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Accounting Policies of Sampre Nutritions Ltd. Company

Mar 31, 2015

  1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

 

The financial statements of the Company have been prepared in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant
provisions of the Companies Act, 2013. The financial statements have been prepared on accrual
basis under the historical cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the previous year.

 

  1. Use of estimates

 

The preparation of the financial statements in conformity with Indian GAAP requires the Management
to make estimates and assumptions considered in the reported amounts of assets and liabilities
(including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the financial statements are prudent
and reasonable. Future results could differ due to these estimates and the differences between
the actual results and the estimates are recognized in the periods in which the results are known
/ materialize.

 

  1. Inventories

 

The basis for valuation of inventories is as under:

 

1

Raw Materials &
Packing Materials

Cost or realizable value whichever is lower. Cost is computed on the basis of
weighted average method including freight and related expenses reduced by
CENVAT benefits.

2

Work-in-progress

At cost or net realizable value, whichever is lower (Cost includes materials
and related overheads)

3

Finished Goods

At cost or net realizable value, whichever is lower.

4

Stores, spare &
consumables

Cost or realizable value whichever is lower. Cost is ascertained on weighted
average basis.

 

  1. . Other income

 

Interest income is accounted on accrual basis. Dividend income, if any is accounted for when the
right to receive it is established.

 

  1. . Tangible fixed assets

 

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any.
The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying
fixed assets up to the date the asset is ready for its intended use and other incidental expenses
incurred up to that date. Exchange differences arising on restatement / settlement of long-term
foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the
cost of the respective assets and depreciated over the remaining useful life of such assets.
Machinery spares which can be used only in connection with an item of fixed asset and whose
use is expected to be irregular are capitalized and depreciated over the useful life of the principal
item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if
such expenditure results in an increase in the future benefits from such asset beyond its previously
assessed standard of performance.

 

  1. Government grants, subsidies and export incentives

Subsidy received is credited to reserves and surplus.

 

  1. Employee benefits

 

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated
absences, long service awards and post-employment medical benefits.

 

Defined contribution plans

 

The Company’s contribution to provident fund and superannuation fund are considered as defined
contribution plans and are charged as an expense as they fall due based on the amount of
contribution required to be made.

 

Defined benefit plans

 

For defined benefit plans in the form of gratuity fund and post-employment medical benefits, the
cost of providing benefits is determined in accordance with the rules of the Company and are
provided for based on the assumptions that such benefits are payable to employees at the end of
the accounting year.

 

 

 


Mar 31, 2014

I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

II. Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

III. Inventories

The basis for valuation of inventories is as under:

1 Raw Materials & Packing Materials

Cost or realizable value whichever is lower. Cost is computed on the basis of weighted average method including freight and related expenses reduced by CENVAT benefits.

2 Work-in-progress

At cost or net realizable value, whichever is lower (Cost includes materials and related overheads)

3 Finished Goods

At cost or net realizable value, whichever is lower

4 Stores, spare & consumables

Cost or realizable value whichever is lower. Cost is ascertained on weighted average basis.

IV. Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

V. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

VI. Depreciation and amortization

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

VII. Revenue recognition

Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

VIII. Other income

Interest income is accounted on accrual basis. Dividend income, if any is accounted for when the right to receive it is established.

IX. Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

X. Government grants, subsidies and export incentives

Subsidy received is credited to reserves and surplus.

XI. Employee benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits.

Defined contribution plans

The Company''s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined benefit plans

For defined benefit plans in the form of gratuity fund and post-employment medical benefits, the cost of providing benefits is determined in accordance with the rules of the Company and are provided for based on the assumptions that such benefits are payable to employees at the end of the accounting year.


Mar 31, 2013

I BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

II Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

IV Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

V Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

VI Depreciation and amortization

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

VII Revenue recognition

Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

VIII Other income

Interest income is accounted on accrual basis. Dividend income, if any is accounted for when the right to receive it is established.

IX Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

X Government grants, subsidies and export incentives

Subsidy received is credited to reserves and surplus.

XI Employee benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits.

Defined contribution plans

The Company''s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined benefit plans

For defined benefit plans in the form of gratuity fund and post-employment medical benefits, the cost of providing benefits is determined in accordance with the rules of the Company and are provided for based on the assumptions that such benefits are payable to employees at the end of the accounting year.


Mar 31, 2011

(A) The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The financial statements have been prepared under the historical cost convention as going concern, in accordance with the Generally Accepted Accounting Principles to comply in all material aspects with the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

(B) Revenue Recognition:

1. Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer/agent, which coincides with the passing of possession to the buyer/agent.

2. Sales are inclusive of Excise duty and all recoveries except Sales Tax.

(C) Subsidy/Benefits:

Subsidy received is credited to reserves & surplus.

(D) Fixed Assets and Depreciation:

1. Fixed Assets are stated at cost less accumulated depreciation, cost includes cost of installation / commissioning and apportioned pre - operative expenses reduced by CENVAT credit availed by the company.

2. Depreciation on fixed assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act 1956.

(E) Foreign Exchange Transactions:

Foreign exchange transactions of revenue in nature are accounted at the exchange rates prevailing on the date of transaction and are recognized in the Profit and Loss Account. There are no Foreign Exchange Transactions with respect to Assets and Liabilities.

(F) Inventories:

The basis of valuation of inventories is as under:

(A) Impairment of Assets

Management periodically assess using external and internal sources whether there is an indication that an Asset may be impaired. An impairment occurs where the carrying value exceeds the recoverable amount. The impairment loss of the assets net selling price or present value of future cash flows expected to arise from the continuing use of the assets and its eventual disposal.

(B) Employee / Retirement Benefits:

a. Provident Fund:

Company's contribution to provident fund is accounted on accrual basis and is charged to revenue account.

b. Gratuity and Leave Encashment:

Liability in respect of leave encashment and gratuity in accordance with the rules of the company is provided for based on the assumption that such benefits are payable to employees at the end of the accounting year.

(C) Borrowing Cost:

Interest on funds borrowed for acquisition of assets is being capitalized upto the date & the related assets are put to use. Interest on funds borrowed for other than acquisition of assets is recognized in the Profit and Loss Account.

Interest on SBI Working Capital loan is not provided for the financial year.

(D) Taxes on Income:

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future.

(E) Provisions:

Provisions are recognized where there is a present obligations as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which the reliable estimate can be made. These are reviewed at each balance sheet and adjusted to reflect the current best estimate.


Mar 31, 2010

(A) The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The financial statements have b een prepared under the historical cost convention as going concern, in accordance with the Generally Accepted Accounting Principles to comply in all material aspects with the Accounting Standards issued by the institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 956.

(B) Revenue Recognition

1. Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer/agent, which coincides with the passing of possession to the buyer/agent.

2. Sales are inclusive of Excise duty and all recoveries except Sales Tax.

(C) Subsidy/Benefits

Subsidy received is credited to reserves & surplus.

(D) Fixed Assets and Depreciation

1. Fixed Assets are stated at cost less accumulated depreciation, cost includes cost of installation / commissioning and apportioned pre - operative expenses reduced by CENVAT credit availed by the company.

2. Depreciation on fixed assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act 1956.

(E) Foreign Exchange Transactions

Foreign exchange transactions of revenue in nature are accounted at the exchange rates prevailing on the date of transaction and are recognized in the Profit and Loss Account. There are no Foreign Exchange Transactions with respect to Assets and Liabilities.

(G) Impairment of Assets

Management periodically assess using external and internal sources whether there is an indication that an Asset may be impaired. An impairment occurs where the carrying value exceeds the recoverable amount. The impairment loss of the assets net selling price or present value of future cash flows expected to arise from the continuing use of the assets and its eventual disposal.

(H) Employee / Retirement Benefits

a. Provident Fund:

Companys contribution to provident fund is accounted on accrual basis and is charged to revenue account.

b. Gratuity and Leave Encashment:

Liability in respect of leave encashment and gratuity in accordance with the rules of the company is provided for based on the assumption that such benefits are payable to employees at the end of the accounting year.

(I) Borrowing Cost

Interest on funds borrowed for acquisition of assets is berhg capitalized upto the date the related assets are put to use. Interest on funds borrowed for other than acquisition of assets is recognized in the Profit and Loss Account.

Interest on SBI Working Capital loan is not provided for the financial year.

(J) Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future.

(K) Provisions

Provisions are recognized where there is a present obligations as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which the reliable estimate can be made. These are reviewed at each balance sheet and adjusted to reflect the current best estimate.


Mar 31, 2009

BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

(A) The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The financial statements have been prepared under the historical cost convention as going concern, in accordance with the Generally Accepted Accounting Principles to comply in all material aspects with the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 956.

(B) Revenue Recognition:

1. Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer/agent, which coincides with the passing of possession to the buyer/agent.

2. Sales are inclusive of Excise duty and all recoveries except Sales Tax.

(C) Subsidy/Benefits:

Subsidy received is credited to reserves & surplus.

(D) Fixed Assets and Depreciation:

1. Fixed Assets are stated at cost less accumulated depreciation, cost includes cost of installation / commissioning and apportioned pre - operative expenses reduced by CENVAT credit availed by the company.

2. Depreciation on fixed assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act 1956.

(E) Foreign Exchange Transactions:

Foreign exchange transactions of revenue in nature are accounted at the exchange rates prevailing on the date of transaction and are recognized in the Profit and Loss Account. There are no Foreign Exchange Transactions with respect to Assets and Liabilities.

(F) Inventories:

The basis of valuation of inventories is as under:

I Raw Materials & Packing Materials Cost or realizable value which ever is lower. Cost is computed on the basis of weighted average method including freight and related expenses reduced by CENVAT benefits.

II Work-in - process At cost or net realizable value, which ever is lower. (Cost includes materials and related overheads)

III Finished Goods At cost or net realizable value, which ever is lower

IV Stores, spares & consumables Cost or realizable value which ever is lower. Cost is ascertained on Weighted average basis.

(G) Impairment of Assets .

Management periodically assess using external and internal sources whether there is an indication that an Asset may be impaired. An impairment occurs where the carrying value exceeds the recoverable amount. The impairment loss of the assets net selling price or present value of future cash flows expected to arise from the continuing use of the assets and its eventual disposal. (H) Employee / Retirement Benefits:

a. Provident Fund:

Companys contribution to provident fund is accounted on accrual basis and is charged to revenue account.

b. Gratuity and Leave Encashment:

Liability in respect of leave encashment and gratuity in accordance with the rules of the company is provided for based on the assumption that such benefits are payable to employees at the end of the accounting year.

(I) Borrowing Cost:

Interest on funds borrowed for acquisition of assets is being capitalized upto the date the related assets are put to use. Interest on funds borrowed for other than acquisition of assets is recognized in the Profit and Loss Account.

Interest on SBI Working Capital loan & Termloan is not provided for the financial year.

(J) Taxes on Income:

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carryforward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future.

(K) Provisions:

Provisions are recognized where there is a present obligations as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which the reliable estimate can be made. These are reviewed at each balance sheet and adjusted to reflect the current best estimate.

 
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