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Accounting Policies of Kamdhenu Ltd. Company

Mar 31, 2015

1) Basis of preparation of financial statements

i) Financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and to comply with Accounting Standards referred to in Section 133 of the Companies Act 2013 read with Rule 7 of Company (Accounts) Rules, 2014 to the extent applicable.

ii) The Company follows the mercantile system of accounting and recognizes the income & expenditure on accrual basis.

iii) All assets and liabilities have been classified as Current or Non-current as per Company's normal operating cycle. Based on the nature of products and time between acquisition of assets/materials for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle being a period of one year for the purpose of classification of assets and liabilities as current and non-current.

2) Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes thereto. Differences between actual and estimates are recognized in the period in which the results are known/ materialized.

3) Fixed Assets

a) Valuation of Fixed Assets

Fixed Assets are stated at cost of acquisition (net of cenvat/ vat) inclusive of all incidental expenses related thereto.

b) Depreciation

Depreciation on fixed assets upto 31.03.2014, is provided for on the straight-line method in the manner and at the rates prescribed under Schedule XIV of the Companies Act,1956.Effective from 01.04.2014, depreciation is charged on the basis of useful life of the fixed assets. The Company has adopted useful life of fixed assets as given in Part 'C' of Schedule II of the Companies Act, 2013 in respect of all fixed assets.

c) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit & Loss in the year in which as 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.

4) Investment

Current Investments are valued at lower of cost and market value. Long Term Investments are stated at cost. Provision for diminution in the value of Long term investment is made, if such diminution, in the opinion of the management, is other than of temporary in nature.

5) Inventories

(a) Raw Materials, Stores & Spares, Packing Materials, Fuels, Finished Goods and Stock in process are valued at cost or net realizable value, whichever is less. In respect of stores and spares, raw material, packing materials and fuel cost have been arrived on FIFO basis. In case of Finished Goods and Stock in Process, cost has been arrived at on Standard cost basis.

(b) Waste Scrap and by products are valued at net realizable value.

6) Sales

Sales are stated inclusive of excise duty and net of rebates, trade discounts, sales tax/vat, sales return etc.

7) Recognition of Income & Expenditure

i) Revenues/Incomes and Costs/Expenditures are generally accounted for on accrual basis, as they are earned or inccured.

ii) Interest income is recognized on time proportion basis.

iii) Revenue from royalty are recognized as and when goods are sold by the franchisee units.

iv) Discounts and schemes are recognised as and when crystalized.

v) Insurance claims are recognised on certaintity of its realisation.

vi) Sales of power is recognised on the basis of actual quantity of power sold with reference to the centralised rate.

vii) Dividend income is recognised when right to receive is established.

8) Government Grants

Government grants related to revenues are recognised on systematic basis in Statement of Profit & Loss over the period necessary to match them with related cost which they intend to compensate and recuring nature of grants being ordinary items are shown by way of deduction in related expenses.

9) Research & development

Capital expenditure on research & development is treated in the same way as expenditure on fixed assets. Revenue expenditure on research & development is charged to the Statement of Profit & Loss under the respective heads of expenses in the year in which it is incurred.

10) Excise Duty/ Cenvat/VAT

Excise Duty is accounted for on the basis of both payments made in respect of goods cleared and also provisions made for goods lying in stock. Cenvat/VAT claimed on plant & machinery is reduced from the cost of plant & machinery. Cenvat/VAT claimed on purchase of raw materials, input services and other materials is reduced from the cost of such materials.

11) Employee Retirement Benefit

(i) Company's contribution to Provident Fund and Employee State Insurance are charged to Statement of Profit & Loss.

(ii) Liability on account of gratuity and leave encashment are provided for on the basis of acturial valuation made at the end of each financial year.

12) Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between book profit and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the date of balance sheet. The deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that the same will be realized in future.

13) Foreign Currency Transactions

All transactions in foreign currency are recorded at the rate of exchange prevailing on the date when the relevant transaction take place.

14) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit & Loss.

15) 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 recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2014

1) Basis of preparation of financial statements

The financial statements are prepared under historical cost convention on the accrual basis of accounting in accordance with the Companies Act. 1956("the Act") and the Accounting Principles Generally Accepted in India (Indian GAAP).

2) Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes thereto. Differences between actual and estimates are recognized in the period in which the results are known/materialized.

3) Fixed Assets

a) Valuation of Fixed Assets

Fixed Assets are stated at cost of acquisrtion (net of cenvat/val) inclusive of all incidental expenses related thereto.

b) Depreciation

Depreciation on fixed assets is provided on straight-line method at the rate prescribed under Schedule XIV of the Companies Act. 1956 as amended time to time on pro-rata and actual shift working basis, wherever applicable.

c) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Proft & Loss Account in the year in which as asset is identified as impaired.The impairment loss recognised in pror accounting period is reversed if there has been a change in the estimate of recoverable amount.

4) Investment

Current Investments are valued at lower of cost and market value. Long Term Investments are stated at cost. Provision for diminution in the value of long term investment is made, if such diminution, in the opinion of the management, is other than of temporary in nature.

5) Inventories

(a) Raw Materials, Stores & Spares. Packing Materials, Fuels, Finished Goods and Stock in process are valued at cost or net ; realizable value, whichever is less.

(b) Waste Scrap and by products are valued at net realizable value.

6) Sales

Sales are stated inclusive of excise duty and net of rebates. trade discoqnts.salestax/vat. sales return etc.

7) Recognition of Income & Expenditure

i) Revenues/lncomesand Costs/Expenditures are generally accounted for on accrual basis, as they are earned or inccured.

ii) Interest income is recognized on time proportion basis.

lii) Revenue from royalty are recognized as and when goods are sold by the franchisee units.

iv) Discounts and schemes are recognised as and when crystalized,

v) Insurance claims are recognised on certaintity of its realisation.

vi) Sales of power is recognised on the basis of actual quantity of power sold with reference to the centralised rate.

vii) Dividend income is recognised when right to receive is established.

8) Government Grants

Government grants related to revenues are recognised on systematic basis in Statement of Profit & Loss overthe period necessary to match them with related cost which they intend to compensate and recunng nature of grams being ordinary items are shown by way of deduction in related expenses.

9) Research & development

Capital expenditure on research & development is treated in the same way as expenditure on fixed assets. Revenue expenditure on research & development is charged to the Statement of Profit & Loss under the respective heads of expenses in the year m ; which it is incurred.

10) Excise Duty/ Cenvat/VAT

Excise Duty is accounted for on the basis of both payments made m respect of goods cleared and also provisions made for goods lying in stock. Cenvat/VAT daimed on plant & machinery is reduced from the cost of plant & machinery. Cenvat/VAT claimed on purchase of raw materials, input services and other matenais is reduced from the cost of such materials.

11) Employee Retirement Benefit

(i) Companys contribution to Provident Fund and Employee State Insurance are charged to Statement of Profit & Loss.

(ii) Liability on account of gratuity and leave encashment are provided for on the basis of acturial valuation made at the end of each financial year.

12) Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act. 1961. Deferred tax resulting from "timing difference" between book profit and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the date of balance sheet. The deferred tax assets is recognized and carried forward only to the extent that there isa reasonable certainty that the same will be real ized in future.

13) Foreign Currency Transactions

All transactions in foreign currency are recorded at the rate of exchange prevailing on the date when the relevant transaction take place.

14) Borrowing Cost

Borrowing cost that are attnbutable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that takes necessanly substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit & Loss.

15) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there ts 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. Contingent assets are neither recognized nordisdosed inthe financial statements.


Mar 31, 2013

1) Basis of preparation of financial statements The financila statements a re prepared unuer historical cost convention on this accrual basis of accounting in accordance wrtfi the Companies Act, 1956 ("Hie Act") and the Accqu nting Pri nciples Generally Accepted in India (''Indian GAAP).

2) Use of Estimates

The preparation of financial statements reqdii es management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes thereto, Differences between actual and estjmates are recognized in the period in which the results are known/materialized,

3) Fixed Assets

a) Val u at Jon af Fi xed Assets

Fixed Assets are stated at cost of acquisition (net of cenvaty vat) inclusive of ail incidental ey censes related thereto.

b) Depreciation

Depreciation on fixed assets >s provided on straight-line method at the rate prescribed under Schedule XIV of the Companies Act, 1956 as amended time to time on pro-rata and actual shrft working basis, whereyei1 applicable.

c) Impairment of Assets

An asset is treated as im [wired when the carrying cost of assets exceeds its recoverable value, An impairment loss is changed torhe Statement of Profit Si Loss Account m the year in which as asset is identified as impaired.The impairmervt loss recogrused in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

4) Investment

Current Investments art valued at lower of cost and market value. Long Term hvestrne/nu are stated at tost. Rovis-on ior diminution in the value of investment is made, if such diminution, in me opinion of the management, is other than of temporary in nature.

5) Inventories

(a] Raw Materials, Stones & Spares, packing Materials, Fuels. Finished Goods and Stock, m process are valued at cost or net realizable vaJue, whichever rs less.

(b) Waste Scrap and by products are valued at net. realizable value.

6) Sales

Sales are stated inclusive of excise duty and net of rebates, trade discounts.salestaxA''atsales return eK.

7) Re c o g ;i it ion of I nc om e & Ex pendi ture

i) Revenues/Incomes and Costs/Expenditures are ge neratly accounted for on accmal bssis. a5 thep are earned or mccured.

ii) Interest income is recognized on Time proportion basis.

iii) Revenue from royalty are recognized as and when goods are sold by the franchisee units,

Iv) Discountsand schemes are recognised as and when cry stalized.

v) Insurance claims are recognised on certajntity of its realisation,

Vi) Sales of power rs recognised on the basis ofaaual quantity of power sold witfi reference to tne centralised rate.

vii) Dividend ircome is necogntsed when nght to recetvekS established.

a) Government Grants

Government grants related to revenues are recognised on systematic basis in Statement of Profit & Loss over the period necessary to match them with related cost which they intend to compensate end recuring nature of grants being ordinary ilems are shown byway of deduction m related expenses.

9} Research & development

Capital expenditure on research &. development is treated in the same way as expenditure on Fixed assets. Revenue expenditure on research & development is charged to the Statement of Profit & Loss under the respective heads of expenses m the year in which it is incurred.

10) Excise Duty/ Cenvat/VAT

tsciie Duly is accounted for un ihe basis ol both payment made
11) Employee Retirement Benefit

(i) Company''s conlnbutfonto Provident Fund and EmpJoyee Stale Insurance are charged lo Statement of profit & Loss..

(ii) Lability on account of gratuity and leave encashment are provided tor on the basis ol acturial valuabon made at Ihe end of each financial year

12) Provisions for Current and Deferred Tax

P»ovision br current tax is made after taking mto consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between book profit and taxable profit is sccojr.ted far usmg the tax rates and laws that have been enacted or- substantively enacted as cm the date of balance sheet. The defeimed lax assets is recognized and carried forward only to the extern that there is a reasonable certainty that the same will be realized m future.

13) Foreign Currency Transactions

All transactions in foreign currency are recorded at the rate ol exchange prevailing on the date Wnen the relevant transaction fake place.

14) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction ol qualifying assets are capitalised as part of the cost d such assets. A qualifying assets is one that takes necessanly substantial penod of time to get ready for its ntended use. All other borrowing costs are charged to Statement of Profit & Loss.

15) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree ol estimation in measurement are recognized when there ss a present obligation as a result of past events and it is probaale that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent assets are nerther recogrized nordisclosed in the financial statements.


Mar 31, 2012

1) Basis of Accounting

The financial statements are prepared under historical cost convention on the accrual basis of accounting in accordance with the Companies Act,1956 ("the Act") and the Accounting Principles Generally Accepted in India ('Indian GAAP') and to comply with the Accounting standards prescribed in companies (Accounting Standard) Rules 2006 issued by the Central Government in exercise of power conferred under Section 642 (ix a) and relevant provisions of the Act.

2) Presentation and disclosure of financial statements

During the year ending 31 March 2012. The received Schedule VI notified under the Companies Act to the company. For presentation of its financial statement How on presentation and disclosures made in the financial statements, The company has also reclassification accordance with requirements applicable in the current year,

3) Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes thereto. Differences between actual and estimates are recognized in the period in which the results are known/ materialized.

4) Fixed Assets

a) Valuation of Fixed Assets Fixed Assets are stated at cost of acquisition (net of cenvat / vat) inclusive of all incidental expenses related thereto.

b) Depreciation Depreciation on fixed assets is provided on straight-line method at the rate prescribed under Schedule XIV of the Companies Act,1956 as amended time to time on pro-rata and actual shift working basis, wherever applicable.

c) Expenditure during construction period for new projects/expansions Expenditure which are directly attributable to identified assets and incurred during the construction period are included under capital work in progress till the completion of the project. Expenditure which are not directly attributable to an unidentified assets forming part of a project are carried to pre-operative expenses till the completion of the project, On completion of the project, capital work in progress along with pre-operative expenses is carried to respective fixed assets.

d) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which as 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.

5) Investment

Current Investments are valued at lower of cost and market value. Long Term Investments are stated at cost. Provision for diminution in the value of investment is made, if such diminution, in the opinion of the management, is other than of temporary in nature.

6) Inventories

(a) Raw Materials, Stores & Spares, Packing Materials, Fuels, Finished Goods and Stock in process are valued at cost or net realizable value, whichever is less.

(b) Waste Scrap and by products are valued at net realizable value.

7) Sales

Sales are stated inclusive of excise duty and net of rebates, trade discounts, sales tax/vat, sales return etc.

8) Revenue Recognition

i) Sales are recognized on accrual basis.

ii) Interest income is recognized on time proportion basis.

iii) Revenue from royalty are recognized as and when goods are sold by the franchisee units.

iv) Discounts and schemes are recognized as and when crystallized.

v) Insurance claims are recognized on certainty of its realization.

Vi Sales of power is recognised on the basis of actual quantity of power sold with reference to the centralized rate.

9) Government Grants Government grants related to revenues are recognised on systematic basis in statement Profit & Loss Account over the period necessary to match them with related cost which they intend to compensate and recurring nature of grants being ordinary items are shown by way of deduction in related expenses.

10) Research & development

Capital expenditure on research & development is treated in the same way as expenditure on fixed assets. Revenue expenditure on research & development is charged to the Stamens of Profit & Loss under the respective heads of expenses in the year in which it is incurred.

11) Excise Duty/ Cenvat / VAT

Excise Duty is accounted for on the basis of both payments made in respect of goods cleared and also provisions made for goods lying in stock. Cenvat / VAT claimed on plant & machinery is reduced from the cost of plant & machinery. Cenvat/VAT claimed on purchase of raw materials, input services and other materials is reduced from the cost of such materials.

12) Employee Retirement Benefit

(i) Company's contribution to Provident Fund and Employee State Insurance are charged to Statement of Profit & Loss.

(ii) Liability on account of gratuity and leave encashment are provided for on the basis of actuarial valuation made at the end of each financial year.

13) Provisions for Current and Deferred Tax Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between book profit and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the date of balance sheet. The deferred tax assets is recognized and carried forward only to the extent that there is a reasonable and carried forward only to the extent that there is a reasonable certainty that the same will be realized in future.

14) Miscellaneous Expenditure

Preliminary and Authorised Share Capital increase expenses will be written off over a period of five years.

15) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit & Loss.

16) Provision, 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 recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

 
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