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Union Budget 2017-18
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Accounting Policies of Nuway Organic Naturals (India) Ltd. Company

Mar 31, 2015

1. Corporate Information

NUWAY ORGANIC NATURAL INDIA LTD. (the Company) is a public limited company domiciled in India and incorporated on July 10, 1995 under the provisions of Indian Companies Act, 1956. The Company is in the business of the manufacturing whisky, rum, gin and other alcoholic / non alcoholic drinks. The company is having manufacturing plant for alcoholic drinks at Rajpura in Punjab. The company also deals in cosmetics items.

2. Basic of Preparation

The financial statements are prepared on accrual basis under the historical cost convention in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards referred to in subsection(10)of section 143 of the CompaniesAct,2013 including the Rules framed there under

3. Use of estimates

The preparation of financial statement in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of the assets and liabilities on the date of the date of financial statement and reported amount & Revenue and Expenses during the reporting period. Differences between Actual and estimates are recongnised in the period in which result get materialized.

4. Significant accounting policies: a Revenue recognition

Revenue /Income from sale of traded goods is recognized on dispatch of goods. Sales are exclusive of Sales Tax which ever applicable.

Interest on deployment of funds is recognized on accrual basis. Dividend income is recognized on receipt. Profit on sale of investment is recognized on sale of investment.

b Fixed Assets

Fixed assets of the company were stated at cost of acquisition less accumulated depreciation. Cost is inclusive of freight, duties, levies, any directly attributable cost of bringing the assets to their working condition for their intended use.

c Depreciation

Depreciation on fixed assets has been charged on Diminishing Balance Method at the rates prescribed in schedule-XIV of the Companies Act 1956 as amended in 1993. Depreciation on additions was charged on pro- rata basis relating to the period of use of such assets.

d Inventories

Inventories are valued on the following bases: Raw material At cost or net reliable value whichever is lower. Cost is ascertained on FIFO basis.

At cost or net realisable value whichever is lower. Cost includes direct material. Work-in-progress (net of Cenvator VAT, if any)and direct labour and proportion of Manufacturing overheads based on normal working capacity.

Finished Goods At cost (inclusive of Excise Duties) or net realisable value whichever is lower. Costincludesdirectmaterial(netofCenvatorVATifany)anddirectlabourand proportion of Manufacturing overheads based on normal working capacity.

e Cash Flow Statement

Cash Flow Statement has been prepared on indirect method as per the guidelines and AS-3 issued by ICAI

Taxes on Income

Tax expense comprises current income tax and deferred income tax Income Tax is measured at the amount expected to be paid to the Tax Authorities in accordance with the Income Tax Act, 1961 using the tax rates as per the Tax Law that have been enacted or substantively enacted as on the date of the Balance Sheet.

Deferred Tax Assets and Liabilities are recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods in accordance with the Accounting Standard 22 "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India. Deferred Tax Assets and Liabilities are recognized using the tax rates as per the Tax Law that have been enacted or substantively enacted as on the date of the Balance Sheet

g Investments

Long Term Investments are carried at cost, however, provision for diminution in the value of Investment is made only if Auccha decline is other than temporary in the opinion of management.

h Miscellaneous Expenditure

Expenses incurred for Capital Enhancement are capitalized in Pre-operative Expense (Pending Written off) and 1/5th of said expenses are being written off against the profits of the company.

i. Employee benefits

No Provision has been made for Gratuity during the year as the same is being accounted for on cash basis.

No Provision for earned leave has been made in the accounts for the year. It will be charged to revenue as and when paid.

j Contingent Liabilities and provisions:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is possible that there will be an outflow of resources Contingent Liabilities are not recognized in the financial statements but are disclosed in the note of accounts. Contingent assets are neither recognized and nor disclosed in financial statements.

k Borrowing Cost

Borrowing cost that are directly attributable to acquisition or construction of qualifying assets has been capitalized as part of such asset as perAS-16 on Borrowing Costs issued by the ICAI. All other borrowing cost are charged to revenue in the period when they are incurred

I. Earning Per Share

EPS is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average no. of equity shares outstanding during the year as per AS-20 issued by the ICAI

m. Impairment of assets

Fixed Assets are assessed annually on the balance sheet date having regard to the internal and external source of information so as to analyze whether any impairment of the asset has taken place.

If the recoverable amount, represented by the higher of net selling price or the value in use, is less than the carrying amount of cash - generated unit the difference is recognized as impairment loss and debited to P & L account.


Mar 31, 2014

A Revenue recognition

Revenue /Income from sale of traded goods is recognized on dispatch of goods. Sales are exclusive of Sales Tax whichever applicable.

Interest on deployment of funds is recognized on accrual basis. Dividend income is recognized on receipt. Profit on sale of investment is recognized on sale of investment.

b Fixed Assets

Fixed assets of the company were stated at cost of acquisition less accumulated depreciation. Cost is inclusive of freight, duties, levies, any directly attributable cost of bringing the assets to their working condition for their intended use.

c Depreciation

Depreciation on fixed assets has been charged on Diminishing Balance Method at the rates prescribed in schedule - XIV of the Companies Act 1956 as amended in 1993. Depreciation on additions was charged on pro- rata basis relating to the period of use of such assets.

d Inventories

Inventories are valued on the following bases :

Raw material

At cost or net realisable value whichever is lower. Cost is ascertained on FIFO basis.

Work-in-progress

At cost or net realisable value whichever is lower. Cost includes direct material. (net of Cenvat or VAT, if any) and direct labour and proportion of Manufacturing overheads based on normal working capacity.

Finished Goods

At cost (inclusive of Excise Duties) or net realisable value whichever is lower. Cost includes direct material (net of Cenvat or VAT if any) and direct labour and proportion of Manufacturing overheads based on normal working capacity.

e Cash Flow Statement

Cash Flow Statement has been prepared on indirect method as per the guidelines and AS-3 issued by ICAI f Cash Flow Statement Tax expenses comprises current Taxes, income tax and deferred Income Tax.

Income Tax is measured at the amount expected to be paid to the Tax Authorities in accordance with the Income Tax Act, 1961 using the tax rates as per Tax Law that have been enacted or substantivally enacted as on the date of the Balance Sheet.

Deferred Tax Assets and Liabilities are recognized on timing difference, being the difference between taxable Income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods in accordance with the Accounting Standard 22 *Accounting for Taxes on Income*, issued by the Institute of Chartered Accountants of India. Deferred Tax Assets and Liabilities are recognized using the tax rates as per the Tax Law that have been enacted or substantively enacted as on the date of the Balance Sheet.

g Investments

Long Term Investments are carried at cost, however, provision for diminution in the value of Investment is made only if such a decline is other than temporary in the opinion of management.

h Miscellaneous Expenditure

Expenses incurred for Capital Enhancement are capitalized in Pre-operative Expense (Pending Written off) and 1/5th of said expenses are being written off against the profits of the company.

i. Employee benefits

No Provision has been made for Gratuity during the year as the same is being accounted for on cash basis.

No Provision for earned leave has been made in the accounts for the year. It will be charged to revenue as and when paid.

j Contingent Liabilities and provisions :

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is possible that there will be an outflow of resources Contigent Liabilities are not recognized in the financial statements but are disclosed in the note of accounts. Contigent assets are neither recognized and nor disclosed in financial statements.

k Borrowing Cost

Borrowing cost that are directly attributable to acquisition or construction of qualifying assets has been capitalized as part of such asset as per AS-16 on Borrowing Costs issued by the ICAI. All other borrowing cost are charged to revenue in the period when they are incurred.

l. Earning Per Share

EPS is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average no. of equity shares outstanding during the year as per AS-20 issued by the ICAI

m. Impairment of assets

Fixed Assets are assessed annually on the balance sheet date having regard to the internal and external source of information so as to analyze whether any impairment of the asset has taken place.

If the recoverable amount, represented by the higher of net selling price or the value in use, is less than the carrying amount of cash - generated unit the difference is recognized as impairment loss and debited to P & L account.

Suitable reversals are made in the book of account as and when the impairment loss ceases to exist or shows a decrease.


Mar 31, 2013

A. Revenue recognition

Revenue/Income from sale of traded goods is recognized on dispatch of goods. Sales are exclusive of Sales Tax, whichever applicable.

Interest on deployment of funds is recognized on accrual basis. Dividend income is recognized on receipt. Profit on sale of investment is recognized on sale of investment.

b. Fixed Assets

Fixed Assets of the company were stated at cost of acquisition less accumulated depreciation. Cost is inclusive of freight, duties, levies, any directly attributable cost of bringing the assets to their working condition for their intended use.

c. Depreciation

Depreciation on fixed assets has been charged on Diminishing Balance Method at the rates prescribed in Schedule – XIV of the Companies Act, 1956, as amended in 1993. Depreciation on additions was charged on pro-rata basis relating to the period of use of such assets.

d. Inventories

Inventories are valued on the following bases :

Raw Material

At cost or net realisable value whichever is lower .Cost is ascertained on FIFO basis

Work-In-Progress

At cost or net realisable value whichever is lower. Cost includes direct material (net of Cenvat or Vat, if any) and direct labour and Proportion of Manufacturing overheads based on normal working capacity.

Finished goods

At cost (inclusive of Excise Duties) or net realisable value whichever is lower. Cost includes direct material (net of Cenvat or Vat, if any) and direct labour and Proportion of Manufacturing overheads based on normal working capacity.

e. Cash Flow Statement

Cash Flow Statement has been prepared on indirect method as per the guidelines and AS-3 issued by ICAI.

f. Cash Flow Statement

Tax expense comprises current income tax and deferred income tax.

Income Tax is measured at the amount expected to be paid to the Tax Authorities in accordance with the Income Tax Act, 1961 using the tax rates as per the Tax Law that have been enacted or substantively enacted as on the date of the Balance Sheet.

Deferred Tax Assets and Liabilities are recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods in accordance with the Accounting Standard 22 "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India. Deferred Tax Assets and Liabilities are recognized using the tax rates as per the Tax Law that have been enacted or substantively enacted as on the date of the Balance Sheet.

g. Investments

Long Term Investments are carried at cost, however, provision for diminution in the value of Investment is made only if such a decline is other than temporary in the opinion of management.

i. Miscellaneous Expenditure

Expenses incurred for Capital Enhancement are capitalized in Pre-operative Expense (Pending Written off) and 1/5th of said expenses are being written off against the profits of the company.

j. Employee benefits

No Provision has been made for Gratuity during the year as the same is being accounted for on cash basis.

No Provision for earned leave has been made in the accounts for the year. It will be charged to revenue as and when paid.

k. Contingent Liabilities and Provisions

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is possible that there will be an outflow of resources. Contingent Liabilities are not recognized in the financial statements but are disclosed in the note of accounts. Contingent assets are neither recognized and nor disclosed in financial statements.

l. Borrowing Cost

Borrowing cost that are directly attributable to acquisition or construction of qualifying assets has been capitalized as part of such asset as per AS-16 on Borrowing Costs issued by the ICAI. All other borrowing cost are charged to revenue in the period when they are incurred.

m. Earning Per Share

EPS is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average no. of equity shares outstanding during the year as per AS-20 issued by the ICAI.

n. Impairment of assets

Fixed Assets are assessed annually on the balance sheet date having regard to the internal and external source of information so as to analyze whether any impairment of the asset has taken place. If the recoverable amount, represented by the higher of net selling price or the value in use, is less than the carrying amount of cash- generated unit the difference is recognized as impairment loss and debited to P&L account.

Suitable reversals are made in the book of account as and when the impairment loss ceases to exist or shows a decrease.


Mar 31, 2011

1. Accounting Conventions:

(i) The financial statement are prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956, with revenue recogonised and expenses accounted on accrual basis unless otherwise stated.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principle.

(iii) The disclosures made in the accounts are based on the concept of materiality of the transactions involved.

2. Fixed Assets:

Fixed Assets of the company were stated at cost of acquisition less accumulated depreciation. Cost is inclusive of freight, duties, levies, any directly attributable cost of bringing the assets to their working condition for their intended use.

3. Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of the assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Differences between actual and estimates are recognized in the period in which results get materialized.

4. Revenue Recognition:

Revenue/Income from sale of traded goods is recognized on dispatch of goods. Sales are exclusive of Sales Tax, whichever applicable.

Interest on deployment of funds is recognized on accrual basis. Dividend income is recognized on receipt. Profit on sale of investment is recognized on sale of investment.

5. Depreciation:

Depreciation on fixed assets has been charged on Diminishing Balance Method at the rates prescribed in Schedule - XIV of the Companies Act, 1956, as amended in 1993. Depreciation on additions was charged on pro-rata basis relating to the period of use of such assets.

6. Inventories:

All the stocks were valued by the management at cost or net realized value whichever is less.

7. Investment:

Investments are stated at cost.

8. Gratuity:

No Provision has been made for Gratuity during the year as the same is being accounted for on cash basis.

9. Earned Leave:

No Provision for earned leave has been made in the accounts for the year. It will be charged to revenue as and when paid.

10. Contingent Liabilities:

i) In respect of tax matters: NIL

ii) Claims lodged against the company but not acknowledged as debts and pending in the Court of Law- NIL


Mar 31, 2010

1. Accounting Conventions:

(i) The financial statement are prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956, with revenue recogonised and expenses accounted on accrual basis unless otherwise stated.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principle.

(iii) The disclosures made in the accounts are based on the concept of materiality of the transactions involved.

2. Fixed Assets:

Fixed Assets of the company were stated at cost of acquisition less accumulated depreciation. Cost is inclusive of freight, duties, levies, any directly attributable cost of bringing the assets to their working condition for their intended use.

3. Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of the assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Differences between actual and estimates are recognized in the period in which results get materialized.

4. Revenue Recognition:

Revenue/Income from sale of traded goods is recognized on dispatch of goods, Sales are exclusive of Sales Tax, whichever applicable. Interest on deployment of funds is recognized on accrual basis. Dividend income is recognized on receipt. Profit on sale of investment is recognized on sale of investment.

5. Depreciation:

Depreciation on fixed assets has been charged on Diminishing Balance Method at the rates prescribed in Schedule - XIV of the Companies Act, 1956, as amended in 1993. Depreciation on additions was charged on pro-rata basis relating to the period of use of such assets.

6. Inventories:

All the stocks were valued by the management at cost or net realized value whichever is less.

7. Investment:

Investments are stated at cost

8. Gratuity:

No Provision has been made for Gratuity during the year as the same is being accounted for on cash basis.

9. Earned Leave:

No Provision for earned leave has been made in the accounts for the year. It will be charged to revenue as and when paid.

10. Contingent Liabilities:

i) In respect of tax matters: NIL

ii) Claims lodged against the company but not acknowledged as debts and pending in the Court of Law- NIL iii) In accordance with the transitional provisions of AS-22, the deferred tax liability of Rs. 5,31,333/- has been provided during the year. The break-up is as follows:


Mar 31, 2009

1. Accounting Conventions:

(i) The financial statement are prepared underthe historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956, with revenue recogonised and expenses accounted on accrual basis unless otherwise stated.

(ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principle.

(iii) The disclosures made in the accounts are based on the concept of materiality of the transactions involved.

2. Fixed Assets:

Fixed Assets of the company were stated at cost of acquisition less accumulated depreciation. Cost is inclusive of freight, duties, levies, any directly attributable cost of bringing the assets to their working condition for their intended use.

3. Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of the assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Differences between actual and estimates are recognized in the period in which results get materialized.

4. Revenue Recognition:

Revenue/Income from sale of traded goods is recognized on dispatch of goods. Sales are exclusive of Sales Tax, whichever applicable.

Interest on deployment of funds is recognized on accrual basis. Dividend income is recognized on receipt. Profit on sale of investment is recognized on sale of investment.

5. Depreciation:

Depreciation on fixed assets has been charged on Diminishing Balance Method at the rates prescribed in Schedule - XIV of the Companies Act, 1956, as amended in 1993. Depreciation on additions was charged on pro-rata basis relating to the period of use of such assets.

6. Inventories:

All the stocks were valued by the management at cost or net realized value whichever is less.

7. Investment:

Investments are stated at cost.

8. Gratuity:

No Provision has been made for Gratuity during the year as the same is being accounted for on cash basis.

9. Earned Leave:

No Provision for earned leave has been made in the accounts for the year. It will be charged to revenue as and when paid.

 
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