Accounting Policies of Suvidha Infraestate Corporation Ltd. Company

Mar 31, 2014

1.1 The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

1.2 The Company adopts the accrual concept in the preparation of the accounts.

1.3 RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

1.4 FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

1.5 INVENTORIES

(a) In case of Inventory of raw materials, the raw materials received on the site are treated as consumed in the books of the company.

(b) Closing Stock of WIP has been valued at cost.

1.6 TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

1.7 DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originates in one period and is capable of reversal in one or more subsequent periods.

1.8 IMPAIRMENT OF FIXED ASSETS:-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.9 RETIREMENT & OTHER EMPLOYEE BENEFITS:-

There are employees in the company and the following Accounting Policies are followed by the company.

A. When the company will exceed 10 employees, Gratuity shall be charged to revenue upon the estimates made by the company.

B. Leave encashment is not charged to revenue as the same is not allowed by the company. The unutilised leaves of the employees are allowed to be carried forward to the next year without any lapse. The employees are encouraged to fully utilise their leaves before they retire. At the time of retirement of any employee if there is any balance of unutilised leaves, then the said balance lapses. Hence, the company does not make any provision for leave encashment.

C. When the company will exceed 10 employees, The Company shall charge its contribution to provident fund to Profit & Loss Account of the year.

1.10 SALES

The company is recognizing the sales revenue based on guidance note on recognition of revenue by Real Estate Developers issued by ICAI and is based on percentage completion method.

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Mar 31, 2013

1.1 The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

1.2 The Company adopts the accrual concept in the preparation of the accounts.

1.3 RECOGNITION OF INCOME & EXPENDITURE All Income & Expenditure are accounted for on accrual basis.

1.4 FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

1.5 INVENTORIES

(a) In case of Inventory of raw materials, the raw materials received on the site are treated as consumed in the books of the company.

(b) Closing Stock of WIP has been valued at cost.

1.6 TAXES ON INCOME: Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

1.7 DEFERRED TAX: Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originates in one period and is capable of reversal in one or more subsequent periods.

1.8 IMPAIRMENT OF FIXED ASSETS:- Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.9 RETIREMENT & OTHER EMPLOYEE BENEFITS:- There are employees in the company and the following Accounting Policies are followed by the company.

A. When the company will exceed 10 employees, Gratuity shall be charged to revenue upon the estimates made by the company.

B. Leave encashment is not charged to revenue as the same is not allowed by the company. The unutilised leaves of the employees are allowed to be carried forward to the next year without any lapse. The employees are encouraged to fully utilise their leaves before they retire. At the time of retirement of any employee if there is any balance of unutilised leaves, then the said balance lapses. Hence, the company does not make any provision for leave encashment.

C. When the company will exceed 10 employees, The Company shall charge its contribution to provident fund to Profit & Loss Account of the year.

1.10 SALES

The company is recognizing the sales revenue based on guidance note on recognition of revenue by Real Estate Developers issued by ICAI and is based on percentage completion method.

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Mar 31, 2012

1.1 The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

1.2 The Company adopts the accrual concept in the preparation of the accounts.

1.3 RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

1.4 FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 onthestraightlinemethodinrespectofallassets.

1.5 INVENTORIES

Raw Material is valued at cost.

Closing Stock of WIP has been valued at cost.

1.6 TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

1.7 DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.8 IMPAIRMENTOFFIXEDASSETS:-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.9 RETIREMENT & OTHER EMPLOYEE BENEFITS:-

There are no employees in the company and the following Accounting Policies shall be followed by the company as and when it has employed any persons.

A. When the company will exceed 10 employees, Gratuity shall be charged to revenue upon the estimates made by the company.

B. Leave encashment is not charged to revenue as the same is not allowed by the company. The unutilised leaves of the employees are allowed to be carried forward to the next year without any lapse. The employees are encouraged to fully utilise their leaves before they retire. At the time of retirement of any employee if there is any balance of unutilised leaves, then the said balance lapses. Hence, the company does not make any provision for leave encashment.

C. When the company will exceed 10 employees, The company shall charge it's contribution to provident fund to Profit & Loss Account of the year.

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Mar 31, 2011

1. The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

5. INVENTORIES

Raw Material is valued at cost .

Closing Stock of WIP has been valued at cost.

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS:- Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

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Mar 31, 2010

1. The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

5. INVENTORIES

Raw Material shall be valued at cost or market value whichever is less.

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS:- Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

DAIRYFIELD LIMITED Notes forming part of Accounts:

1. Corresponding figures of previous year have been regrouped wherever necessary.

2. Balances of Unsecured Loans, Sundry Creditors, Sundry Debtors and Loans & Advances are subject to confirmation.

3. In the opinion of the board all the current assets have a value on realization, in the ordinary course of business at least equal to the amount at which they are stated except doubtful debts amounting to Rs. 1.66 lacks for which no provision is made in the books.

4. As per the explainations & information provided to us, the company has written off Tax Deducted at Source Payable of Rs.4,12,000/-.

6. Based on the information available with the Company, there are no suppliers who are registered under the Micro, Small and Medium Enterprises Development Act, 2006 as at 31st March 2010. Hence, the information as required under the Micro, Small and Medium Enterprises Development Act, 2006 is not disclosed.

8. Deferred Tax

The company is passing through bad times and has huge accumulated losses. At present the company is not carrying on any gainful economic activities. Hence, there is no virtual certainty that the losses will be recouped in foreseeable future. So the deferred tax is not recognised in the books of accounts.

9. At present the company is not undertaking any activity. Hence, the segmental reporting as required by the AS-17 is not presented.

10. The information required as per Paragraph 4 D of part II of schedule VI of the Companies Act 1956, regarding earnings in foreign currency and amount spent in foreign currency are NIL.

11. The information required as per Paragraph 4 C of part II of schedule VI of the Companies Act 1956 ,regarding licensed capacity, installed capacity and actual production is not applicable as the company has already sold its machinery and not carrying any manufacturing activities.

12. The information required as per Paragraph 3 of part II of schedule VI of the Companies Act 1956, regarding quantitative information about the purchase made, the opening and closing stock, raw material consumed are nil.

13. Detail of loans and advances to Directors and Companies, Firms and other parties in which the directors are interested.

14. Information required under AS-18 on Related Party Disclosures issued by the Institute of Chartered Accountants of India.

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Mar 31, 2009

1. The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activites are carried on by the company. However, books of accounts are maintained on a going concern basis.

2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

5. INVENTORIES

Raw Material shall be valued at cost or market value whichever is less.

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX :

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS :

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

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Mar 31, 2008

1. The Company is a sick industrial undertaking u/s 3(l)(o) of the Sick Industrial Company (Special Provision) Act, 1985. The activities are carried on by the company to a limited extent. However, books of accounts are maintained on a going concern basis.

2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION :

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act,1956 on the straight line method in respect of all assets.

5. INVENTORIES

Raw Material is valued at cost or market value whichever is less.

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS:-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

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Mar 31, 2007

1. The Company is a sick industrial undertaking u/s 3(l)(o) of the Sick Industrial Company (Special Provision) Act, 1985. The activities are carried on by the company to a limited extent. However, books of accounts are maintained on a going concern basis. 2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION :

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act,1956 on the straight line method in respect of all assets.

5. INVENTORIES .

Raw Material is valued at cost or market value whichever is less.

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS :-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

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Mar 31, 2006

1. The Company is a sick industrial undertaking u/s 3(l)(o) of the Sick Industrial Company (Special Provision) Act, 1985. The activities are carried on by the company to a limited extent. However, books of accounts are maintained on a going concern basis. 2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION :

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

5. INVENTORIES

A. Raw Material is valued at cost or market value whichever is less.

B. Packing material is valued at cost .

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS:-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

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Mar 31, 1999

1. The Company has adopted accrual system of accounting for expenditure and revenue.

2. All expenditure incurred during the construction period upto 15-2-95 (being the date of commencement of commercial production) and grouped under the head "Expenditure pending allocation" are allocated to different fixed assets as on that date.

3. Fixed Assets are valued at their cost of acquisition inclusive of inward freight, taxes and incidental expenses related to such acquisition and their cost of installation.

4. Depreciation on Fixed Assets of the Company is provided on Straight Line Basis at the rates prescribed under schedule XIV to the Companies Act, 1956.

5. Inventories are valued as follows :

a. Raw Materials i.e. Milk and Milk Powder are valued at cost.

b. Finished goods such as Butter and Ghee are valued at their cost of production.

c. Butter Milk, Sour Milk and Cattle Feed are valued at net realisable value.

d. Stores and Spares are valued at their cost.

6. Miscellaneous Expenditure is being amortised over a period of ten years.

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Mar 31, 1997

1. The Company has adopted accrual system of accounting for expenditure and revenue.

2. All expenditure incurred during the construction period upto 15-2-95 (being the date of commencement of commercial production) and grouped under the head "Expenditure pending allocation" are allocated to different fixed assets as on that date.

3. Fixed Assets are valued at their cost of acquisition inclusive of inward freight,taxes and incidental expenses related to such acquisition and their cost of installation.

4. Depreciation on Fixed Assets of the Company is provided on Straight Line Basis at the rates prescribed under schedule XIV to the Companies Act, 1956. (Also see Note-2 of Schedule - N notes forming parts of Accounts)

5. Inventories are valued as follows :

a. Raw Materials i.e. Milk and Milk Powder are valued at cost. b. Finished goods such as Butter and Ghee are valued at their cost of production. c. Butter Milk, Sour Milk and Cattle Feed are valued at net realisable value. d. Stores and Spares are valued at their cost of purchase.

6. Miscellaneous Expenditure is being amortised over a period of ten years.

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Mar 31, 1996

1. The Company has adopted accrual system of accounting for expenditure and revenue.

2. All expenditure incurred during the construction period upto 15-2-95 (being the date of commencement of commercial production) and grouped under the head "Expenditure pending allocation" are allocated to different fixed assets as on that date.

3. Fixed Assets are valued at their cost of acquisition inclusive of inward freight, taxes and incidental expenses related to such acquisition and their cost of installation.

4. Depreciation on Fixed Assets of the Company is provided on Straight Line Basis at the rates prescribed under schedule XIV to the Companies Act, 1965.

5. Inventories are valued as follows:

a. Milk and Milk Powder are valued at cost.

b. Finished goods such as Butter and Ghee are valued at their cost of production.

c. Butter Milk, Sour Milk and Cattle Feed are valued at net realisable value.

d. Stores and Spares are valued at their cost of purchase.

6. Miscellaneous Expenditure is amortised over a period of ten years.

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Mar 31, 1993

The Company has no fixed assets as on the date of the Balance Sheet and hence no depreciation has been providedin the accounts.

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Mar 31, 1992

The Company has no fixed assets as on the date of the Balance Sheet and hence no depreciation has been providedin the accounts.