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Accounting Policies of Sukhjit Starch & Chemicals Ltd. Company

Mar 31, 2014

1. METHOD OF ACCOUNTING

The company maintains its financial statements on an accrual basis and in accordance with the Historical Cost Convention, Generally Accepted Accounting Principles and applicable Accounting Standards as well as the relevant provisions of The Companies Act, 1956. However, certain escalations/claims which are not ascertainable or unacknowledged, are accounted for on their being acknowledged/materialized.

2. FIXED ASSETS

The fixed assets are accounted for at their original cost of acquisition and subsequent improvements thereto including duties, taxes, freight and incidental charges relating to their acquisition and installation. Interest on borrowings for fixed assets acquisition and revenue expenditure incurred for the period prior to the commercial production are considered as a part of the cost of assets.

3. LEASES

The operating lease where the Company is a Lessee and substantially all the risks and rewards of ownership are retained by the Lessor, rentals are charged to the Profit & Loss Account on an accrual basis.

4. DEPRECIATION

Depreciation on addition to Plant & Machinery has been provided on a straight line method and on other fixed assets on the written down value at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on assets added during the year has been provided on a pro-rata basis with reference to the month of addition/installation.

5. IMPAIRMENT

Impairment loss, if any, is provided to the extent carrying cost of an asset exceeds its realizable value.

6. INVESTMENTS

Investments are valued at cost. Profit and loss are recognised as income or expenditure on their transfer. Long Term Investments are stated at cost less permanent diminution, if any, in value.

7. INVENTORIES

Raw materials, stores and spares, packing material, components, stock in process, finished goods and goods held for resale are valued at lower of cost and net realisable value. By Products are valued at their net realisable value. The costs are, in general, determined on a weighted average basis. Due allowance is made for obsolete items, if any.

8. EMPLOYEE BENEFITS

(i) Short term employee benefits are charged to the profit and loss account of the year in which the employee renders service. These benefits include Annual leave encashment, Ex-gratia etc.

(ii) Defined contribution plans comprises contribution to Employees Provident Fund, Employee Pension Scheme and Employee State Insurance which are deposited with the Government. These contributions are recognized as expenses during the periods employees perform services.

(iii) Defined benefit plans include Gratuity which is determined on the basis of acturial valuation at the end of the year and contributions are deposited with SBI Life Insurance Company Ltd. under a separate trust, and charged to the Profit and Loss Account of the relevant year. Contribution to Superannuation Plan for certain category of employees (to provide an agreed benefit) are deposited with the Life Insurance Corporation of India and charged to the Profit and Loss Account on the same basis.

9. REVENUE RECOGNITION

(i) The revenue is recognized when it can be reliably measured and reasonably expected to realize. Sales are inclusive of Excise Duty wherever applicable.

(ii) Dividend income is accounted for when the right to receive the payment is established.

(iii) Interest income is recognized on time proportion basis taking into consideration the outstanding amount and the applicable rate of interest.

10. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions relating to the sale of goods are translated at the rates prevailing at the time of settlement of the transactions. The transactions remaining unsettled as on the balance sheet date are translated at the contracted rates (where applicable) or at the exchange rates prevailing at the end of the accounting year.

Any income or expenditure on account of exchange difference (on transaction) is recognized in the Profit and Loss Account except Long term liabilities relating to the acquisition of Fixed Assets where they are adjusted to the cost of asset and depreciated over the balance life of the asset.

11. RESEARCH AND DEVELOPMENT EXPENDITURE

Revenue expenditure on research and development are charged off as and when incurred. However, the capital expenditure is considered as part of the Fixed Assets and depreciated on the same basis as other fixed assets.

12. TAXATION

(i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of 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 or substantially enacted as of the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.

13. GOVERNMENT GRANTS/SUBSIDIES

Grants in the nature of contribution towards capital cost of setting up projects are treated as capital reserve. However, grants or subsidies relating to an expense item is recognized as income over the periods necessary to match them to the costs, which it intended to compensate.

14. BORROWING COSTS

Borrowing costs directly attributable to the acquisition of qualifying fixed assets are capitalized as a part of the cost of assets till the date of commencement of commercial use of the fixed asset. All other borrowing costs are charged to the Profit and Loss Account of the period in which they are incurred.

15. PROVISIONS/CONTINGENCIES

Provision is recognized when there is a present obligation as a result of a past event and it is probable that the outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Contingent liabilities are not recognized and are disclosed by way of Notes on financial statements.


Mar 31, 2013

1. METHOD OF ACCOUNTING

The company maintains its financial statements on an accrual basis and in accordance with the historical cost convention, generally accepted Accounting Principles and applicable Accounting Standards as well as the relevant provisions of The Companies Act, 1956. However, certain escalations/claims which are not ascertainable or unacknowledged, are accounted for on their being acknowledged/materialized.

2. FIXED ASSETS

The fixed assets are accounted for at their original cost of acquisition and subsequent improvements thereto including duties, taxes, freight and incidental charges relating to their acquisition and installation. Interest on borrowings for fixed assets acquisition and revenue expenditure incurred for the period prior to commercial production are considered as a part of the cost of assets.

3. LEASES

The operating lease where the Company is Lessee and substantially all the risks and rewards of ownership are retained by the Lessor, the lease is classified as operating lease and rentals are charged to the Profit & Loss Account on an accrual basis.

4. DEPRECIATION

Depreciation on addition to Plant & Machinery has been provided on a straight line method and on other fixed assets on written down value at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on assets added during the year has been provided on a pro-rata basis with reference to the month of addition/installation.

5. IMPAIRMENT

Impairment loss, if any, is provided to the extent carrying cost of an asset exceeds its realizable value.

6. INVESTMENTS

Investments are valued at cost. Profit and loss are recognised as income or expenditure on their transfer. Long Term Investments are stated at cost less permanent diminution, if any, in value.

7. INVENTORIES

Raw materials, stores and spares, packing material, components, stock in process, finished goods and goods held for resale are valued at lower of cost and net realisable value. Bye Products are valued at their net realisable value. The costs are, in general, determined on a weighted average basis. Due allowance is made for obsolete items, if any.

8. EMPLOYEE BENEFITS

(i) Short term employee benefits are charged to the profit and loss account of the year in which the employee renders service. These benefits include Annual leave encashment, Ex-gratia etc.

(ii) Defined contribution plans comprises contribution to Employees Provident Fund, Employee Pension Scheme and Employee State Insurance which are deposited with the Government. These contributions are recognized as expenses during the periods employees perform services.

(iii) Defined benefit plans include Gratuity which is determined on the basis of acturial valuation at the end of the year and contributions are deposited with SBI Life Insurance Company Ltd. under separate trust, and charged to the Profit and Loss Account of the relevant year. Contribution to Superannuation Plan for certain category of employees (to provide an agreed benefit) are deposited with the Life Insurance Corporation of India and charged to the Profit and Loss Account on the same basis.

9. REVENUE RECOGNITION

(i) The revenue is recognized when it can be reliably measured and reasonably expected to realize. Sales are inclusive of Excise Duty wherever applicable.

(ii) Dividend income is accounted for when the right to receive the payment is established.

(iii) Interest income is recognized on time proportion basis taking into consideration the outstanding amount and the applicable rate of interest.

10. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions relating to sale of goods are translated at the rates prevailing at the time of settlement of the transactions. The transactions remaining unsettled as on the balance sheet date are translated at the contracted rates (where applicable) or at the exchange rates prevailing at the end of the accounting year.

Any income or expenditure on account of exchange difference (on transaction) is recognized in the Profit and Loss Account except Long term liabilities relating to the acquisition of Fixed Assets where they are adjusted to the cost of asset and depreciated over the balance life of the asset.

11. RESEARCH AND DEVELOPMENT EXPENDITURE

Revenue expenditure on research and development are charged off as and when incurred. However, the capital expenditure is considered as part of the Fixed Assets and depreciated on the same basis as other fixed assets.

12. TAXATION

(i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of 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 or substantially enacted as of the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.

13. GOVERNMENT GRANTS/SUBSIDIES

Grants in the nature of contribution towards capital cost of setting up projects are treated as capital reserve. However, grants or subsidies relating to an expense item is recognized as income over the periods necessary to match them to the costs, which it intended to compensate.

14. BORROWING COSTS

Borrowing costs directly attributable to the acquisition of qualifying assets are capitalized as a part of the cost of assets till the date of commencement of commercial use of the asset. All other borrowing costs are charged to the Profit and Loss Account of the period in which they are incurred.

15. PROVISIONS/CONTINGENCIES

Provision is recognized when there is a present obligation as a result of a past event and it is probable that the outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Contingent liabilities are not recognized and are disclosed by way of Notes on financial statements.


Mar 31, 2012

1. METHOD OF ACCOUNTING

The company maintains its financial statements on an accrual basis and in accordance with the historical cost convention, generally accepted Accounting Principles and applicable Accounting Standards as well as the relevant provisions of The Companies Act, 1956. However, certain escalations/claims which are not ascertainable or unacknowledged, are accounted for on their being acknowledged/materialized.

2. FIXED ASSETS

The fixed assets are accounted for at their original cost of acquisition and subsequent improvements thereto including duties, taxes, freight and incidental charges relating to their acquisition and installation. Interest on borrowings for fixed assets acquisition and revenue expenditure incurred for the period prior to commercial production are considered as a part of the cost of assets.

3. LEASES

The operating lease where the Company is Lessee and substantially all the risks and rewards of ownership are retained by the Lessor, the lease is classified as operating lease and rentals are charged to the Profit & Loss Account on an accrual basis.

4. DEPRECIATION

Depreciation on addition to Plant & Machinery has been provided on a straight line method and on other fixed assets on written down value at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on assets added during the year has been provided on pro-rata basis with reference to the month of addition/installation.

5. IMPAIRMENT

Impairment loss, if any, is provided to the extent carrying cost of an asset exceeds its realizable value.

6. INVESTMENTS

Investments are valued at cost. Profit and loss are recognised as income or expenditure on their transfer. Long Term Investments are stated at cost less permanent diminution, if any, in value.

7. INVENTORIES

Raw materials, stores and spares, packing material, components, stock in process, finished goods and goods held for resale are valued at lower of cost and net realisable value. Bye Products are valued at net realisable value. The costs are, in general, determined on weighted average basis. Due allowance is made for obsolete items, if any.

8. EMPLOYEE BENEFITS

(i) Short term employee benefits are charged to the profit and loss account of the year in which the employee renders service. These benefits include Annual leave encashment, Ex-gratia etc.

(ii) Defined contribution plants comprises contribution to Employees Provident Fund, Employee Pension Scheme and Employee State Insurance with the Government. These contributions are recognized as expenses during the periods employees perform services. Contribution to Superannuation Plan for certain category of employees (to provide an agreed benefit) are deposited with the Life Insurance Corporation of India and charged to the Profit and Loss Account on the same basis.

(iii) Defined benefit plans include Gratuity which is determined on the basis of acturial valuation at the end of the year and contributions are deposited with SBI Life Insurance Company Ltd. under separate trust, and charged to the Profit and Loss Account of the relevant year.

9. REVENUE RECOGNITION

(i) The revenue is recognized when it can be reliably measured and reasonably expected to realize. Sales are inclusive of Excise Duty wherever applicable.

(ii) Dividend income is accounted for when the right to receive the payment is established.

(iii) Interest income is recognized on time proportion basis taking into consideration the outstanding amount and the applicable rate of interest.

10. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions relating to sale of goods are translated at the rates prevailing at the time of settlement of transactions. The transactions remaining unsettled as on the balance sheet date are translated at the contracted rates (where applicable) or at the exchange rates prevailing at the end of the accounting year.

Any income or expenditure on account of exchange difference (on transaction) is recognized in the Profit and Loss Account except Long term liabilities relating to the acquisition of Fixed Assets where they are adjusted to the cost of asset and depreciated over the balance life of the asset.

11. RESEARCH AND DEVELOPMENT EXPENDITURE

Revenue expenditure on research and development are charged off as and when incurred. However, the capital expenditure is considered as part of the Fixed Assets and depreciated on the same basis as other fixed assets.

12. TAXATION

(i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of 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 or substantially enacted as of the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.

13. GOVERNMENT GRANTS/SUBSIDIES

Grants in the nature of contribution towards capital cost of setting up projects are treated as capital reserve. However, grants or subsidies relating to an expense item is recognized as income over the periods necessary to match them to the costs, which it intended to compensate.

14. BORROWING COSTS

Borrowing costs directly attributable to the acquisition of qualifying assets are capitalized as a part of the cost of assets till the date of commencement of commercial use of the asset. All other borrowing costs are charged to the Profit and Loss Account of the period in which they are incurred.

15. PROVISIONS/CONTINGENCIES

Provision is recognized when there is a present obligation as a result of a past event and it is probable that the outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Contingent liabilities are not recognized and are disclosed by way of Notes on financial statements.


Mar 31, 2011

1. METHOD OF ACCOUNTING

The company maintains its financial statements on an accrual basis and in accordance with the historical cost convention, generally accepted accounting practices and applicable Accounting Standards as well as the relevant provisions of The Companies Act, 1956. However, certain escalations/claims which are not ascertainable or unacknowledged, are accounted for on their being acknowledged.

2. FIXED ASSETS

The fixed assets are accounted for at their original cost included duties, taxes, freight and incidental charges relating to their acquisition and installation. Interest on borrowings for fixed assets acquisition and revenue expenditure incurred for the period prior to commercial production are considered as a part of the cost of assets.

3. DEPRECIATION

Depreciation on addition to Plant & Machinery has been provided on a straight line method and on other fixed assets on written down value at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on assets added during the year has been provided on pro-rata basis with reference to the month of addition/installation.

4. INVESTMENTS

Investments are valued at cost. Profit and loss are recognised as income or expenditure on their transfer. Long Term Investments are stated at cost less permanent diminution, if any, in value.

5. INVENTORY

Raw materials, stores and spares, packing material, components, stock in process, finished goods, bye products and goods held for resale are valued at lower of cost and net realisable value.

6. EMPLOYMENT BENEFITS

The contribution to Provident and Superannuation Funds are accounted on actual liability basis. Gratuity provisions/contributions are made on actuarial valuation basis.

7. REVENUE RECOGNITION

(a) Sales are inclusive of Excise Duty wherever applicable.

(b) Income on investment from dividend/interest are recognised on the basis of declaration or accrual thereof.

8. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions relating to sale of goods are translated at the rates prevailing at the time of settlement of transactions. The transactions remaining unsettled as on the balance sheet date are translated at the contracted rates (where applicable) or at the exchange rates prevailing at the end of the accounting year.

9. RESEARCH & DEVELOPMENT EXPENSES

Expenses on research & development are charged off as and when incurred.

10. TAXATION

(i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of 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 or substantially enacted as of the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.

11. GOVERNMENT GRANTS

Grants in the nature of contribution towards capital cost of setting up projects are treated as capital reserve. However, grants or subsidies relating to an expense item is recognized as income over the periods necessary to match them to the costs, which it is intended to compensate.

12. BORROWING COSTS

Borrowing costs directly attributable to the acquisition of qualifying assets are capitalized as a part of the cost of assets till the date of commencement of commercial use of the asset. All other borrowing costs are charged to the Profit & Loss Account.


Mar 31, 2010

1. METHOD OF ACCOUNTING

The company maintains its financial statements on an accrual basis and in accordance with the historical cost convention, generally accepted accounting practices and applicable Accounting Standards as well as the relevant provisions of The Companies Act, 1956. However, certain escalations/claims which are not ascertainable or unacknowledged, are accounted for on their being acknowledged.

2. FIXED ASSETS

The fixed assets are accounted for at their original cost included duties, taxes, freight and incidental charges relating to their acquisition and installation, Interest on borrowings for fixed assets acquisition and revenue expenditure incurred for the period prior to commercial production are considered as a part of the cost of assets.

3. DEPRECIATION

Depreciation on addition to Plant & Machinery has been provided on a straight line method and on other fixed assets on written down value at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on assets added during the year has been provided on pro-rata basis with reference to the month of addition/installation.

4. INVESTMENTS

Investments are valued at cost. Profit and loss are recognised as income or expenditure on their transfer. Long Term Investments are stated at cost less other than temporary diminution, if any, in value.

5. INVENTORY

Raw materials, stores and spares, packing material, components, stock in process, finished goods, bye products and goods held for resale are valued at lower of cost and net realisable value.

6. EMPLOYMENT BENEFITS

The contribution to Provident and Superannuation Funds are accounted on actual liability basis. Gratuity provisions/contributions are made on actuarial valuation basis.

7. REVENUE RECOGNITION

(a) Sales are inclusive of Excise Duty wherever applicable.

(b) Income on investment from dividend/interest are recognised on the basis of declaration or accrual thereof.

8. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions relating to sale of goods are translated at the rates prevailing at the time of settlement of transactions. The transactions remaining unsettled as on the balance sheet date are translated at the contracted rates (where applicable) or at the exchange rates prevailing at the end of the accounting year.

9. RESEARCH & DEVELOPMENT EXPENSES

Expenses on research & development are charged off as and when incurred.

10. TAXATION

(i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of 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 or substantially enacted as of the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.

11. GOVERNMENT GRANTS

Grants in the nature of contribution towards capital cost of setting up projects are treated as capital reserve. However, grants or subsidies relating to an expense item is recognized as income over the periods necessary to match them to the costs, which it is intended to compensate.

12. BORROWING COSTS

Borrowing costs directly attributable to the acquisition of qualifying assets are capitalized as a part of the cost of assets till the date of commencement of commercial use of the asset. All other borrowing costs are charged to the Profit & Loss Account.

 
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