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Accounting Policies of Teesta Agro Industries Ltd. Company

Mar 31, 2014

1.1 The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India. The company has prepared these Financial Statements to comply in all material respects with the accounting Standards notified under the Companies (Accounting Standards) Rules 2006 (As amended) and the relevant provisions of the Companies Act, 1956 read with general circular 8/2014 dated 4th April, 2014 issued by the Ministry of Corporate Affairs. The Financial Statements have been prepared on going concern basis under the historical cost convention . The accounting Policies adopted in the preparation of these Financial statements are consistent with those of previous years.

The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. Where it is not possible to determine the quantum of accrual with reasonable certainty e.g. insurance and other claims, refund of custom/excise duty etc. these continue to be accounted for on settlement basis.

1.2 The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates .

1.3 Fixed Assets are valued at cost less accumulated depreciation. Cost comprises the purchase price including duties and other non refundable taxes or levies directly attributable cost of bringing the assets to its working condition and indirect cost specifically attributable to construction of a project or to the acquisition of a fixed asset. Depreciation has been calculated on straight line method at applicable rates prescribed in Schedule XIV of the Companies Act, 1956.

1.4 An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. An impairment is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

1.5 Inventories are valued at cost.

(a) Inventories of stores & spares and packing materials are valued at FIFO basis.

(b) Major raw materials are valued at cost on FIFO basis; Raw materials for NPK are valued at average cost price.

(c) Finished goods are valued at lower of cost and net realisable value.

1.6 Cost includes cost of purchase, duties, taxes and all other costs incurred in bringing the inventories to their present location.

1.7 a) Sales exclusive of Excise Duty, VAT (Rs.221) and net of dealers'' margin are recognised as revenue on dispatches.

b) Dividend income on investments is accounted for when the right to receive the payment is established.

c) Interest income is accounted on time proportion basis taking into account the amount outstanding and applicable interest rate.

1.8 Rebate/Subsidy receivable from Government on sale of Single Super Phosphate Fertilizer is also recognised on accrual basis. Where the grant or subsidy relates to an asset, it''s value is deducted in arriving at the carrying amount of the related asset.

1.9 Transactions in foreign currencies are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place; assets and liabilities valued at contract/yearend rate and resultant loss or gain is accounted for in the profit and loss account.

1.10 Long term investments are stated at cost and provision for diminution is made, if such diminution is other than temporary in nature. The diminution in value of investment made in units of SBI Mid Cap Fund (Growth Option) amounting to Rs.2 is considered temporary in nature and hence no provision is required .

1.11 Borrowing cost relating to (i) funds borrowed for acquisition/construction of qualifying assets are capitalized up to the date the assets are put to use, and (ii) funds borrowed for other purposes are charged to Profit and Loss Account.

1.12 Tax liability is estimated considering the provisions of the Income Tax Act , 1961. Deferred tax is recognized on timing difference , being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. On prudent basis, Deferred tax asset is recognized and carried forward only when there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.13 Contributions to Provident fund and Superannuation Fund, which are defined contribution schemes are made to a government administered Provident Fund and to recognized trust respectively and are charged to the Profit and Loss account as incurred. The company has no further obligations beyond its contributions to these funds.

Provision for gratuity, under a LIC administered fund, and leave encashment, which are in the nature of defined benefit plans, are provided based on actuarial valuation based on projected unit credit method, as at the balance sheet date.

1.14 Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is possible that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in notes. Contingent assets are neither recognized nor disclosed in the financial statements .


Mar 31, 2010

1.1 Fixed Assets are valued at cost less depreciation. 12 Depreciation has been calculated on straight line method at applicable rates prescribed in Schedule XIV of the Companies Act, 1956. 1.3 Investments are valued at cost. 1.4(a) Inventories of stores & spares and packing materials are valued at FIFO basis.

(b) Raw materials are valued at cost on FIFO basis.

(c) Finished goods are valued at lower of cost and net realisable value.

Cost includes cost of purchase, duties, taxes and all other costs incurred in bringing the inventories to their present location.

1.5 Sales exclusive of Excise Duty and net of dealers margin but inclusive of VAT are recognised as revenue on dispatches.

1.6 Rebate receivable from Government on sale of Single Super Phosphate Fertilizer is also recognised on accrual basis.

1.7 Transactions in foreign currencies are reflected at rates at which transactions are settled; assets and liabilities valued at cotitract/yearend rate and resultant loss or gain is accounted for in the profit and loss account

1.8 No borrowing costs have been capitalized during the year.

1.9 Long term investments are stated at cost and provision for diminution is made, if such diminution is other than temporary in nature. The diminution in value of investment made in SBI Mid Cap Rind (Growth Option) amounting to Rs.1444 is considered temporary in nature and hence no provision is required.

2. Sundry Debtors and advances (considered good) include certain overdue debts/ old advances aggregating to Rs.1485 (Previous Year Rs.1413) for which necessary steps are being taken for realisation and as such no provision there against is considered necessary in these accounts.

3. Balances of certain Sundry Debtors, Sundry Creditors, Loans and Advances and Other Liabilities are in process of confirmation/reconciliation. The management is of the opinion that adjustment if any arising out of such reconciliation would not be material.

4. In the opinion of the Board the Current Assets, Loans and advances appearing in the companys balance sheet as at the year end would have value on realization in the normal course of business at least equal to the respective amounts at which they are stated in the balance sheet.

5. Other income includes Rs.57 (Previous Year Rs. 1682), which represent net effect of some very old outstanding balances written off/back (net).

6. Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to micro, small and medium enterprises. The company is in the process of compiling relevant information from its suppliers about their coverage under the said Act, since the relevant information is not readily available, no disclosure has been made in these accounts.

 
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