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Accounting Policies of Tarai Foods Ltd. Company

Mar 31, 2015

1. General:

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013 under the historical cost convention on the accounting principles of Going Concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements are made relying on these estimates. Any revision to accounting estimates is recognized prospectively.

2. Fixed Assets: TANGIBLEASSETS:

Fixed Assets are stated at cost of acquisition and subsequent improvement hereto including taxes, duties, freight and other incidental

expenses related to acquisition and installation. In accordance with AS 28, where there is any indication of impairment of the Company's assets

related to cash generating unit, carrying amount of such assets are reviewed at Balance Sheet date.

Capital Work-In- Process is carried at cost, comprising direct cost, related incidental expenses, if any to the extent they relate to the period till assets are ready for in tendeduse.

3. Depreciation : TANGIBLE ASSETS:

Depreciation has been provided based on useful life assigned to each asset in accordance with Schedule II of the Companies Act, 2013 as per rates prescribed according to the Straight Line Method.

4. Revenue Recognition and Sales:

Revenue on sale of goods is recognized on transfer of risks and reward which generally coincide with dispatch of goods to the parties. Sales are netofvalueaddedtax.

5. Inventories :

a. Finished Goods are valued at the lower of cost and net realizable value. Cost for this purpose includes direct cost and an appropriate portion of allocable overheads.

b. W.I.P. is valued at cost. Cost for this purpose includesdirect cost and attributable overheads.

c. In case of stores and spares and packing material and raw material, 'Specific Identification' method and for other inventories, FIFO method is used.

6. Employee Benefits:

a. Provident Fund:

Provident Fund is a defined contribution scheme and the Company's contributions are charged to the Profit and Loss Account during the period in which the employee renders the related services.

b. Gratuity and Leave Encashment entitlement:

The company's liability towards the Gratuity and Leave Encashment is accounted for on the basisof actuarial valuation done at the year end and is charged to Statement of Profit and Loss.

7. TAXATION

Income Tax expenses comprise current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Laws). Deferred Tax on assets are recognized and carried forward only if there is a virtual/ reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of respective carrying value at Balance Sheet date.

8. Provisions, Contingent Liabilities and Contingent assets:

Provision is made based on a reliable estimate when it is probable that an outflowof resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.


Mar 31, 2014

1. General:

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accounting principles of Going Concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements are made relying on these estimates. Any revision to accounting estimates is recognized prospectively.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvement hereto including taxes, duties , freight and other incidental expenses related to acquisition and installation. In accordance with AS 28, where there is any indication of impairment of the Company's assets related to cash generating unit, carrying amount of such assets are reviewed at Balance Sheet date.

Capital Work-in- Process is carried at cost, comprising direct cost, related incidental expenses, if any to the extent they relate to the period till assets are ready for intended use.

3. Depreciation:

Depreciation is charged on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

4. Revenue Recognition and Sales:

Revenue on sale of goods is recognized on transfer of risks and reward which generally coincide with dispatch of goods to the parties. Sales are net of value added tax.

5. Inventories:

a. Finished Goods are valued at the lower of cost and net realizable value. Cost for this purpose includes direct cost and an appropriate portion of allocable overheads.

b. W.l.P. is valued at cost. Cost for this purpose includes direct cost and attributable overheads.

c. In case of stores and spares and packing material and raw material, 'Specific Identification' method and for other inventories. FIFO method is used.

6. Employee Benefits:

a. Provident Fund:

Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account as incurred

b. Gratuity and Leave Encashment entitlement:

The company's liability towards the Gratuity and Leave Encashment is accounted for on the basis of actuarial valuation done at the year end and is charged to Statement of Profit and Loss.

7. TAXATION

Income Tax expenses comprise current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Laws). Deferred Tax on assets are recognized and carried forward only if there is a virtual/ reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of respective carrying value at Balance Sheet date.

8. Provisions, Contingent Liabilities and Contingent assets:

Provision is made based a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.




Mar 31, 2013

1. General:

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accounting principles of Going Concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements are made relying on these estimates. Any revision to accounting estimates is recognized prospectively.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvement hereto including taxes, duties, freight and other incidental expenses related to acquisition and installation. In accordance with AS 28, where there is any indication of impairment of the Company''s assets related to cash generating unit, carrying amount of such assets are reviewed at Balance Sheet date.

3. Depreciation:

Depreciation is charged on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

4. Revenue Recognition and Sales:

Revenue on sale of goods is recognized on dispatch of goods to the parties. Sales are net of sales tax.

5. Inventories:

Inventories are valued at the lower of cost and net realizable value. In case of stores and spares and packing material and raw material, ''Specific Identification'' method and for other inventories, FIFO method is used. In case of Finished Goods, cost includes an appropriate portion on allocable overheads.

6. Employee Benefits:

a. Provident Fund:

Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account as incurred.

b. Gratuity

The company provides for the liability on the balance sheet date as per the actuarial valuation done.

c. Leave encashment/ Entitlement:

The employees are entitled to accumulate leaves as per the rules of the Company. Leaves accruing within the year of termination/retirement along with the that of immediately preceeding year subject to maximum mentioned in the policy can be encashed at the time of retirement/ termination. Liability for the leave encashment is provided for on the * basis of the actuarial valuation done.

7. TAXATION

Income Tax expenses comprise current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Laws). Deferred Tax on assets are recognized and carried forward only if there is a virtual/ reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of respective carrying value at Balance Sheet date.

8. Provisions, Contingent Liabilities and Contingent assets:

Provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.


Mar 31, 2011

1. General:

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accounting principles of Going Concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements are made relying on these estimates. Any revision to accounting estimates is recognized prospectively.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvement hereto including taxes, duties, freight and other incidental expenses related to acquisition and installation. In accordance with AS 28,where there is any indication of impairment of the Companys assets related to cash generating unit, carrying amount of such assets are reviewed at Balance Sheet date

3. Depreciation:

Depreciation is charged on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956

4. Revenue Recognition and Sales:

Revenue on sale of goods is recognized on dispatch of goods to the parties. Sales are net of sales tax.

5. Inventories:

Inventories are valued at the lower of cost and net realizable value. In case of stores and spares and packing material and raw material, Specific Identification method and for other inventories, FIFO method is used. In case of Finished Goods, cost includes an appropriate portion on allocable overheads.

6. Employee Benefits:

a. Provident Fund:

Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account as incurred.

b. Gratuity

The company provides for the liability on the balance sheet date and no actuarial valuation is done by them.

c. Leave encashment/ Entitlement:

The employees are entitled to accumulate leaves as per the rules of the Company. Leaves accruing within the year of termination/retirement along with the that of immediately proceeding year can be encashed at the time of retirement/ termination. Liability for the leave encashment is provided for on the basis of the eligible leaves at the close of the year.

7. TAXATION

Income Tax expenses comprise current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Laws). Deferred Tax on assets are recognized and carried forward only if there is a virtual/reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of respective carrying value at Balance Sheet date.

8. Provisions,ContingentLiabilities and Contingent assets:

Provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.


Mar 31, 2010

1. General:

(a) The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accounting principles of Going Concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accural basis except those with significant uncertainties.

(b) The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contin gent liabilities on the date of financial statements. The recognisition, measurement, classification or disclosure of an item or information in the financial statements are made relying on these estimates. Any revsion to accounting estimates is recognized prospectively.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvement hereto including taxes, duties, freight and other incidental expenses related to acquisition and installation. In accordance with AS 28, where there is any indication of impairment of the Companys assets related to cash generating unit, carrying amount of such assets are reviewed at Balance Sheet date.

3. Depreciation:

Depreciation is charged on straight line method at the rates specified In Schedule XIV of the Companies Act,1956.

4. Revenue Recognition and Sales :

Revenue on sale of goods is recognised on despatch of goods to the parties. Sales are net of sates tax.

5. Inventories: Inventories are valued at the lower of cost and net realizable value. In case of stores and spares and packing material, Specific Identification method and for other inventories, FIFO method is used. In case of Finished Goods, cost includes an appropriate portion on allocable overheads.

6. Employee Benefits ;

a). Provident Fund ;

Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account as Incurred.

b). Gratulty :

Gratuity is defined retirement plan. The company provides for the provision and no actuarial valuation is done by them.

c). Leave encashment / Entitlement :

The employees are entitled to accumulate leaves as per the rules of the Company. Liability for the leave encashmenl is provided for on the basis of the eligible leaves at the close of the year.

7. Taxation:

Income Tax expenses comprise current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Laws). Deferred Tax on assets are recognized and carried forward only If there is a virtual / reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of respective carrying value at Balance Sheet date.

8. Provisions, Contingent Liabilities and Contingent assets :

Provision is made based on a reliable estimate when it is probable that an outflow of resources embodying | economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.

 
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