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Accounting Policies of Shivagrico Implements Ltd. Company

Mar 31, 2015

A) Fixed assets

(i) Leasehold Land is valued at cost.

(ii) All other fixed assets are stated at cost of acquisition or construction less depreciation.

Capital work-in- Progress :

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

b) Depreciation

(i) Leasehold & Freehold land is not depreciated.

(ii) Depreciation on all other tangible fixed assets is provided on written down value method based on the useful lives of the respective assets in accordance with Schedule II to the Companies Act, 2013 and the guidelines issued by the Institute of Chartered Accountants of India. In respect of the assets, whose useful lives have expired, scrap value at 5% of the respective gross value has been accounted for as carrying cost and the balance amount has been transfered to retained earnings (general reserve). Extra shift depreciation wherever applicable are calculated on actual shift basis in respect of each mill/unit.

(iii) Cost of computer software is amortised over a period of five years

c) Long Term Investments

Long Term Investments are carried at cost.

d) Inventories

Inventories are valued as under

i. Raw Materials : At lower of cost or market value

ii. Finished Goods : At lower of cost or market value

iii. Semi Finished Goods : At lower of cost or market value

iv. Stores & Spares : At cost

v. Other Consumables : At cost

e) Employee benefits

i. Short Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

ii. Post-employment Benefits

(i) Defined Contribution Plans : The Company's state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period in which the employee renders the related service.

(ii) Defined Benefit Plans : The Employees Gratuity Fund Scheme managed by trust is the company's defined benefit plan. Wherever applicable, the present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plan is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Actuarial gains and losses will de recognized immediately in the Profit and Loss Account.

In case of funded plans, the fair value of the plan assets is reduced form the gross obligation under the defined benefit plan to recognize the obligation on the net basis.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on a straight-line basis over the average period until the benefits become vested.

f) 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 asset is one that necessarily takes substantial period of time to get ready for intended use or sale. All other borrowing costs are charged to revenue.

g) Revenue Recognition

(i) Revenue in respect of local sale of products is recognised at the point of despatch to customers.

(ii) Revenue in respect of export sale is recognised on the date of bill of lading.

(iii) Local sales comprise of sale value of goods, excise duty and is net of trade discounts and returns.

(iv) Revenue in respect of conversion charges is recognised on accrual basis.

h) Provision for Taxation

i. Current Tax: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

ii. Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

i) Foreign Exchange Transactions

Transactions relating to exports are translated into Indian Rupees at the rates prevailing at the time of negotiation of export documents by Bank. Foreign currency transactions and forward exchange contracts used to hedge fluctuations in currency are initially recognised at the spot rate on the date of the transaction /contract. Monetary assets and liabilities relating to foreign currency transactions and forward exchange contracts remaining unsettled at the end of the year are translated at year end rates . The difference in translation and realised gains and losses on foreign exchange transactions are recognised in the profit and loss account.

j) Impairment of Assets

Impairment is ascertained at each balance sheet date in respect of the Companies fixed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

k) Provisions and Contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the 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.






Mar 31, 2014

(i) Leasehold Land is valued at cost.

(ii) All other fixed assets are stated at cost of acquisition or construction less depreciation.

b) Depreciation

(i) Leasehold & Freehold land is not depreciated. XIV to the Companies Act, 1956.

(ii) Depreciation on all other fixed assets is provided on written down value method in accordance with Schedule XIV to the Companies Act, 1956. Extra shift depreciation wherever applicable is calculated on actual shift basis in respect of each mill/unit.

c) Long Term Investments

Long Term Investments are carried at cost.

d) Inventories

Inventories are valued as under

i. Raw Materials : At lower of cost or market value

ii. Finished Goods : At lower of cost or market value

iii. Semi Finished Goods : At lower of cost or market value

iv. Stores & Spares : At cost

v. Other Consumables : At cost

e) Employee benefits

i. Short Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

ii. Post-employment Benefits

(i) Defined Contribution Plans : The Company''s state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period in which the employee renders the related service.

(ii) Defined Benefit Plans : The Employees Gratuity Fund Scheme managed by trust is the company''s defined benefit plan. Wherever applicable, the present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plan is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Actuarial gains and losses will de recognized immediately in the Profit and Loss Account.

In case of funded plans, the fair value of the plan assets is reduced form the gross obligation under the defined benefit plan to recognize the obligation on the net basis.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on a straight-line basis over the average period until the benefits become vested.

f) 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 asset is one that necessarily takes substantial period of time to get ready for intended use or sale. All other borrowing costs are charged to revenue.

g) Revenue Recognition

(i) Revenue in respect of local sale of products is recognised at the point of despatch to customers.

(ii) Revenue in respect of export sale is recognised on the date of bill of lading.

(iii) Local sales comprise of sale value of goods, excise duty and is net of trade discounts and returns.

(iv) Revenue in respect of conversion charges is recognised on accrual basis.

h) Provision for Taxation

i. Current Tax: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

ii. Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

i) Foreign Exchange Transactions

Transactions relating to exports are translated into Indian Rupees at the rates prevailing at the time of negotiation of export documents by Bank. Foreign currency transactions and forward exchange contracts used to hedge fluctuations in currency are initially recognised at the spot rate on the date of the transaction /contract. Monetary assets and liabilities relating to foreign currency transactions and forward exchange contracts remaining unsettled at the end of the year are translated at year end rates . The difference in translation and realised gains and losses on foreign exchange transactions are recognised in the profit and loss account.

j) Impairment of Assets

Impairment is ascertained at each balance sheet date in respect of the Companies fixed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.


Mar 31, 2013

A) Fixed assets

(i) Leasehold Land is valued at cost.

(ii) All other fixed assets are stated at cost of acquisition or construction less depreciation.

b) Depreciation

(i) Leasehold & Freehold land is not depreciated.XIV to the Companies Act, 1956.

(ii) Depreciation on all other fixed assets is provided on written down value method in accordance with Schedule XIV to the Companies Act, 1956. Extra shift depreciation wherever applicable is calculated on actual shift basis in respect of each mill/unit.

c) Long Term Investments

Long Term Investments are carried at cost.

d) Inventories

Inventories are valued as under

i. Raw Materials : At lower of cost or market value

ii. Finished Goods : At lower of cost or market value

iii. Semi Finished Goods : At lower of cost or market value

iv. Stores & Spares : At cost

v. Other Consumables : At cost

e) Employee benefits

i. Short Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

ii. Post-employment Benefits

(i) Defined Contribution Plans : The Company''s state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period in which the employee renders the related service.

(ii) Defined Benefit Plans : The Employees Gratuity Fund Scheme managed by trust is the company''s defined benefit plan. Wherever applicable, the present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plan is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Actuarial gains and losses will de recognized immediately in the Profit and Loss Account.

In case of funded plans, the fair value of the plan assets is reduced form the gross obligation under the defined benefit plan to recognize the obligation on the net basis.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on a straight-line basis over the average period until the benefits become vested.

f) 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 asset is one that necessarily takes substantial period of time to get ready for intended use or sale. All other borrowing costs are charged to revenue.

g) Revenue Recognition

(i) Revenue in respect of local sale of products is recognised at the point of despatch to customers.

(ii) Revenue in respect of export sale is recognised on the date of bill of lading.

(iii) Local sales comprise of sale value of goods, excise duty and is net of trade discounts and returns.

(iv) Revenue in respect of conversion charges is recognised on accrual basis.

h) Provision for Taxation

i. Current Tax: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

ii. Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

i) Foreign Exchange Transactions

Transactions relating to exports are translated into Indian Rupees at the rates prevailing at the time of negotiation of export documents by Bank. Foreign currency transactions and forward exchange contracts used to hedge fluctuations in currency are initially recognised at the spot rate on the date of the transaction /contract. Monetary assets and liabilities relating to foreign currency transactions and forward exchange contracts remaining unsettled at the end of the year are translated at year end rates . The difference in translation and realised gains and losses on foreign exchange transactions are recognised in the profit and loss account.

j) Impairment of Assets

Impairment is ascertained at each balance sheet date in respect of the Companies fixed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.


Mar 31, 2012

A) Fixed assets

(i) Leasehold Land is valued at cost.

(ii) All other fixed assets are stated at cost of acquisition or construction less depreciation.

b) Depreciation

(i) Leasehold & Freehold land is not depreciated.XIV to the Companies Act, 1956.

(ii) Depreciation on all other fixed assets is provided on written down value method in accordance with Schedule X!V to the Companies Act, 1956. Extra shift depreciation wherever applicable is calculated on actual shift basis in respect of each mill/unit. '

c) Long Term Investments

Long Term Investments are carried at cost.

d) Inventories

Inventories are valued as under

i. Raw Materials : At lower of cost or market value

ii. Finished Goods : At lower of cost or market value

iii. Semi Finished Goods : At lower of cost or market value

iv. Stores & Spares : At cost

v. Other Consumables : At cost

e) Employee benefits

i. Short Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

ii Post-employment Benefits

(i) Defined Contribution Plans: The Company's state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period in which the employee renders the related service.

(ii) Defined Benefit Plans : The Employees Gratuity Fund Scheme managed by trust is the company's defined benefit plan. Wherever applicable, the present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plan is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Actuarial gains and losses will de recognized immediately in the Profit and Loss Account.

In case of funded plans, the fair value of the plan assets is reduced form the gross obligation under the defined benefit plan to recognize the obligation on the net basis.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on a straight-line basis over the average period until the benefits become vested.

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

f) 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 asset is one that necessarily takes substantial period of time to get ready for intended use or sale. All other borrowing costs are charged to revenue.

g) Revenue Recognition

(i) Revenue in respect of local sale of products is recognised at the point of despatch to customers.

(ii) Revenue in respect of export sale is recognised on the date of bill of lading.

(iii) Local sales comprise of sale value of goods, excise duty and is net of trade discounts and returns.

(iv) Revenue in respect of conversion charges is recognised on accrual basis.

h) Provision for Taxation

i. Current Tax: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

ii. Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date,

ii) Foreign Exchange Transactions

Transactions relating to exports are translated into Indian Rupees at the rates prevailing at the time of negotiation of export documents by Bank. Foreign currency transactions and forward exchange contracts used to hedge fluctuations in currency are initially recognised at the spot rate on the date of the transaction /contract. Monetary assets and liabilities relating to foreign currency transactions and forward exchange contracts remaining unsettled at the end of the year are translated at year end rates . The difference in translation and realised gains and losses on foreign exchange transactions are recognised in the profit and loss account.

i) Impairment of Assets

Impairment is ascertained at each balance sheet date in respect of the Companies fixed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

ii. The company has only two classes of shares referred to as equity shares and cumulative redeemable preference shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share.


Mar 31, 2010

(a) Fixed Assets

(i) Leasehold Land is valued at cost.

(ii) All other fixed assets are stated at cost of acquisition or construction less depreciation. Certain assets were revalued during the financial year 1992-93 and the resultant surplus was added to the cost of the asset.

(b) Foreign Exchange Transactions

(i) Transaction in foreign currencies are recorded at exchange rates existing at the time of the transaction and exchange difference arising from foreign currency transactions are dealt in Profit & Loss Account.

(ii) Foreign currency monetary items at year end are being converted at closing rates and exchange difference are dealt with in Profit & Loss Account.

(c) Depreciation

(i) Leasehold & Freehold land is not depreciated.

(ii) Depreciation on all other fixed assets is provided on written down value method in accordance with Schedule XIV to the Companies Act, 1956. Extra shift depreciation wherever applicable is calculated on actual shift basis in respect of each mill/unit.

(d) Investments

Long term Investments are stated at cost.

(e) Inventories

(i) Finished and Semi-finished products produced and purchased by the company are carried at lower of cost or net realisable value.

(ii) Work-in-Progress is carried at lower of cost or net realisable value.

(iii) Raw materials purchased are carried at lower of cost or net realisable value and recovered materials during processes at estimated realisable value.

(iv) Stores and Spares are carried at cost.

(v) Other consumables are carried at cost.

(vi) Stocks are valued using FIFO basis.

(f) Employee Benefits

(a) Short Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

(b) Post-employment Benefits

(i) Defined Contribution Plans : The Companys state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period in which the employee renders the related service.

(ii) Defined Benefit Plans : The Employees Gratuity Fund Scheme managed by trust is the companys defined benefit plan. Wherever applicable, the present value of the obligation under such defined benefit plan is determined based on actuaial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plan is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Actuarial gains and losses will de recognized immediately in the Profit and Loss Account.

In case of funded plans, the fair value of the plan assets is reduced form the gross obligation under the defined benefit plan to recognize the obligation on the net basis.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on a straight-line basis over the average period until the benefits become vested.

(g) Revenue Recognition

(i) Revenue in respect of local sale of products is recognised at the point of despatch to customers.

(ii) Revenue in respect of export sale is recognised on the date of bill of lading.

(iii) Local sales comprise of sale value of goods, excise duty and is net of trade discounts and returns.

(iv) Revenue in respect of conversion contracts is recognised on Accrual basis.

(h) 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 asset is one that necessarily takes substantial period of time to get ready for intended use or sale. All other borrowing costs are charged to revenue.

(i) Provision for Taxation

(i) Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

(ii) Deferred tax :

The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

 
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