Home  »  Company  »  Saptarishi Agro  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Saptarishi Agro Industries Ltd. Company

Mar 31, 2015

A. ACCOUNTING CONVENTIONS

The financial statements are prepared under historical cost convention. Revenues are recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

Sale is recognized on dispatch of goods from factory.

B. FIXED ASSETS:

(i) Fixed assets are stated at the original cost inclusive of inward freight, incidental expenses related to acquisition and related pre-operational expenses.

(a) All fixed assets are stated at historical cost less accumulated depreciation and any impairment in value.

(b) Depreciation

Depreciation is provided on straight line method as per the useful lives approved by the Board of Directors, which are equal to those provided under schedule II of the companies Act, 2013. Depreciation on assets acquired/ Disposed during the year is provided from/ up to the date acquisition/ Disposal. Depreciation includes amortization of Intangible Assets and lease -hold Assets. The residual value of all the assets is taken as 5% of the cost. The useful lives of the Assets are taken as per the Companies Act 2013, except the following assets as the estimates of useful life of certain Assets based on the technical evaluations are different from those specified in Schedule II which are set out below:-

Name of the Asset Life as per Actual life assumed Companies Act 2013

Front End Loaded JCB 430 z 9 years 15 years

Printer 3 years 5 years

From the date Schedule II came into effect, the carrying amount of an asset is depreciated over the remaining useful life of the asset as per schedule II. Whenever, the remaining useful life of an asset is NIL, the carrying amount is recognized in the opening balance of retained earnings after retaining the residual value.

The company has revised depreciation rates in rates in respect of certain fixed assets w.e.f. 1st April 2014 in line with schedule II of the companies Act, 2013deriving from the useful life specified therein. Accordingly, the company has charged Rs3,44,990/-P.Y. Rs. NIL to reserves in terms of the transactional provisions of said Schedule II.

C. INVESTMENTS:

Investment which are readily realisable and intended to be held for not more one year form the date on which such investment are made are classified as current investment all other investment are classified as long term investment current investment are carried at lower of cost and quoted/ fair value computed category wise long term investment are stated at cost decline in value if any which is not considered temporary in nature, is provided for.

D. FOREIGN CURRENCY TRANSACTION: NIL

E. REVENUE RECOGNITION:

Revenue form sales is recognized when the substantial risk and rewards of ownership in the goods are transferred to the buyer as per terms of the contract and are recognized net of the trade discounts, rebates, sales taxes and excise duties.

F. INVENTORY:

(i) Raw materials, Packing materials, Stores, Spares and Consumables - at cost on Weighted average method.

(ii) Finished goods, Work-in-progress - Lower of the cost & net realizable value.

G. MISCELLANEOUS EXPENDITURE

Preliminary, Public Issue and Deferred Revenue Expenses

Preliminary, Public issue and Deferred Revenue expenses have been deferred and are being written off over a period of 10 years.

H. Provisions, Contingent liabilities, and contingent assets:

Provisions are recognized only when:

provisions are recognized when there is a present obligation as result of a past event it is probable that an outflow of resources embodying economic benefits will be settle the obligation and there is a reliable estimate of the amount of the obligation provisions are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date and are not discounted to its present value.

Contingent liabilities :

contingent liabilities are disclosed when there is a possible obligation arising from past events the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises form past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

I. Earnings per share :

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period earnings considered in ascertaining the company's earning per share is the net profit for the period after deducting equity dividends and any attributable tax the to for the period the weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events sush as bonus shares other than than the conversion of potential equity shares that have changed the number of equity shares outstanding without a corresponding change in resources for the purpose of calculating diluted earnings per share the net profit or loss 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.

J. 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 financial activities of the company are segregated based on the available information.

K. Employee Benefits Disclosures in terms of AS-15 are

a) Retirement benefits in respect of the gratuity & leave en-cashment have been provided on accrual basis & charged to profit and loss account of the year. However the company has not funded the Provision made in this respect of gratuity and leave en-cashment.: Retirement benefits in the form of Provident Fund is accounted on accrued basis and charged to the Profit and Loss account of the year.

b) Defined Benefit Plan: As per the explanations given by the management of the company there are no plans for other benefit plans for the employees of the company like compensated absences, disability benefits etc., Hence valuation by actuary does not arise.

Defined Benefit Plan:

As per the explanations given by the management of the company there are no plans for other benefit plans for the employees of the company like compensated absences, disability benefits etc., Hence valuation by actuary does not arise. Company has only 1 employee on its rolls as on 31.03.2015.


Mar 31, 2014

A. ACCOUNTING CONVENTIONS

The financial statements are prepared under historical cost convention. Revenues are recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

Sale is recognized on dispatch of goods from factory.

B. FIXED ASSETS:

(i) Fixed assets are stated at the original cost inclusive of inward freight, incidental expenses related to acquisition and related pre-operational expenses.

(ii) Depreciation on fixed assets has been provided on straight-line method of the rates prescribed under Schedule XIV of the Companies Act, 1956.

(iii) Depreciation on assets added / disposed off during the year is provided on pro rata basis from the date of addition of such assets.

C. INVENTORY:

(i) Raw materials, Packing materials, Stores, Spares and Consumables - at cost on Weighted average method.

(ii) Finished goods, Work-in-progress - Lower of the cost & net realizable value.

D. MISCELLANEOUS EXPENDITURE

Preliminary, Public Issue and Deferred Revenue Expenses

Preliminary, Public issue and Deferred Revenue expenses have been deferred and are being written off over a period of 10 years.

E. Provisions, Contingent liabilities, and contingent assets:

Provisions are recognized only when:

a) The company has a present obligation as a result of past events.

b) A probable outflow of recourses is expected to settle the obligation and

c) The amount of obligation can be reliably estimated.

Provisions are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the notes for :

(i) Present obligation arising from past events, when it is not probable that an outflow of resourses will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made and

(ii) Possible obligation arising from past events which will be confirmed only by future events not wholly within the control of the company.

Contingent assets are neither recognized nor disclosed in the financial statements.

F. Earnings per share : Basic earning per share is computed by dividing the net profit/ ( loss) after tax (including the post tax effect of extraordinary items, if any) by weighted average number of equity shares outstanding during the period.

G. 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 financial activities of the company are segregated based on the available information.

H. Employee Benefits

Disclosures in terms of AS-15 are

a) Retirement benefits in respect of the gratuity & leave en-cashment have been provided on accrual basis & charged to profit and loss account of the year. However the company has not funded the Provision made in this respect of gratuity and leave en-cashment.: Retirement benefits in the form of Provident Fund is accounted on accrued basis and charged to the Profit and Loss account of the year.

b) Defined Benefit Plan: As per the explanations given by the management of the company there are no plans for other benefit plans for the employees of the company like compensated absences, disability benefits etc., Hence valuation by actuary does not arise.

Defined Benefit Plan:

As per the explanations given by the management of the company there are no plans for other benefit plans for the employees of the company like compensated absences, disability benefits etc., Hence valuation by actuary does not arise.

Company has only 2 employees on its rolls as on 31.03.2014.

I. The name of the Small Scale Industrial Undertakings to whom the Company owes outstanding for a period more than 30 days is as follows, No Provision of Interest Made in books of Accounts (as certified by the management).

As per the information available with the management as on 31.03.2014, the company does not owe any amount to small scale industrial undertakings which is due for a period more than 30 days as certified by the management.

J. RELATED PARTY DISCLOSURE

In accordance with Accounting standard 18, the disclosures required are given below:

Related parties/ Enterprises

1. Calibre Rehabs Ltd

2. Agro Dutch Industries Ltd

K. RELATIONSHIPS: Enterprises in which key management personal are having significant influence.

Key Management Personal:

1. Mr Malvinder Singh - Chairman

2. Mr.Dilsher Singh - Managing Director

RELATED PARTY TRANSACTIONS

a) During the year, the company has not issued / bought back any shares.

b) The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders.

c) Following Shareholders hold equity shares more than 5% of the total equity shares of the Company and no other share holder of the Company holds more than 5 percent of the equity shares.

Micro, Small and Medium Enterprises as required by MSMED Act, 2006 have determined to the extent such parties have been identified on the basis of information available with the company. There are no over dues to parties on account of principal amount and/ or interest and accordingly no addition disclosures have been made.


Mar 31, 2010

The financial statements are prepared under historical cost convention. Revenues are recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses. Sale is recognized on dispatch of goods from factory.

B. FIXED ASSETS:

Fixed assets are stated at the original cost inclusive of inward freight, incidental expenses related to acquisition and related pre-operational

expenses.

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

Depreciation on assets added / disposed off during the year is provided on pro rata basis from the date of addition of such assets.

C. INVENTORY:

Raw materials, Packing materials, Stores, Spares and Consumables at cost on Weighted average method. Finished goods, Work-in- progress Lower of the cost & net realisable value.

D. MISCELLANEOUS EXPENDITURE

Preliminary, Public Issue and Deferred Revenue Expenses

Preliminary, Public issue and Deferred Revenue expenses have been deferred and are being written off over a period of 10 years.

 
Subscribe now to get personal finance updates in your inbox!