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Accounting Policies of Ocean Agro (India) Ltd. Company

Mar 31, 2015

1.1 System of Accounting:

a) Financial Statements are based on historical cost. These costs are not adjusted to reflect the impact of the changing value in the Purchasing Power of money.

b) The Company follows the merchantile system of accounting and recognises income and expenditure on an accrual basis, except interest on margin money deposit with Bank of Baroda, and Gratuity.

1.2 Revenue Recognition:

Sales are inclusive of Excise Duty and are net of Trade Discounts and sales returns.

1.3 Fixed Assets : Fixed Assets are carried at cost of acquisition/installation. Fixed Assets are shown net of accumulated depreciation and amortised amount (except on Leasehold Land). Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing cost incurred upto the date of commencing operations, but excludes duties and taxes that are recoverable subsequently from taxing authorities.

1.4 Depreciation : 'Depreciation on all the assets is being provided on "Straight Line Method" in accordance with the method prescribed in schedule II of the company act 2013. Depreciation on additions during the year is being provided on pro-rata. Plant & Machinery which were not put to use during the year were not considered for the purpose of depreciation. The same would be considered for depreciation as and when the said machinery would be put to use again. During the year no depreciation has been provided on slow moving items.

1.5 Inventories:

a) Raw Materials & Packing Materials are valued at cost. Cost is arrived at on FIFO basis. However, as per AS-2 issued by ICAI, stock should be valued at cost or net realisable value whichever is lower. According to the management, there are no items having realisable value less than the cost.

b) Materials in Process are not valued.

c) Finished goods are valued at cost. Cost is arrived at considering direct material, direct labour and direct factory overheads. Finished stocks lying in the factory are valued exclusive of excise duty except the stocks lying in Duty Paid Godowns and Company's C & F distributors which are valued inclusive of excise duty.

d) At present Stores, Machinery Spares are charged to revenue as and when purchased.

1.6 Retirement Benefits:

Company's contribution to Provident Fund and ESIC are charged to Profit & Loss Account. Gratuity is charged to P&L a/c on actual payment basis and not on acturial valuation as at year end as against AS-15 "Accounting for retirement Benefits".

1.7 Borrowing Cost:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as required by AS-16 "Borrowing Costs".

During the year, there are no borrowing cost attributable to the acquisition of qualifying assets that are required to be capitalized. Hence all borrowing cost have been charged to revenue.

1.8 Taxation:

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws.




Mar 31, 2014

1.1 System of Accounting:

a) Financial Statements are based on historical cost. These costs are not adjusted to reflect the impact of the changing value in the Purchasing Power of money.

b) The Company follows the merchantile system of accounting and recognises income and expenditure on an accrual basis, except interest on margin money deposit with Bank of Baroda, and Gratuity.

1.2 Revenue Recognition:

Sales are inclusive of Excise Duty and are net of Trade Discounts and sales returns.

1.3 Fixed Assets : Fixed Assets are carried at cost of acquisition/installation. Fixed Assets are shown net of accumulated depreciation and amortised amount (except on Leasehold Land). Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing cost incurred upto the date of commencing operations, but excludes duties and taxes that are recoverable subsequently from taxing authorities.

1.4 Depreciation : Depreciation on all the assets is being provided on "Straight Line Method" in accordance with the provisions of Section205(2)(a) of the Companies Act, 1956 at the rate specified in Schedule XIV to the said Act. Depreciation on additions during the year is being provided on pro-rata as required by Schedule XIV to the Companies Act, 1956.Plant & Machinery which were not put to use during the year were not considered for the purpose of depreciation. The same would be considered for depreciation as and when the said machinery would be put to use again. During the year no depreciation has been provided on slow moving items.

1.5 Inventories:

a) Raw Materials & Packing Materials are valued at cost. Cost is arrived at on FIFO basis. However, as per AS-2 issued by ICAI, stock should be valued at cost or net realisable value whichever is lower. According to the management, there are no items having realisable value less than the cost.

b) Materials in Process are not valued.

c) Finished goods are valued at cost. Cost is arrived at considering direct material, direct labour and direct factory overheads. Finished Goods estimated at MRP less Estimate cost work out to make it at cost. Finished stocks lying in the factory are valued exclusive of excise duty except the stocks lying in Duty Paid Godowns and Company''s C & F distributors which are valued inclusive of excise duty.

d) At present Stores, Machinery Spares are charged to revenue as and when purchased.

1.6 Retirement Benefits:

Company''s contribution to Provident Fund and ESIC are charged to Profit & Loss Account. Gratuity is charged to P&L a/c on actual payment basis and not on acturial valuation as at year end as against AS-15 "Accounting for retirement Benefits".

1.7 Borrowing Cost:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as required by AS-16 "Borrowing Costs".

During the year, there are no borrowing cost attributable to the acquisition of qualifying assets that are required to be capitalized. Hence all borrowing cost have been charged to revenue.

1.8 Taxation:

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws.


Mar 31, 2013

1.1 System of Accounting:

a) Financial Statements are based on historical cost. These costs are not adjusted to reflect the impact of the changing value in the Purchasing Power of money.

b) The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis, except interest on margin money deposit with Bank of Baroda, and Gratuity.

1.2 Revenue Recognition:

Sales are inclusive of Excise Duty and are net of Trade Discounts and sales returns.

1.3 Fixed Assets : Fixed Assets are carried at cost of acquisition/installation. Fixed Assets are shown net of accumulated depreciation and amortised amount (except on Leasehold Land). Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing cost incurred upto the date of commencing operations, but excludes duties and taxes that are recoverable subsequently from taxing authorities.

1.4 Depreciation : Depreciation on all the assets is being provided on "Straight Line Method" in accordance with the provisions of Section205(2)(a) of the Companies Act, 1956 at the rate specified in Schedule XIV to the said Act. Depreciation on additions during the year is being provided on pro-rata as required by Schedule XIV to the Companies Act 1956.Plant & Machinery which were not put to use during the year were not considered for the purpose of depreciation. The same would be considered for depreciation as and when the said machinery would be put to use again. During the year no depreciation has been provided on slow moving items.

1.5 Inventories :

a) Raw Materials & Packing Materials are valued at cost. Cost is arrived at on FIFO basis. However, as per AS-2 issued by ICAI, stock should be valued at cost or net realisable value whichever is lower. According to the management, there are no items having realisable value less than the cost.

b) Materials in Process are not valued.

c Finished goods are valued at cost. Cost is arrived at considering direct material, direct labour and direct factory overheads. Finished Goods estimated at MRP less Estimate cost work out to make it at cost. Finished stocks lying in the factory are valued exclusive of excise duty except the stocks lying in Duty Paid Godowns and Company''s C & F distributors which are valued inclusive of excise duty

d) At present Stores, Machinery Spares are charged to revenue as and when purchased.

1.6 Retirement Benefits :

Company''s contribution to Provident Fund and ESIC are charged to Profit & Loss Account. Gratuity is charged to P&L a/c on actual payment basis and not on acturial valuation as at year end as against AS-15 "Accounting for retirement Benefits".

1.7 Borrowing Cost:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as required by AS-16 "Borrowing Costs".

During the year, there are no borrowing cost attributable to the acquisition of qualifying assets that are required to be capitalized Hence all borrowing cost have been charged to revenue

1.8 Taxation:

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws.

Provision for deferred tax is made for timing differences arising between the taxable income and accounting income computed using the tax rates and the tax laws that have been enacted or substantively enacted as on the Balance Sheet date

Deferred tax assets are recognized only if there is a virtual certainty that they will be realized and reviewed for the appropriateness of their carrying values at each Balance Sheet date.


Mar 31, 2012

1.1 System of Accounting:

a) Financial Statements are based on historical cost. These costs are not adjusted to reflect the impact of the changing value in the Purchasing Power of money.

b) The Company follows the merchantile system of accounting and recognises income and expenditure on an accrual basis, except interest on margin money deposit with Bank of Baroda, and Gratuity.

1.2 Revenue Recognition:

Sales are inclusive of Excise Duty and are net of Trade Discounts and sales returns.

1.3 Fixed Assets : Fixed Assets are carried at cost of acquisition/installation. Fixed Assets are shown net of accumulated depreciation and amortised amount (except on Leasehold Land). Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing cost incurred upto the date of commencing operations, but excludes duties and taxes that are recoverable subsequently from taxing authorities.

1.4 Depreciation : Depreciation on all the assets is being provided on "Straight Line Method" in accordance with the provisions of Section205(2)(a) of the Companies Act, 1956 at the rate specified in Schedule XIV to the said Act. Depreciation on additions during the year is being provided on pro-rata as required by Schedule XIV to the Companies Act, 1956.Plant & Machinery which were not put to use during the year were not considered for the purpose of depreciation. The same would be considered for depreciation as and when the said machinery would be put to use again. During the year no depreciation has been provided on slow moving items.

1.5 Investment: There are no investments.

1.6 Inventories:

a) Raw Materials & Packing Materials are valued at cost. Cost is arrived at on FIFO basis. However, as per AS-2 issued by ICAI, stock should be valued at cost or net realisable value whichever is lower. According to the management, there are no items having realisable value less than the cost.

b) Materials in Process are not valued.

c) Finished goods are valued at cost. Cost is arrived at considering direct material, direct labour and direct factory overheads. Finished Goods estimated at MRP less Estimate cost work out to make it at cost. Finished stocks lying in the factory are valued exclusive of excise duty except the stocks lying in Duty Paid Godowns and Company's C & F distributors which are valued inclusive of excise duty.

d) At present Stores, Machinery Spares are charged to revenue as and when purchased.

1.7 Retirement Benefits:

Company's contribution to Provident Fund and ESIC are charged to Profit & Loss Account. Gratuity is charged to P&L a/c on actual payment basis and not on acturial valuation as at year end as against AS-15 "Accounting for retirement Benefits".

1.8 Borrowing Cost:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as required byAS-16 "Borrowing Costs".

During the year, there are no borrowing cost attributable to the acquisition of qualifying assets that are required to be capitalized. Hence all borrowing cost have been charged to revenue.

1.9 Taxation:

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for timing differences arising between the taxable income and accounting income computed using the tax rates and the tax laws that have been enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognized only if there is a virtual certainty that they will be realized and reviewed for the appropriateness of their carrying values at each Balance Sheet date.


Mar 31, 2010

1.1 System of Accounting:

a) Financial Statements are based on historical cost. These costs are not adjusted to reflect the impact of the changing value in the Purchasing Power of money.

b) The Company follows the merchantile system of accounting and recognises income and expenditure on an accrual basis, except interest on margin money deposit with Bank of Baroda, and Gratuity.

1.2 Revenue Recognition:

Sales are inclusive of Excise Duty and are net of Trade Discounts and sales returns.

1.3 Fixed Assets : Fixed Assets are carried at cost of acquisition/installation. Fixed Assets are shown net of accumulated depreciation and amortised amount (except on Leasehold Land). Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing cost incurred upto the date of commencing operations, but excludes duties and taxes that are recoverable subsequently from taxing authorities.

1.4 Depreciation : Depreciation on all the assets is being provided on "Straight Line Method" in accordance with the provisions of Section205(2)(a) of the Companies Act, 1956 at the rate specified in Schedule XIV to the said Act. Depreciation on additions during the year is being provided on pro-rata as required by Schedule XIV to the Companies Act, 1956.

1.5 Investment: There are no investments.

1.6 Inventories:

a) Raw Materials & Packing Materials are valued at cost. Cost is arrived at on FIFO basis. However, as per AS-2 issued by ICAI, stock should be valued at cost or net realisable value whichever is lower. According to the management, there are no items having realisable value less than the cost.

b) Materials in Process are not valued.

c) Finished goods are valued at cost. Cost is arrived at considering direct material, direct labour and direct factory overheads. Finished stocks lying in the factory are valued exclusive of excise duty except the stocks lying in Duty Paid Godowns and Companys C & F distributors which are valued inclusive of excise duty.

d) At present Stores, Machinery Spares are charged to revenue as and when purchased.

1.7 Retirement Benefits:

Companys contribution to Provident Fund and ESIC are charged to Profit & Loss Account. Gratuity is charged to P&L a/c on actual payment basis and not on acturial valuation as at year end as against AS-15 "Accounting for retirement Benefits".

1.8 Borrowing Cost:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as required by AS-16 "Borrowing Costs".

During the year, there are no borrowing cost attributable to the acquisition of qualifying assets that are required to be capitalized. Hence all borrowing cost have been charged to revenue.

1.9 Miscellaneous expenditure:

Apart of Marketing, Selling & Distribution Expense treated as deferred revenue expenditure, Balance of which Rs. 7.15 lacs has been amortised during the year.

1.10 Taxation:

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws.

Provision for deferred tax is made for timing differences arising between the taxable income and accounting income computed using the tax rates and the tax laws that have been enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognized only if there is a virtual certainty that they will be realized and reviewed for the appropriateness of their carrying values at each Balance Sheet date.

 
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