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Accounting Policies of JVL Agro Industries Ltd. Company

Mar 31, 2014

1.1 Basis for preparation of accounts:

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities. These accounts are prepared on the principles of going concern and consonance with generally accepted accounting principle.

2.2 Revenue Recognition:- Sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, trade taxes & Freight (on goods manufactured and traded).

2.3 Expenditures:- Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities except gratuity and misc. petty item which are accounted for on cash basis. Cost of Raw material consumed includes duty, port charges, Transportation, Agent Commission, net of interest on finance charges including gain/(loss) on foreign currency fluctuation, loading/unloading expenses, factory expenses & production expenses etc.

2.4 Tangible Fixed Assets:- Fixed assets are stated at cost and adjusted by foreign currency fluctuation against loan repayment less accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the profit and loss account. Depreciation on account of fluctuation of foreign currency loans availed in respect of fixed assets is provided as aforesaid over the residual life of the respective fixed assets.

2.5 Depreciation:- Depreciation on fixed assets is provided on the straight line method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

2.6 Intangible Assets:- The company does not have any intangible assets.

2.7 Investments:- Investments are stated at the cost value. Investments in shares are stated as Short Term Loans & Advances. As per management, reductions in market rates are temporary, and hence no provision is required to be made in account.

2.8 Inventories:- Finished goods, traded goods are valued at cost or net market value whichever is lower. Raw Material, Packing Material, Chemicals and Stores are valued at cost. Works in progress are valued at raw material cost. By products are valued at estimated realizable value.

2.9 Current and Deferred Tax Liability:- Deferred tax is recognized on timing differences being the differences between taxable incomes and accounting income that originate in one reporting period and are capable of reversal in one or more subsequent reporting period.

2.10 Foreign Currency Transaction:- Foreign currency transactions are recorded on the basis of exchange rate prevailing on the date of their occurrence. Foreign currency liabilities as on Balance Sheet date are revalued in the accounts on the basis of exchange rates prevailing at the close of the year, exchange differences arises there from is recognize to the statement of profit & loss or is adjusted to the cost of fixed assets. Other exchange differences are recognized as income or expenses in the period in which they arise. Foreign Exchange Gain/Loss arises on forward contract are also recognized in the statement of profit and loss in the reporting period in which exchange rate change. Any profit or loss arising on cancellation or renewal of such a forward exchange contract are also recognized as income or as expense for the period.

2.11 Segment Reporting:- The company''s present operations are related to production of Vanaspati,Refine & Mustard Oil, DOC and trading of goods. The entire income of the company is mainly in India, hence there is no reportable geographical segment. Vanaspati, Refine & Vanaspati Oil, Edible Oils are the primary segment of the company and there is no secondary segment.

2.12 Earning Per Share:- Basic earnings per share is calculated by dividing the net profit for the reporting period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

2.13 Government Grants:- Grant including subsidy/rebates/re-imbursements is transferred to statement of profit & loss a/c from capital reserve on the basis of accrual of same. Grant relating to fixed assets are credited to Capital Reserve Account or adjusted in cost of such assets as the case may be.

2.14 Impairment of Fixed Assets:- An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

2.15 Borrowing Cost:- 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 Profit and Loss account.

2.16 Employee Benefit:- 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. Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.

2.17 Provisions, Contingent Liability & 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 recognized but are disclosed in the notes.


Mar 31, 2013

1.1 Basis for preparation of accounts:- The accounts have been prepared to comply in all material aspects with applicable accounting principles in India. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities. These accounts are prepared on the principles of going concern and consonance with generally accepted accounting principle.

1.2 Revenue Recognition:- Sales are recognised when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, trade taxes & Freight (on goods manufactured and traded).

1.3 Expenditures:- Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities except gratuity and misc. petty item which are accounted for on cash basis. Cost of Raw material consumed includes duty, port charges, Transportation, Agent Commission, net of interest on finance charges including gain/(loss) on foreign currency fluctuation, loading/unloading expenses, factory expenses & production expenses etc.

1.4 Tangible Fixed Assets:- Fixed assets are stated at cost and adjusted by foreign currency fluctuation against loan repayment less accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the profit and loss account. Depreciation on account of fluctuation of foreign currency loans availed in respect of fixed assets is provided as aforesaid over the residual life of the respective fixed assets. During the year Haldia unit has started commercial production, all the administrative expenditure including finance charges up to the date of commercial production have been capitalised.

1.5 Depreciation:- Depreciation on fixed assets is provided on the straight line method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

1.6 Intangible Assets:- The Company does not have any intangible assets.

1.7 Investments:- Investments are stated at the cost value. Investments in shares are stated as Short Term Loans & Advances. As per management, reductions in market rates are temporary, and hence no provision is required to be made in account.

1.8 Inventories:- Finished goods, traded goods are valued at cost or net market value whichever is lower. Raw Material, Packing Material, Chemicals and Stores are valued at cost. Works in progress are valued at raw material cost. By products are valued at estimated realisable value.

1.9 Current and Deferred Tax Liability:- Deferred tax is recognised on timing differences; being the differences between taxable incomes and accounting income that originate in one reporting period and are capable of reversal in one or more subsequent reporting period.

1.10 Foreign Currency Transaction:- Foreign currency transactions are recorded on the basis of exchange rate prevailing on the date of their occurrence. Foreign currency liabilities as on Balance Sheet date are revalued in the accounts on the basis of exchange rates prevailing at the close of the year, exchange differences arises there from is recognise to the statement of profit & loss or is adjusted to the cost of fixed assets.

1.11 Segment Reporting:- The Company''s present operations are related to production of Vanaspati,Refine & Mustard Oil, DOC and trading of goods. The entire income of the Company is mainly in India, hence there is no reportable geographical segment. Vanaspati, Refine & Vanaspati Oil, Edible Oils are the primary segment of the Company and there is no secondary segment.

1.12 Earning Per Shares:- Basic earnings per share is calculated by dividing the net profit for the reporting period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

1.13 Government Grants:- Grant including subsidy/rebates/re-imbursements is transferred to statement of profit & loss a/c from capital reserve on the basis of accrual of same. Grant relating to fixed assets are credited to Capital Reserve Account or adjusted in cost of such assets as the case may be.

1.14 Impairment of Fixed Assets:- An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.15 Borrowing Cost:- Borrowing costs that are attributable to the acquisition or construction 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 its intended use. All other borrowing costs are charged to Profit and Loss account.

1.16 Employee Benefit:- Short-term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered. Post employment and other long term employee benefits are recognised as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.

1.17 Provisions, Contingent Liability & Contingent Assets:- Provisions involving substantial degree of estimation in measurement are recognised 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 recognised but are disclosed in the notes.


Mar 31, 2012

1.1 Basis for preparation of accounts:

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities. These accounts are prepared on the principles of going concern and consonance with generally accepted accounting principle.

1.2 Revenue Recognition:

Sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, trade taxes & Freight (on goods manufactured and traded).

1.3 Expenditures:

Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities except misc. petty item which are accounted for on cash basis. Cost of Raw material consumed includes duty, port charges, Transportation, Agent Commission, net of interest on finance charges including gain/(loss) on foreign currency fluctuation, loading/unloading expenses, factory expenses & production expenses etc.

1.4 Tangible Fixed Assets:

Fixed assets are stated at cost and adjusted by foreign currency fluctuation against loan repayment less accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the profit and loss account. Depreciation on account of fluctuation of foreign currency loans availed in respect of fixed assets is provided as aforesaid over the residual life of the respective fixed assets.

1.5 Depreciation:

Depreciation on fixed assets is provided on the straight line method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

1.6 Intangible Assets:

The company does not have any intangible assets.

1.7 Investments:

Investments are classified into current and long-term investments and are stated at the cost value. As per management, investment in shares and mutual fund are on long term basis, reductions in market rates are temporary, and hence no provision is required to be made in account.

1.8 Inventories:

Finished goods, traded goods are valued at cost or net market value whichever is lower. Raw Material, Packing Material, Chemicals and Stores are valued at cost. Works in progress are valued at raw material cost. By products are valued at estimated realizable value.

1.9 Current and Deferred Tax Liability:

Deferred tax is recognized on timing differences; being the differences between taxable incomes and accounting income that originate in one reporting period and are capable of reversal in one or more subsequent reporting period.

1.10 Foreign Currency Transaction:

Foreign currency transactions are recorded on the basis of exchange rate prevailing on the date of their occurrence. Foreign currency liabilities as on Balance Sheet date are revalued in the accounts on the basis of exchange rates prevailing at the close of the year, exchange differences arises there from is recognize to the statement of profit & loss or is adjusted to the cost of fixed assets.

1.11 Segment Reporting:

The company's present operations are related to production of Vanaspati,Refine & Mustard Oil, DOC and trading of goods. The entire income of the company is mainly in India, hence there is no reportable geographical segment. Vanaspati, Refine & Vanaspati Oil, Edible Oils are the primary segment of the company and there is no secondary segment.

1.12 Earning Per Shares:

Basic earnings per share is calculated by dividing the net profit for the reporting period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

1.13 Government Grants:

Grant including subsidy/rebates/re-imbursements is credited to statement of profit & loss. Grant relating to fixed assets are credited to Capital Reserve Account or adjusted in cost of such assets as the case may be, as and when the ultimate realisibility of such grants is established.

1.14 Impairment of Fixed Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.15 Borrowing Cost:

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 Profit and Loss account.

1.16 Employee Benefit:

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. Post employment and other long term employee benefits are recognized as an expense in the Profit and Lossaccount for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.

1.17 Provisions, Contingent Liability & 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 recognized but are disclosed in the notes.


Mar 31, 2011

13. Accounting Policies:

i) Fixed Assets & Depreciation :

a) Fixed Assets: Fixed assets are Valued at Cost,and adjusted by foreign currency fluctuation against Loan Repayment, less depreciation

b) Depreciation on account of fluctuation of Foreign currency Loans availed in respect of Fixed Assets is provided as aforesaid over the residual life of the respective Assets.

ii) Inventories:

a) Finished goods,Trading goods are valued at cost or market value which ever is lower.

b) Raw Material, Packing Materials, Chemicals and Stores are valued at cost.

c) Work in Progress are valued at Raw Material cost.

d) By products are valued at estimated realisable value

iii) Sales: Sales are inclusive of Excise Duty and net of Rebate, Freight,Discount.

iv) Raw Material consumption includes duty, port charges, transportation,agent commission, net of interest and finance charges,etc.

v) Revenue-Recognition:Expenses and income considered payable and receivable respectively have been accounted for on accrual basis except gratuity and misc. petty items which are accounted for on cash basis. Where the ability to assess the ultimate collection with reasonable certainty is lacking at the time of raising any claim, revenue recognition is postponed to the extent of uncertainty involved.

vi) Government Grants- Grant including subsidy/rebates/re-imbursement are credited to Profit & Loss Account. Grants relating to fixed assets are credited to Capital Reserve Account or adjusted in the cost of such assets as the case may be, as and when the ultimate realisability of such grants are established.

vii) General:

a) These accounts are prepared on the historical cost basis and on the accounting principles of a going concern.

b) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

viii) Foreign Currency Transactions:

a) Foreign currency transactions are recorded on the basis of exchange rate prevailing on the date of their occurance.

b) Foreign currency liabilities as on Balance Sheet date are revalued in the accounts on the basis of exchange rates prevailing at the close of the year exchange difference arising there from is adjusted to the cost of Plant & Machineries of units for which loans were taken

ix) Investment are valued at cost. As per management investment in Shares are on long term basis and reduction in market rates are temporary and hence no provision is required to be made in accounts.


Mar 31, 2010

A) Fixed Assets: Fixed assets are Valued at Cost, and adjusted by foreign currency fluctuation against loan repayment, less depreciation.

b) Depreciation on account of fluctuation of Foreign currency Loans availed in respect of fixed assets is provided as aforesaid over the residual life of the respective Assets.

ii) Inventories:

a) Finished goods, trading goods are valued at cost or market value which ever is lower.

b) Raw material, packing materials, chemicals and stores are valued at cost.

c) Work in progress are valued at raw material cost.

d) By products are valued at estimated realisable value

iii) Sales: Sales are inclusive of excise duty and net of rebate, freight, discount

iv) Raw material consumption includes duty, port charges, transportation, agent commission and net of interest, and finance charges, etc.

v) Revenue-Recognition: Expenses and income considered payable and receivable respectively have been accounted for on accrual basis except gratuity and misc. petty items which are accounted for on cash basis. Where the ability to assess the ultimate collection with reasonable certainty is lacking at the time of raising any claim, revenue recognition is postponed to the extent of uncertainty involved.

vi) General:

a) These accounts are prepared on the historical cost basis and on the accounting principles of a going concern.

b) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

vii) Foreign currency transactions:

a) Foreign currency transactions are recorded on the basis of exchange rate prevailing on the date of their occurance.

b) Foreign currency liabilities as on Balance Sheet date are revalued in the accounts on the basis of exchange rates prevailing at the close of the year exchange difference arising there from is adjusted to the cost of plant & machineries of units for which loans were taken.

viii) Investment are valued at cost. As per management investment in shares are on long term basis and reduction in market rates are temporary and hence no provision is required to be made in accounts.

 
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