIES ;

a) Inventory of raw materials is valued at Cost of Purchase and include all expenses incurred in bringing the materials to their present location and condition.

b) Work in progress and finished goods include conversion cost in addition to the landed cost of raw materials.

c) Finished goods are valued at cost or net realizable value whichever is less on FIFO basis.

4. REVENUE RECOGNITION

a) The Company recognizes income and expenditure on accrual basis. Revenue from Sale of Goods is recognized when goods are dispatched. Sales include Excise duty, freight, insurance, etc., recovered and are net of sales returns.

b) Income from rent is recognized as per the terms and over the period as stated in rental agreements on accrual basis.

c) Commission and other incomes are recognized on accrual basis.

d) Interest is recognized using the Time-Proportion method, based on the rates implicit in the transaction.

e) The revenue and expenditure are accounted on a going concern basis.

5. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions during the year are translated at the exchange rates prevailing on the respective date of inward or outward remittances.

Assets and Liabilities outstanding in foreign currency as on the date of the Balance Sheet are translated at exchange rates prevailing on the last day of the relevant financial year. Differences rising out of such transactions are charged to the respective revenue accounts.

The net gain/loss arising on revenue account during the year in respect of foreign exchange transactions are reckoned in the Statement of Profit and Loss.

6. LEASES

Operating leases rent paid during the year charged to Profit and Loss account, operating lease agreement terminates by one month notice period.

7. RETIREMENT BENEFITS

In accordance with the Payment of Gratuity Act, 1972 the Company provides for gratuity, covering all employees. The company estimates its liability on actuarial valuation basis as of each year-end, and is charged to Profit and Loss Account in accordance with AS-15 (revised). As per the policy of the company there are no Long Term Compensated Absences applicable to the employees of the company.

Employees receive benefits from a provident fund, which is defined contribution plan. Both the employee and the company make monthly contributions to the Regional Provident Fund equal to a specified percentage of the covered employee's salary. The company has no further obligations under the plan beyond its monthly contributions.

8. PROVISION FOR TAXATION

Provision for Current Income Tax is made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. Provision for Deferred Tax Liability is provided on timing differences. The effect of deferred tax assets and liabilities of a change in tax rates is recognised in the income statement.

9. CASH FLOW STATEMENTS

The Cash flow statement is prepared under the indirect method as per AS- 3 "Cash Flow Statements"

10. SEGMENT REPORTING

The entire operations of the company relate to one segment viz Extraction of Oil.

11. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the AS-20- "Earnings per Share"

12. IMPAIRMENT OF ASSETS

All assets other than inventories and deferred tax asset, are reviewed for impairment, wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount.

13. PROVISIONS AND CONTINGENCIES

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made

14. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction 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 its intended use. All other borrowing costs are charged to the profit and loss account. Interests on borrowed funds for the projects are capitalized with the cost of the project as a direct cost.

15. INTANGIBLE ASSETS

There are no intangible assets.


Mar 31, 2014

1. FIXED ASSETS

Fixed assets are stated at the values, at which they are acquired, less accumulated depreciation. The value at which fixed assets areacquired includes all related expenses up to the date of putting them to use.

Depreciation is provided on Straight Line method at the rates specified in SCHEDULE XIV to the Companies Act, 1956. Depreciation is provided on prorate basis from the day on which the assets have been put to use and up to the day on which assets have been disposed off.

2. INVESTMENTS

There are no Investments

3. INVENTORIES

a) Inventory of raw materials is valued at Cost of Purchase and include all expenses incurred in bringing the materials to their present location and condition.

b) Work in progress and finished goods include conversion cost in addition to the landed cost of raw materials.

c) Finished goods are valued at cost or net realizable value whichever is less.

4. REVENUE RECOGNITION

a) The Company recognizes income and expenditure on accrual basis. Revenue from Sale of Goods is recognized when goods are dispatched. Sales include Excise duty, freight, insurance, etc., recovered and are net of sales returns.

b) Income from rent is recognized as per the terms and over the period as stated in rental agreements on accrual basis.

c) Commission and other incomes are recognized on accrual basis.

d) Interest is recognized using the Time-Proportion method, based on the rates implicit in the transaction.

e) The revenue and expenditure are accounted on a going concern basis.

5. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions during the year are translated at the exchange rates prevailing on the respective date of inward or outward remittances.

Assets and Liabilities outstanding in foreign currency as on the date of the Balance Sheet are translated at exchange rates prevailing on the last day of the relevant financial year. Differences rising out of such transactions are charged to the respective revenue accounts.

The net gain/loss arising on revenue account during the year in respect of foreign exchange transactions are reckoned in the Statement of Profit and Loss.

6. LEASES

There is no finance lease transaction for the year.

7. RETIREMENT BENEFITS

In accordance with the Payment of Gratuity Act, 1972 the Company provides for gratuity, covering all employees. The company estimates its liability on actuarial valuation basis as of each year end, and is charged to Profit and Loss Account in accordance with AS-15 (revised). As per the policy of the company there are no Long Term Compensated Absences applicable to the employees of the company.

Employees receive benefits from a provident fund, which is defined contribution plan. Both the employee and the company make monthly contributions to the Regional Provident Fund equal to a specified percentage of the covered employee''s salary. The company has no further obligations under the plan beyond its monthly contributions.

8. PROVISION FOR TAXATION

Provision for Current Income Tax is made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. Provision for Deferred Tax Liability is provided on timing differences. The effect of deferred tax assets and liabilities of a change in tax rates is recognised in the income statement.

9. CASH FLOW STATEMENTS

The Cash flow statement is prepared under the indirect method as per AS- 3 ''Cash Flow Statements''

10. SEGMENT REPORTING

The entire operations of the company relate to one segment viz Extraction of Oil.

11. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the AS-20- ''Earnings per Share''

12. IMPAIRMENT OF ASSETS

All assets other than inventories and deferred tax asset, arerevie wed for impairment, wherever events or changes in cir- cumstances indicate that the carrying amount may not be re- cover able. Assets whose carrying value exceeds their recover- able amount are written down to the recoverable amount.

13. PROVISIONS AND CONTINGENCIES

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made

14. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction 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 its intended use. All other borrowing costs are changed to the profit and loss account. Interests on borrowed funds for the projects are capitalized with the cost of the project as a direct cost.

15. INTANGIBLE ASSETS

There are no intangible assets.


Mar 31, 2013

1. FIXED ASSETS

Fixed assets are stated at the values, at which they are acquired, less accumulated depreciation. The value at which fixed assets are acquired includes all related expenses up to the date of putting them to use.

Depreciation is provided on Straight Line method at the rates specified in SCHEDULE XIV to the Companies Act, 1956. Depreciation is provided on prorate basis from the day on which the assets have been put to use and up to the day on which assets have been disposed off.

2. INVESTMENTS

There are no Investments

3. INVENTORIES

a) Inventory of raw materials is valued at Cost of Purchase and include all expenses incurred in bringing the materials to their present location and condition.

b) Work in progress and finished goods include conversion cost in addition to the landed cost of raw materials.

c) Finished goods are valued at cost or net realizable value whichever is less.

4. REVENUE RECOGNITION

a) The Company recognizes income and expenditure on accrual basis. Revenue from Sale of Goods is recognized when goods are dispatched. Sales include Excise duty, freight, insurance, etc., recovered and are net of sales returns.

b) Income from rent is recognized as per the terms and over the period as stated in rental agreements on accrual basis.

c) Commission and other incomes are recognized on accrual basis.

d) Interest is recognized using the Time-Proportion method, based on the rates implicit in the transaction.

e) The revenue and expenditure are accounted on a going concern basis.

5. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions during the year are translated at the exchange rates prevailing on the respective date of inward or outward remittances.

Assets and Liabilities outstanding in foreign currency as on the date of the Balance Sheet are translated at exchange rates prevailing on the last day of the relevant financial year. Differences rising out of such transactions are charged to the respective revenue accounts.

The net gain/loss arising on revenue account during the year in respect of foreign exchange transactions are reckoned in the Profit and Loss Account.

6. LEASES

There is no finance lease transaction for the year.

7. RETIREMENT BENEFITS

In accordance with the Payment of Gratuity Act, 1972 the Company provides for gratuity, covering all employees. The company estimates its liability on actuarial valuation basis as of each year end, and is charged to Profit and Loss Account in accordance with AS-15 (revised). As per the policy of the company there are no Long Term Compensated Absences applicable to the employees of the company.

Employees receive benefits from a provident fund, which is defined contribution plan. Both the employee and the company make monthly contributions to the Regional Provident Fund equal to a specified percentage of the covered employee''s salary, the company has no further obligations under the plan beyond its monthly contributions.

8. PROVISION FOR TAXATION

Provision for Current Income Tax is made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. Provision for Deferred Tax Liability is provided on timing differences. The effect of deferred tax assets and liabilities of a change in tax rates is recognised in the income statement.

9. CASH FLOW STATEMENTS

The Cash flow statement is prepared under the indirect method as per AS- 3 "Cash Flow Statements"

10. SEGMENT REPORTING

The entire operations of the company relate to one segment viz Extraction or Oil.

11. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the AS-20- "Earnings per Share"

12. IMPAIRMENT OF ASSETS

All assets other than inventories and deferred tax asset, arerevie wed for impairment, wherever events or changes in circumstances indicate that the carrying amount may not be recover able. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount.

13. PROVISIONS AND CONTINGENCIES

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. Adisclosure for a contingent liability is made when there is a possible obligatiorvor a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made

(i) Contribution to Provident Fund is made to the Regional Provident Fund Commissioner.

(ii) Provision made for Gratuity during the year Rs.64,263/- has yet to be funded.

14. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction 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 its intended use. All other borrowing costs are changed to the profit and loss account. Interests on borrowed funds for the projects are capitalized with the cost of the project as a direct cost.

15. INTANGIBLE ASSETS

There are no intangible assets.


Mar 31, 2011

I. Accounting Policies/Compliance of Accounting Standards issued by the institute of Chartered Accountants of India.

1) A.S. 1: Disclosure on accounting policies

The accounts are maintained on accrual basis as a going concern.

2) A.S. 2: Valuation of Inventories

Inventories are valued at lower of Cost or net realizable value. Cost is ascertained on weighted average basis in accordance with the method of valuation prescribed by the Institute of Chartered Accountants of India. Raw materials are valued at Cost of Purchase and include all expenses incurred in bringing the materials to their present location and condition. Work-in-progress and finished goods include conversion costs in addition to the landed cost of raw materials.

3) A.S. 3 Cash Flow Statements

The Cash flow statement annexed.

4) A.S. 4 Events occurring after the Balance Sheet Date

Not Applicable

5) A.S.5 Net Profit or loss for the period, prior period items and changes in accounting policies.

Not Applicable

6) A.S. 6: Depreciation Accounting

Depreciation is provided under straight-line method as per Amended Schedule XIV of the Companies Act, 1956.

7) A.S. 7 Construction Contracts

This accounting Standard is not applicable

8) A.S. 8 Research and Development This Accounting Standard is withdrawn

9) A.S. 9: Revenue Recognition

The revenue and expenditure are accounted on a going concern basis.

10) A.S. 10: Accounting for Fixed Assets

The gross blocks of fixed assets are shown at the cost of acquisition, which include taxes duties and other identifiable direct expenses incurred upto the date the asset is put into use.

11) A.S. 11: Accounting for effects in Foreign Exchange

Foreign currency transactions are accounted at the exchange rates prevailing on the date of the transactions.

12) A.S. 12: Accounting for Government Grants

The Company has not received any grants

13) A.S. 13 Accounting for Investments The company has no investments

14) A.S. 14 Accounting for amalgamation Druing the year there was no amalgamation

15) A.S. 15: Accounting for retirement benefits

(i) Contribution to Provident Fund is made to the Regional Provident Fund Commissioner.

(ii) Provision made for Gratuity during the year Rs. 1,30,707/- has yet to be funded.

16) A.S. 16: Borrowing Costs

The Borrowing Costs have been treated in accordance with the Accounting Standard on borrowing cost issued by The Institute of Chartered Accountants of India

17) A.S. 17: Segment Reporting

The Company operates in only one segment, viz. Extraction of Oil. Hence the Accounting Standard on Segment reporting is not applicable

18) A.S. 18: Related party Disclosures a) List of Related Parties

1. Mailam India Limited-(MIL)

2. Pondicherry Extraction Industries Limited- (PEIPL)

3. Smt. Jasodabai Kothari (Individual) (Mother of Sri J K Kothari & Mother in Law of Smt. Kamala J Kothari)

b) Key Management Personnel

Name of the related Party Nature of relation ship Directorship

1. Sri. J.K. Kothari Managing Director MIL/PEIPL

2. Sri. M. Sivagurunathan Director MIL

3. Smt. Kamala J. Kothari Director PEIPL

19) A.S. 19: Leases

The Company has no Hire Purchases Loans hence A.S.19 is not applicable to this Company.

21) A.S. 21: Consolidated financial statements Not Applicable

22) A.S. 22: Accounting for Taxes

In line with the accounting policy deferred tax liability of Rs.24,29,267/- arising out of timing differences has not been recognized in books of accounts in view of the carry forward losses and will be recognized only if there will be sufficient taxable income available to realize such losses.

23) A.S.23: Accounting for investments in associates in consolidated financial statements

Not Applicable

24) A.S. 24: Discontinuing Operations

During the Year the company has not discontinued any of its operations

25) A.S. 25: Interim Financial Reporting

Quarterly financial results are published in accordance with the guidelines given by SEBI. The recognition and measurement principles as laid down in the Standard are followed with respect to such results. The quarterly results are also subjected to a limited review by the auditors as required by SEBI.

26) A.S. 26: Accounting for intangible assets -

There is no intangible assets hence, not applicable

27) A.S. 27: Financial Reporting of interests in Joint Venture - Not Applicable

28) A.S. 28: Impairment of assets

There is no impairment of assets during the year.

29) A.S. 29: Provisions, Contingent Liabilities and Contingent Assets Provision for Income-tax has been made as detailed below:

Income-tax (MAT) - Rs. Nil



 
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