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Accounting Policies of Simran Farms Ltd. Company

Mar 31, 2015

A) Basis of preparation of Financial Statements

a) Method of Accounting

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India, including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

GAAP comprises mandatory Accounting standard as Prescribed under section 133 of the Companies Act, 2013. read with rule 7 of companies (Accounts) rules, 2014.

The Company maintains its accounts on accrual basis except insurance claims and claims on Parent Birds, Commercial Birds & Hatching eggs, sale of manure and gunny bags which are accounted on cash basis.

B) Valuation of Inventories

i) Inventories of stores, medicines, feeds etc. are valued at cost and is determined using first in first out basis.

ii) Hatching eggs are valued at estimated cost or net realizable value whichever is less.

iii) Pure Line Birds & Grand Parent are valued at initial purchase price plus estimated cost of growing and overheads of birds live on balance sheet date.

iv) Parent Stock of Birds and commercial birds are valued at purchase price plus the estimated cost of growing and overheads.

v) Manure and Gunny Bags accounted for on actual sale basis.

C) Fixed Assets

i) Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment loss, if any, where cost is inclusive of duties, taxes, incidental expenses erection / commissioning expenses and preliminary and pre-operative expenses till date of commencement of production and all necessary expenses to bring the asset to its working condition.

ii) Capital Work in Progress comprises the cost of Fixed Asset that are yet not ready for their intended use at the Balance Sheet date.

D) Depreciation

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

E) Revenue Recognition

i) Revenues from sale of goods are recognized when risks and rewards of ownership of goods are passed on to the customers, which are generally on dispatch of goods and are recorded net of taxes and duties.

ii) Income from services are recognized on prorata basis i.e. as and when service are rendered.

F) Investment

Investment are classified as Current Investments and Long Term Investments based on intention of the management at the time of purchase. Current investments are stated at the lower of the cost and fair value and long term investments are stated at cost.

G) Retirement / Post Retirement Benefits

The Company Provides retirement benefits in the form of gratuity and leave encashment. The Company has worked out the liability towards gratuity based on actuarial valuation through LIC and estimated the liabilitytowards Leave Encashment and has provided entire liabilities during the year.

H) Borrowing Cost

Borrowing cost that are directly attributable to the acquisition, Construction or production of the qualifying assets are capitalized as part of the cost of such assets. A qualifying assets is one that necessarily take substantial period of time to get ready for intended use. All other borrowing cost are charged to the statement of profit and loss account.

I) Operating Lease

Lease arrangements where risks and rewards incidental to the ownership of an asset substantially vest with lessor are classified as operating lease. Rental income on assets given and rental expense on assets obtained under operating lease arrangements are recognized in the statement of profit and loss for the year as per the terms and conditions of the respective lease agreement.

J) Earning Per Share

Basic & Diluted earning per equity share are recorded in accordance with AS-20 "Earnings Per Share".

Earnings per equity share are calculated by dividing Net profit attributable to the equity shareholder by weighted average number of equity shares outstanding during the year.

K) Taxes on income

1) Tax expenses for a year comprises of current tax and Deferred tax.

2) Tax on income for the current year is determined on the basis of the taxable income and tax Credits computed in accordance with the provision of Income Tax Act,1961, and based in Expected outcome of Assessments/ Appeals.

3) Deferred Tax is recognized on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date. Deferred tax assets are recognized and carried forward to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

4) Minimum alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay income tax higher than the computed under MAT, during the period under which MAT is permitted to be set off under applicable laws.

5) In the year in which MAT credit become eligible to be recognized as an asset in accordance with recommendation contained in the guidance Note issued by the Chartered Accountants of India (ICAI), the said asset is created by way of a credit to the statement of profit and loss account shown as MAT credit entitlement. The company reviews the same at each Balance sheet date and writes down the carrying Amount of MAT credit entitlement to the extent there is longer convincing evidence to the effect that company will pay Income tax higher than MAT during the specified period.

L) Research and Development

Revenue expenditure on research and development is charged to Statement of Profit and loss for the year.

M) Contingent Liability

Liabilities which are material and whose future outcome can not ascertained with reasonable certainty are treated as contingent and disclosed by way of notes to the accounts.

N) Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

(b) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.


Mar 31, 2014

A) Basis of preparation of Financial Statements

a) Method of Accounting

The Company maintains its accounts on accrual basis except insurance claims and claims on Parent Birds, Commercial Birds & Hatching eggs, sale of manure and gunny bags which are accounted on cash basis.

b) Classification under Companies Act,1956

The Company is a Non -Small and Medium sized Company (Non SMC) as defined in the general instructions in respect of accounting standards as notified by the Companies(Accounting Standards) Rules,2006.

B) Valuation of Inventories

i) Inventories of stores, medicines, feeds etc. are valued at cost and is determined using first in first out basis.

ii) Hatching eggs are valued at estimated cost or net realizable value whichever is less.

iii) Pure Line Birds & Grand Parent are valued at initial purchase price plus estimated cost of growing and overheads of birds live on balance sheet date.

iv) Parent Stock of Birds are valued at purchase price plus the estimated cost of growing and overheads.

v) Manure and Gunny Bags accounted for on actual sale basis.

C) Fixed Assets

i) Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment loss, if any, where cost is inclusive of duties, taxes, incidental expenses erection / commissioning expenses and preliminary and pre-operative expenses till date of commencement of production and all necessary expenses to bring the asset to its working condition.

ii) Capital Work in Progress comprises the cost of Fixed Asset that are yet not ready for their intended use at the Balance Sheet date.

D) Depreciation

Depreciation on Fixed Assets has been charged on Straight Line Method on the rates prescribed in Schedule-XIV of the Companies Act, 1956 on prorata basis.

E) Revenue Recognition

i) Revenues from sale of goods are recognized when risks and rewards of ownership of goods are passed on to the customers, which are generally on dispatch of goods and are recorded net of taxes and duties.

ii) Income from services are recognized on prorata basis i.e. as and when service are rendered.

F) Investment

Investment are classified as Current Investments and Long Term Investments based on intention of the management at the time of purchase. Current investments are stated at the lower of the cost and fair value and long term investments are stated at cost.

G) Retirement / Post Retirement Benefits

The Company Provides retirement benefits in the form of gratuity and leave encashment. The Company has worked out the liability towards gratuity based on acturial valuation through LIC and estimated the liability towards Leave Encashment and has provided entire liabilities during the year.

H) Borrowing Cost

Borrowing cost that are directly attributable to the acquisition, Construction or production of the qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily take substantial period of time to get ready for intended use. All other borrowing cost are charged to the statement of profit and loss account.

I) Operating Lease

Lease arrangements where risks and rewards incidental to the ownership of an asset substantially vest with lessor are classified as operating lease. Rental income on assets given and rental expense on assets obtained under operating lease arrangements are recognized in the statement of profit and loss for the year as per the terms and conditions of the respective lease agreement.

J) Earning Per Share

Basic & Diluted earning per equity share are recorded in accordance with AS-20 "Earnings Per Share". Earnings per equity share are calculated by dividing Net profit attributable to the equity shareholder by weighted average number of equity shares outstanding during the year.

K) Taxes on income

1) Tax expenses for a year comprised of current tax and Deferred tax.

2) Tax on income for the current year is determined on the basis of the taxable income and tax Credits computed in accordance with the provision of Income Tax Act,1961, and based in Expected outcome of Assessments/ Appeals.

3) Deferred Tax is recognized on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date. Deferred tax assets are recognized and carried forward to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

4) Minimum alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay income tax higher than the computed under MAT, during the period under which MAT is permitted to be set off under applicable laws.

5) In the year in which MAT credit become eligible to be recognized as an asset in accordance with recommendation contained in the guidance Note issued by the Institute of Chartered Accountants of India (ICAI), the said asset is created by way of a credit to the statement of profit and loss account shown as MAT credit entitlement. The company reviews the same at each Balance sheet date and writes down the carrying Amount of MAT credit entitlement to the extent there is longer convincing evidence to the effect that company will pay Income tax higher than MAT during the specified period.

L) Research and Development

Revenue expenditure on research and development is charged to Statement of Profit and loss for the year.

M) Contingent Liability

Liabilities which are material and whose future outcome can not ascertained with reasonable certainty are treated as contingent and disclosed by way of notes to the accounts.

N) Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

(b) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.


Mar 31, 2013

A) Basis of preparation of Financial Statements

a) Method of Accounting

The Company maintains its accounts on accrual basis except insurance claims and claims on Parent Birds, Commercial Birds & Hatching eggs, sale of manure and gunny bags which are accounted on cash basis.

b) Classification under Companies Act.1956

The Company is a Non -Small and Medium sized Company (Non SMC) as defined in the general instructions in respect of accounting standards as notified by the Companies(Accounting Standards) Rules,2006.

B) Valuation of Inventories

i) Inventories of stores, medicines, feeds etc. are valued at cost and is determined using first in first out basis.

ii) Hatching eggs are valued at estimated cost or net realizable value whichever is less.

iii) Pure Line Birds & Grand Parent are valued at initial purchase price plus estimated cost of growing and overheads of birds live on balance sheet date.

iv) Parent Stock of Birds are valued at purchase price plus the estimated cost of growing and overheads.

v) Manure and Gunny Bags accounted for on actual sale basis.

C) Fixed Assets

i) Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment loss, if any. Where Cost is inclusive of duties, taxes, incidental expenses erection / commissioning expenses and preliminary and pre-operative expenses till date of commencement of production and all necessary expenses to bring the asset to its working condition.

ii) Capital Work in Progress comprises the cost of Fixed Asset that are yet not ready for their intended use at the Balance Sheet date.

D) Depreciation

Depreciation on Fixed Assets has been charged on Straight Line Method on the rates prescribed in Schedule-XIV of the Companies Act, 1956 on prorata basis.

E) Revenue Recognition

i) Revenues from sale of goods are recognized when risks and rewards of ownership of goods are passed on to the customers, which are generally on dispatch of goods and are recorded net of taxes and duties.

ii) Income from services are recognized on prorata basis i.e. as and when service are rendered.

F) Investment

Investment are classified as Current Investments and Long Term Investments based on intention of the management at the time of purchase. Current investments are stated at the lower of the cost and fair value and long term investments are stated at cost.

G) Retirement / Post Retirement Benefits

The company provides retirement benefits in the form of gratuity and leave encashment. The company has worked out the liability towards gratuity based on actuarial valuation through LIC and estimated the liability towards Leave Encashment and has provided entire liabilities during the year.

H) Borrowing Cost

Borrowing cost that are directly attributable to the acquisition, Construction or production of the qualifying assets are capitalized as part of the cost of such assets. A qualifying assets is one that necessarily take substantial period of time to get ready for intended use. All other borrowing cost are charged to the statement of profit and loss account.

I) Operating lease

Lease arrangements where risks and rewards incidental to the ownership of an asset substantially vest with lessor are classified as operating lease. Rental income on assets given and rental expense on assets obtained under operating lease arrangements are recognized in the statement of profit and loss for the year as per the terms and conditions of the respective lease agreement

J) Earning Per Share

Basic & Diluted earning per equity share are recorded in accordance with AS-20 "Earnings Per Share". Earnings per equity share are calculated by dividing Net profit attributable to the equity shareholder by weighted average number of equity shares outstanding during the year.

K) Taxes on income

1) Tax expenses for a year comprises of current tax and Deferred tax

2) Tax on income for the current year is determined on the basis of the taxable income and tax Credits computed in accordance with the provision of Income Tax Act,1961, and based in Expected outcome of Assessments/Appeals.

3) Differed Tax is recognized on timing difference between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date. Deferred tax assets are recognized and carried forward to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

4) Minimum alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay income tax higher than the computed under MAT, during the period under which MAT is permitted to be set off under applicable laws.

5) In the year in which MAT credit become eligible to be recognized as an asset in accordance with recommendation contained in the guidance Note issued by the Chartered Accountants of India (ICAI), the said asset is created by way of a credit to the statement of profit and loss account shown as MAT credit entitlement. The company reviews the same at each Balance sheet date and writes down the carrying Amount of MAT credit entitlement to the extent there is longer convincing evidence to the effect that company will paylncome tax higherthan MATduring the specified period.

L) Research and Development

Revenue expenditure on research and development is charged to Statement of Profit and loss for the year.

M) Contingent Liability

Liabilities which are material and whose future outcome can not ascertained with reasonablecertainty are treated as contingent and disclosed by way of notes to the accounts.


Mar 31, 2012

A) Method of Accounting:

The Company maintains its accounts on accrual basis except insurance claims and claims on Parent & Commercial Birds & Hatching eggs, sale of manure and gunny bags which are accounted on cash basis.

B) Fixed Assets :

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses erection/ commissioning expenses and preliminary and pre-operative expenses till the date of commencement of production.

C) Investment: Investment are stated at cost.

D) Valuation of Inventories :

i) Inventories of stores, medicines, feeds etc. are valued at cost and is determined using first in first out basis.

ii) Hatching eggs are valued at estimated cost or net realizable value whichever is less.

iii) Parent Stock of Birds are valued at purchase price plus the estimated cost of growing and overheads.

iv) Manure and Gunny Bags accounted for on actual sale basis.

E) Depreciation:

Depreciation on Fixed Assets has been charged on Straight Line Method on the rates prescribed in Schedule-XIV of the Companies Act, 1956 on prorate basis.

F) Research and Development Expenditure :

Revenue expenditure is charged to Profit and Loss Account and capital expenditure is added to the cost of Fixed Assets under relevant heads.

G) Retirement / Post Retirement Benefits

The company provides retirement benefits in the form of gratuity and leave encashment. The company has worked out the liability towards Gratuity based on actuarial valuation through LIC and estimated the liability towards Leave Encashment and has provided during the year entire liabilities.

H) Taxation:

(i) The provision for current tax is based on assessable profit of the company computed in accordance with the Income Tax Act 1961.

(ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted as of the Balance Sheet Date.

I) Contingent Liability :

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes to the accounts.

Previous year figures have been regrouped or rearranged wherever necessary and also reclassified to meet the requirements of classification of assets and liabilities and heads of Profit & Loss Account of the Revised Schedule VI.

Last year short term loans and advances adjusted for Rs. 50000/- for matching the revised pot balance of cash and cash equivalents.


Mar 31, 2011

A) Method of Accounting:

The Company maintains its accounts on accrual basis except insurance claims and claims on Parent & Commercial Birds & Hatching eggs, sale of manure and gunny bags which are accounted on cash basis.

B) Fixed Assets :

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses erection / commissioning expenses and preliminary and pre-operative expenses till the date of commencement of production.

C) Investment : Investment are stated at cost.

D) Valuation of Inventories :

I) Inventories of stores, medicines, feeds etc. are valued at cost and is determined using first in first out basis.

ii) Hatching eggs are valued at estimated cost or net realisable value whichever is less.

iii) Parent Stock of Birds are valued at purchase price plus the estimated cost of growing and overheads.

iv) Manure and Gunny Bags accounted for on actual sale basis.

E) Depreciation :

Depreciation on Fixed Assets has been charged on Straight Line Method on the rates prescribed in Schedule- XIV of the Companies Act, 1956 on prorata basis.

F) Research and Development Expenditure :

Revenue expenditure is charged to Profit and Loss Account and capital expenditure is added to the cost of Fixed Assets under relevant heads.

G) Retirement / Post Retirement Benefits

The company provides retirement benefits in the form of gratuity and leave encashment. The company has worked out the liability towards Gratuity based on acturial valuation through the LIC and estimated the liability towards Leave ensashment and has provided during the year entire liabilities.

H) Taxation :

(i) The provision for current tax is based on assessable profit of the company computed in accordance with the Income Tax Act 1961.

(ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted as of the Balance Sheet Date.

I) Contingent Liability :

Liabilities which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes to the accounts.


Mar 31, 2010

A) Method of Accounting:

The Company maintains its accounts on accrual basis except insurance claims and claims on Parent & Commercial Birds & Hatching eggs, sale of manure and gunny bags which are accounted on cash basis.

B) Fixed Assets :

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses erection / commissioning expenses and preliminary and pre-operative expenses till the date of commencement of production.

C) Investment : Investment are stated at cost.

D) Valuation of Inventories :

i) Inventories of stores, medicines, feeds etc. are valued at cost and is determined using first in first out basis.

ii) Hatching eggs are valued at estimated cost or net realisable value whichever is less.

iii) Pure Line Birds & Grand Parent are valued at initial purchase price plus estimated cost of growing and overheads of birds live on balance sheet date.

iv) Parent Stock of Birds are valued at purchase price plus the estimated cost of growing and overheads.

v) Manure and Gunny Bags accounted for on actual sale basis.

E) Depreciation :

Depreciation on Fixed Assets has been charged on Straight Line Method on the rates prescribed in Schedule- XIV of the Companies Act, 1956 on prorata basis.

F) Research and Development Expenditure :

Revenue expenditure is charged to Profit and Loss Account and capital expenditure is added to the cost of Fixed Assets under relevant heads.

G) Retirement / Post Retirement Benefits

The company provides retirement benefits in the form of gratuity and leave encashment. As per Managements view, the liability as on 31.03.2010 is not a substantial liability on account of Employees Turnover, hence not provided.

H) Taxation :

(i) The provision for current tax is based on assessable profit of the company computed in accordance with the Income Tax Act 1961.

(ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted as of the Balance Sheet Date.

I) Contingent Liability :

Liabilities which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes to the accounts.



 
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