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Srinivasa Hatcheries Ltd. Accounting Policies | Accounting Policy of Srinivasa Hatcheries Ltd.
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Accounting Policies of Srinivasa Hatcheries Ltd. Company

Mar 31, 2014

1.1 Basis for preparation of accounts

The financial statements have been prepared under the historical cost convention on accrual basis to comply in all material aspects and in accordance with generally accepted accounting principles in India and the relevant provisions of the Companies Act, 1956 (to the extent applicable) and the provisions of the Companies Act, 2013 (to the extent notified). The accounting policies have been consistently applied by the Company unless otherwise stated.

1.2 Use of estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reporting amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recongnised in the period in which the results are known / materialised.

1.3 Inventories

Inventories are valued as follows:

Poultry for live stock breeding At cost

Work-in-process At lower of cost and net realisable value

Raw and packing material At lower of cost and net realisable value

Trading goods At lower of cost and net realisable value

By products At estimated selling price

Stores and spares At lower of cost and net realisable value

Cost of raw material, packing material, trading goods and stores & spares is determined on first-in-first out basis.

Cost of work-in-process includes costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

1.4 Recognition of revenue and expenditure

a Revenues/incomes and costs/expenditures are generally accounted on accrual, as they are earned or incurred.

b Revenue from sale of goods is recognised when significant risks and rewards of ownership are transferred to the customer.

c Revenue from wind power generation is recognised when the electricity is delivered to the distribution company at a common delivery point and same is measured on the basis of meter reading.

d Income from services rendered is accounted as per contractual terms with the parties concerned.

e Interest income is recognised on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.

f Dividend income is accounted for in the year in which it is declared.

g Carbon credits revenue is recognised on achieving the set milestones or targets as prescribed by the approved agency, provided there is reasonable assessment of certainity of future economic benefits.

1.5 Fixed assets Tangible assets

a Fixed assets have been stated at cost less accumulated depreciation.

b Depreciation has been provided on assets acquired upto 31st March, 1993 on written down value method and on assets acquired thereafter on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

c The cost of leasehold land is amortised over the period of the lease.

Intangible assets

a Intangible assets are stated at cost less accumulated amortisation. These are amortised over a period based on the expected future economic benefits flowing from such assets.

b ERP software is being amortised on a straight line basis over a period of five years.

1.6 Foreign currency transactions

Foreign currency transactions are accounted at the exchange rates prevailing at the date of the transaction. All monetary assets and liabilities relating to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rate and the difference in translation and realised gains and losses on foreign exchange transactions are recognised in the statement of profit and loss.

1.7 Investments

Investments are classified into current and long-term investments. Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of long-term investments.

1.8 Employee benefits

a Short term employee benefits

Undiscounted value of short term employee benefits such as salaries, wages, short term compensated absences, bonus, exgratia and performance incentives are recognised as expense in the period in which the employees render the related service.

b Post employment benefits

Defined contribution plans:

Contribution to defined contribution plans being employee provident fund, employee state insurance, Employee pension schemes, labour welfare fund, employee insurance scheme and super annuation fund are recognised in the statement of profit and loss during the period in which the employees render the related services.

Defined benefit plans:

Liabilities in respect of defined benefit plans being gratuity and leave encashment are determined based on an actuarial valuation using the projected unit credit method. Actuarial gains or losses are recognised immediately in the statement of profit and loss.

1.9 Borrowing costs

Borrowing costs relating to acquisition of fixed assets which takes substantial period of time to get ready for its intended use are included to the extent they relate to the period till such assets are ready to be put to use. All other borrowing costs are charged to revenue. Borrowing costs consist of interest and other costs that the Company incurs in connection with borrowing of funds.

1.10 Segment reporting

The Company has disclosed business segment as primary segment. The Company''s operations mainly comprise breeding of layers and broilers, trading in poultry and poultry related products. These activities constitute one segment i.e., poultry operations. The other business segment reported is wind power generation.

1.11 Leases

The Company''s significant leasing arrangements are in respect of operating leases for premises like operational units, offices, residences etc. These leases which are non-cancellable are generally for 11 months, or for longer periods and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent to statement of profit and loss.

In case of non-cancellable operating leases, leased assets are not recognised on the Company''s balance sheet. Payments made under operating leases are recognised in statement of profit and loss over the term of the lease.

1.12 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity share holders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating the diluted earnings per share, the net profit or loss for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.13 Taxes on income

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company on the estimated total income for the year.

Deferred tax assets and liabilities are recognised on timing differences between taxable income and accounting income, originating in one period and expected to reverse in subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the balance sheet date.

The deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In respect of carry forward losses and unabsorbed depreciation, deferred tax assets are recognised only to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Minimum alternate tax (MAT) under the provisions of the Income Tax Act, 1961 is recognised as current tax in the statement of profit and loss.

The credit available under the Income Tax Act, 1961 in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability.

MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.

1.14 Impairment of assets

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such an indication exists, then the carrying value is reduced to the higher of the net selling price or the value in use. The value in use is the present value of estimated future net income expected from use of the asset.

1.15 Provisions / contingent liabilities

Provisions are recognised, when the Company has a present legal or constructive obligation, as a result of past events, for which it is probable that an out flow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. The disclosure is made for all present or possible obligations that may but probably will not require outflow as contingent liability in the financial statements.


Mar 31, 2013

1.1 Basis for Preparation of Accounts

The f nancial statements have been prepared under the historical cost convention on accrual basis to comply in all material aspects and in accordance with generally accepted accounting principles in India and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company unless otherwise stated.

1.2 Use of Estimates

The preparation of f nancial statements requires estimates and assumptions to be made that af ect the reporting amount of assets and liabilities on the date of the f nancial statements and the reported amount of revenues and expenses during the reporting period. Dif erence between actual results and estimates are recongnised in the period in which the results are known/ materialised.

1.3 Inventories

Inventories are valued as follows:

Poultry for Live Stock Breeding At Cost

Work-in-process At lower of cost and net realisable value

Raw and packing material At lower of cost and net realisable value

Trading goods At lower of cost and net realisable value

By products At lower of cost and net realisable value

Stores and spares At lower of cost and net realisable value

Cost of Raw-material, Packing material, Trading goods and Stores & spares is determined on First-in First-out basis.

Cost of Work-in-process includes costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

1.4 Recognition of Revenue and Expenditure

a Revenues/Incomes and Costs/Expenditures are generally accounted on accrual, as they are earned or incurred.

b Revenue from sale of goods is recognised when signif cant risks and rewards of ownership are transferred to the customer.

c Revenue from wind power generation is recognised when the electricity is delivered to the distribution company at a common delivery point and same is measured on the basis of meter reading.

d Income from services rendered is accounted as per contractual terms with the parties concerned.

e Interest income is recognised on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.

f Dividend Income is accounted for in the year in which it is declared.

g Carbon credits revenue is recognised on achieving the set milestones or targets as prescribed by the approved agency, provided there is reasonable assessment of certainity of future economic benef ts.

1.5 Fixed Assets Tangible Assets

a Fixed assets have been stated at cost less accumulated depreciation.

b Depreciation has been provided on assets acquired upto 31st March, 1993 on Written Down Value method and on assets acquired thereafter on Straight Line method at the rates and in the manner specif ed in Schedule XIV of the Companies Act, 1956.

c The cost of leasehold land is amortised over the period of the lease.

Intangible Assets

a Intangible Assets are stated at cost less accumulated amortisation. These are amortised over a period based on the expected future economic benef ts f owing from such assets.

b ERP Software is being amortised on a straight line basis over a period of f ve years.

1.6 Foreign Exchange Transactions

Foreign currency transactions are accounted at the exchange rates prevailing at the date of the transaction. All monetary assets and liabilities relating to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rate and the dif erence in translation and realised gains and losses on foreign exchange transactions are recognised in the statement of prof t and loss.

1.7 Investments

Investments are classif ed into current and long-term investments. Current Investments are stated at the lower of cost and fair value. Long term investments are stated at cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of long-term investments.

1.8 Employee Benef ts

a Short term employee benef ts:

Undiscounted value of short term employee benef ts such as salaries, wages, short term compensated absences, bonus, exgratia and performance incentives are recognised as expense in the period in which the employees render the related service.

b Post Employment Benef ts

Def ned Contribution plans:

Contribution to def ned contribution plans being Employee Provident Fund, Employee State Insurance, Employee Pension Schemes, Labour Welfare Fund, Employee Insurance Scheme and Super Annuation Fund are recognised in the statement of prof t and loss during the period in which the employees render the related services.

Def ned Benef t Plans:

Liabilities in respect of def ned benef t plans being Gratuity and Leave encashment are determined based on an actuarial valuation using the projected unit credit method. Actuarial gains or losses are recognised immediately in the statement of prof t and loss.

1.9 Borrowing Costs

Borrowing costs relating to acquisition of f xed assets which takes substantial period of time to get ready for its intended use are included to the extent they relate to the period till such assets are ready to be put to use . All other borrowing costs are charged to revenue. Borrowing costs consist of interest and other costs that the company incurs in connection with borrowing of funds.

1.10 Segment Reporting

The Company has disclosed business segment as primary segment. The Company''s operations mainly comprise breeding of layers and broilers, trading in poultry and poultry related products. These activities constitute one segment i.e., Poultry Operations. The other business segment reported is Wind Power Generation.

1.11 Leases

The Company''s signif cant leasing arrangements are in respect of operating leases for premises like operational units, of ces, residences etc. These leases which are non-cancellable are generally for 11 months, or for longer periods and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent to statement of prof t and loss.

In case of non-cancellable operating leases, leased assets are not recognised on the Company''s balance sheet. Payments made under operating leases are recognised in statement of prof t and loss over the term of the lease.

1.12 Earnings Per Share

Basic Earnings Per Share is calculated by dividing the net prof t or loss for the period attributable to equity share holders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating the diluted earnings per share, the net prof t or loss for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the ef ects of all dilutive potential equity shares.

1.13 Taxes on Income

The Current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company on the estimated total income for the year.

Deferred tax assets and liabilities are recognised on timing dif erences between taxable income and accounting income, originating in one period and expected to reverse in subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the Balance Sheet date.

The Deferred tax assets are recognised only to the extent that there is reasonable certainty that suf cient future taxable income will be available against which such deferred tax assets can be realised. In respect of carry forward losses and unabsorbed depreciation, deferred tax assets are recognised only to the extent there is virtual certainty that suf cient future taxable income will be available against which such deferred tax assets can be realised.

Minimum Alternative Tax (MAT) under the provisions of the Income Tax Act, 1961 is recognised as current tax in the Statement of Prof t and Loss.

The credit available under the Act in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which the MAT credit can be carried forward for set-of against the normal tax liability.

MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.

1.14 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such an indication exists, then the carrying value is reduced to the higher of the net selling price or the value in use. The value in use is the present value of estimated future net income expected from use of the asset.

1.15 Provisions / Contingent Liabilities

Provisions are recognised, when the Company has a present legal or constructive obligation, as a result of past events, for which it is probable that an out f ow of economic benef ts will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. The disclosure is made for all present or possible obligations that may but probably will not require outf ow as contingent liability in the f nancial statements.


Mar 31, 2012

1.1 Basis for Preparation of Accounts

The financial statements have been prepared under the historical cost convention on accrual basis to comply in all material aspects and in accordance with generally accepted accounting principles in India and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company unless otherwise stated.

1.2 Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reporting amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

1.3 Inventories

Inventories are valued as follows:

Poultry for Live Stock Breeding At Cost

Work-in-process At lower of cost and net realisable value

Raw and packing material At lower of cost and net realisable value

Trading goods At lower of cost and net realisable value

By products At lower of cost and net realisable value

Stores and spares At lower of cost and net realisable value

Cost of Raw-material, Packing material, Trading goods and Stores & spares is determined on First-in First-out basis.

Cost of Work-in-process includes costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

1.4 Recognition of Revenue and Expenditure

a Revenues/Incomes and Costs/Expenditure are generally accounted on accrual, as they are earned or incurred.

b Revenue from sale of goods is recognised when significant risks and rewards of ownership are transferred to the customer.

c Revenue from wind power generation is recognised when the electricity is delivered to the distribution company at a common delivery point and same is measured on the basis of meter reading.

d Income from services rendered is accounted as per contractual terms with the parties concerned.

e Interest income is recognised on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.

f Dividend Income is accounted for in the year in which it is declared.

1.5 Fixed Assets Tangible Assets

a Fixed assets have been stated at cost less accumulated depreciation.

b Depreciation has been provided on assets acquired upto 31st March, 1993 on Written Down Value method and on assets acquired thereafter on Straight Line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. c The cost of leasehold land is amortised over the period of the lease.

Intangible Assets

a Intangible Assets are stated at cost less accumulated amortisation. These are amortised over a period based on the expected future economic benefits flowing from such assets.

b ERP Software is being amortised on a straight line basis over a period of five years.

1.6 Foreign Exchange Transactions

Foreign currency transactions are accounted at the exchange rates prevailing at the date of the transaction. All monetary assets and liabilities relating to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rate and the difference in translation and realised gains and losses on foreign exchange transactions are recognised in the statement of profit and loss.

1.7 Investments

Investments are classified into current and long-term investments. Current Investments are stated at the lower of cost and fair value. Long term investments are stated at cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of long-term investments.

1.8 Employee Benefits

a Short term employee benefits:

Undiscounted value of short term employee benefits such as salaries, wages, short term compensated absences, bonus, exgratia and performance incentives are recognised as expense in the period in which the employees render the related service.

b Post Employment Benefits

Defined Contribution plans:

Contribution to defined contribution plans being Employee Provident Fund, Employee State Insurance, Employee Pension Schemes, Labour Welfare Fund, Employee Insurance Scheme and Super Annuation Fund are recognised in the statement of profit and loss during the period in which the employees render the related services.

Defined Benefit Plans:

Liabilities in respect of defined benefit plans being Gratuity and Leave encashment are determined based on an actuarial valuation using the projected unit credit method. Actuarial gains or losses are recognised immediately in the statement of profit and loss.

1.9 Borrowing Costs

Borrowing costs relating to acquisition of fixed assets which takes substantial period of time to get ready for its intended use are included to the extent they relate to the period till such assets are ready to be put to use . All other borrowing costs are charged to revenue. Borrowing costs consist of interest and other costs that the company incurs in connection with borrowing of funds.

1.10 Segment Reporting

The Company has disclosed business segment as primary segment. The Company's operations mainly comprise breeding of layers and broilers, trading in poultry and poultry related products. These activities constitute one segment i.e., Poultry Operations. The other business segment reported is Wind Power Generation.

1.11 Leases

The Company's significant leasing arrangements are in respect of operating leases for premises like operational units, offices, residences etc. These leases which are cancellable are generally for 11 months, or for longer periods and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent to statement of profit and loss.

1.12 Earnings Per Share

Basic Earnings Per Share is calculated by dividing the net profit or loss for the period attributable to equity share holders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating the diluted earnings per share, the net profit or loss for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.13 Taxes on Income

The Current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company on the estimated total income for the year.

Deferred tax assets and liabilities are recognised on timing differences between taxable income and accounting income, originating in one period and expected to reverse in subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the Balance Sheet date.

The Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In respect of carry forward losses and unabsorbed depreciation, deferred tax assets are recognised only to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

1.14 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such an indication exists, then the carrying value is reduced to the higher of the net selling price or the value in use. The value in use is the present value of estimated future net income expected from use of the asset.

1.15 Provisions / Contingent Liabilities

Provisions are recognised, when the Company has a present legal or constructive obligation, as a result of past events, for which it is probable that an out flow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. The disclosure is made for all present or possible obligations that may but probably will not require outflow as contingent liability in the financial statements.


Mar 31, 2011

I Basis for Preparation of Accounts

The financial statements have been prepared under the historical cost convention on accrual basis to comply in all material aspects and inaccordance with generally accepted accounting principles in India and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company unless otherwise stated.

ii Recognition of Revenue and Expenditure

a Revenues/Incomes and Costs/Expenditures are generally accounted on accrual, as they are earned or incurred.

b Revenue from sale of goods is recognised when significant risks and rewards of ownership are transferred to the customer.

c Income from services rendered is accounted as per contractual terms with the parties concerned.

d Interest income is recognised on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.

e Dividend Income is accounted for in the year in which it is declared.

iii Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reporting amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recongnised in the period in which the results are known/ materialised.

iv Fixed Assets

Tangible Assets

a Fixed assets have been stated at cost less accumulated depreciation.

b Depreciation has been provided on assets acquired upto 31st March, 1993 on Written Down Value method and on assets acquired thereafter on Straight Line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

Intangible Assets

a Intangible Assets are stated at cost less accumulated amortisation. These are amortised over a period based on the expected future economic benefits flowing from such assets.

b ERP Software is being amortised on a straight line basis over a period of five years.

v Borrowing Costs

Borrowing costs relating to acquisition of fixed assets which takes substantial period of the time to get ready for its intended use are included to the extent they relate to the period till such assets are ready to be put to use, Ail other borrowing costs are charged to revenue. Borrowing costs consist of interest and other costs that the company incurs in connection with borrowing of funds.

vi Investments

Investments are classified into current and long-term investments. Current Investments are stated at the lower of cost and fair value. Long term investments are stated at cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of long-term investments.

vii Inventories

Inventories are valued as follows:

Poultry for Live Stock Breeding At Cost

Work-in-process At lower of cost and net realisable value

Raw and packing material At lower of cost and net realisable value

Trading goods At lower of cost and net realisable value

By products At lower of cost and net realisable value

Stores and spares At lower of cost and net realisable value

Cost of Raw-material, Packing material, Trading goods and Stores & spares is determined on First- in First-out basis.

Cost of Work-in-process includes costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

viii Employee Benefits

a Short term employee benefits:

Undiscounted value of short term employee benefits such as salaries, wages, short term compensated absences, bonus, exgratia and performance incentives are recognised as expense in the period in which the employees render the related service.

b Post Employment Benefits

Defined Contribution plans:

Contribution to defined contribution plans being Employee Provident Fund, Employee State Insurance, Employee Pension Schemes, Labour Welfare Fund, Employee Insurance Scheme and Super Annuation Fund are recognised in the profit and loss account during the period in which the employees render the related services.

Defined Benefit Plans:

Liabilities in respect of defined benefit plans being Gratuity and Leave encashment are determined based on an actuarial valuation using the projected unit credit method. Actuarial gains or losses are recognised immediately in the Profit and Loss account.

ix Foreign Exchange Transactions

Foreign currency transactions are accounted at the exchange rates prevailing at the date of the transaction. All monetary assets and liabilities relating to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rate and the difference in translation and realised gains and losses on foreign exchange transactions are recognised in the Profit & Loss Account.

x Taxes on Income

The Current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company on the estimated total income for the year.

Deferred tax assets and liabilities are recognised on timing differences between taxable income and accounting income, originating in one period and expected to reverse in subsequent periods,

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the Balance Sheet date.

xi Segment Reporting

The Companys operations mainly comprises breeding of layers and broilers and trading in poultry and poultry related products. These activities constitute the primary segment i.e., Poultry Operations.

xii Leases

The Companys significant leasing arrangements are in respect of operating leases for premises like operational units, offices, residences etc. These leases which are not non-cancelable are generally for 11 months, or for longer periods and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent to Profit and Loss Account.

xiii Earnings Per Share

Basic Earnings Per Share is calculated by dividing the net profit or loss for the period attributable to equity share holders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating the diluted earnings per share, the net profit or loss for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

xiv Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such an indication exists, then the carrying value is reduced to the higher of the net selling price or the value in use. The value in use is the present value of estimated future net income expected from use of the asset.

xv Provisions / Contingent Liabilities

Provisions are recognised, when the Company has a present legal or constructive obligation, as a result of past events, for which it is probable that an out flow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. The disclosure is made for all present or possible obligations that may but probably will not require outflow as contingent liability in the financial statements.


Mar 31, 2010

I Basis for Preparation of Accounts

The financial statements have been preparea unaer the historical cost convention on accrual basis to comply in all material aspects and inaccordance with generally accepted accounting principles in India and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company unless otherwise stated.

ii Recognition of Revenue and Expenditure

a Revenues/Incomes and Costs/Expenditures are generally accounted on accrual, as they are earned or incurred.

b Revenue from sale of goods is recognised when significant risks and rewards of ownership are transferred to the customer.

c Income from services rendered is accounted as per contractual terms with the parties concerned.

d Interest income is recognised on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.

e Dividend Income is accounted for in the year in which it is declared.

iii Use of Estimates

The preparation of financial statements reauires estimates ana assumptions to be made that affect the reporting amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recongnised in the period in which the results are known/ materialised.

iv Fixed Assets

Tangible Assets

a Fixed assets have been stated at cost less accumulated depreciation.

b Depreciation has been provided on assets acguired upto 31st March, 1993 on Written Down Value method and on assets acguired thereafter on Straight Line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

Intangible Assets

a Intangible Assets are stated at cost less accumulated amortisation. These are amortised over a period based on the expected future economic benefits flowing from such assets.

b ERP Software is being amortised on a straight line basis over a period of five years. v Investments

Investments are classified into current and long-term investments. Current Investments are stated at the lower of cost and fair value. Long term investments are stated at cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of long-term investments.

vi Inventories

Inventories are valued as follows:

Poultry for Live Stock Breeding At Cost

Work-in-process At lower of cost and net realisable value

Raw and packing material At lower of cost and net realisable value

Trading goods At lower of cost and net realisable value

By products At lower of cost and net realisable value

Stores and spares At lower of cost and net realisable value

Cost of Raw-material, Packing material, Trading goods and Stores & spares is determined on First-in First-out basis.

Cost of Work-in-process includes costs of conversion and other costs incurred in bringing the inventories to their present location and condition,

vii Employee Benefits

a Short term employee benefits:

Undiscounted value of short term employee benefits such as salaries, wages, short term compensated absences, bonus, exgratia and performance incentives are recognised as expense in the period in which the employees render the related service.

b Post Employment Benefits

Defined Contribution plans:

Contribution to defined contribution plans being Employee Provident Fund, Employee State Insurance, Employee Pension Schemes and Labour Welfare FunO are recognised in the profit and loss account during the period in which the employees render the related services.

Defined Benefit Plans:

Liabilities in respect of defined benefit plans being Gratuity and Leave encashment are determined based on an actuarial valuation using the projected unit credit method. Actuarial gains or losses are recognised immediately in the Profit and Loss account.

viii Foreign Exchange Transactions

Foreign currency transactions are accounted at the exchange rates prevailing at the date of the transaction. All monetary assets and liabilities relating to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rate and the difference in translation and realised gains and losses on foreign exchange ransactions are recognised in the Profit & Loss Account.

ix Taxes on Income

The Current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company on the estimated total income for the year.

Deferred tax assets and liabilities are recognised on timing differences between taxable income and accounting income, originating in one period and expected to reverse in subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as on the Balance Sheet date.

x Segment Reporting

The Companys operations mainly comprises breeding of layers and broilers and trading in poultry and poultry related products. These activities constitute the primary segment i.e., Poultry Operations.

xi Leases

The Companys significant leasing arrangements are in respect of operating leases for premises like operational units, offices, residences etc. These leases which are not non-cancellable are generally for more than 11 months, or for longer periods and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent to Profit and Loss Account.

xii Earnings Per Share

Basic Earnings Per Share is calculated by dividing the net profit or loss for the period attributable to equity share holders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating the diluted earnings per share, the net profit or loss for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

xiii Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such an indication exists, then the carrying value is reduced to the higher of the net selling price or the value in use. The value in use is the present value of estimated future net income expected from use of the asset.

xiv Provisions / Contingent Liabilities

Provisions are recognised, when the Company has a present legal or constructive obligation, as a result of past events, for which it is probable that an out flow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. The disclosure is made for all present or possible obligations that may but probably will not require outflow as contingent liability in the finanical statements.

 
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