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Accounting Policies of Trent Ltd. Company

Mar 31, 2016

1.1 Basis of preparation of accounts

The financial statements are prepared on the accrual basis of accounting and in accordance with the Accounting Standards notified under Companies (Accounts) Rules,2014 and referred under Section 133 of the Companies Act,2013.

1.2 Fixed Assets and depreciation

(a) Fixed Assets are stated at cost less depreciation/amortisation and impairment. Costs comprise of cost of acquisition, Borrowing Cost, Cost of Improvement and any attributable cost of bringing the asset to condition for its intended use.

(b) Depreciation on tangible assets is provided in accordance with useful life as prescribed in Schedule II of the Companies Act,2013. (Refer Note 4.22, Page 127)

(a) In respect of the assets of the Retail Business on "Straight Line" method.

(b) In respect of all other assets on "Written Down Value" method.

(c ) Leasehold land is amortised over the period of lease remaining as at the date of their capitalisation.

(d) Improvement to leasehold premises are depreciated over the period of lease remaining as at the date of their capitalisation.

(e) Intangible Assets are amortised over their useful life or ten years whichever is lower.

1.3 Investments

Long Term Investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of Long Term Investments. Current Investments are stated at lower of cost or fair value.

1.4 Inventories

Inventories are valued at lower of cost or net realisable value.

1.5 Income

(a) Sale of goods is recognised on delivery to customers

(b) Other operating revenues are accounted on accrual basis.

(c) Interest income is accounted on accrual basis.

(d) Dividend income is accounted when right to receive payment is establishe

1.6 Retirement benefits

1.6.1 defined Contribution plans

a) Company''s contributions during the year towards Government administered Provident Fund, Family Pension Fund, ESIC and Labour Welfare Fund are charged to the Profit and Loss Account as incurred.

b) Company''s contributions during the year towards Superannuation to the Superannuation Trust administered by a Life Insurance Company are recognized in the Profit and Loss Account as incurred.

1.6.2 Defined Benefit Plans

a) Company''s Contribution towards Gratuity made under the Group Gratuity Schemes with Life Insurance Companies are determined based on the amounts recommended by Life Insurance Companies as per actuarial valuation.

b) Provision for other retirement / post retirement benefits in the forms of pensions, medical benefits and long term compensated absences (leave encashment) has been made on the basis of actuarial valuation.

1.7 Foreign Currency transactions

Foreign Currency transactions are accounted at the rates prevailing on the date of transaction.

Year end monetary assets and liabilities are translated at the exchange rate ruling on the date of the Balance Sheet.

Exchange differences on settlement/conversion are adjusted to the Profit and Loss Account.

1.8 Provisions And Contingent Liabilities

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.9 Taxation

(a) Current Tax comprises of Provision for Income Tax as determined in accordance with the provisions of Income Tax Act, 1961.

(b) Deferred tax, subject to the consideration of prudence, is recognised on timing differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognised to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In case of unabsorbed depreciation and carry forward tax losses, deferred tax assets are recognised to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.10 Leases

Lease arrangements where the risks and rewards incident to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rents under operating leases are recognised in the Profit and Loss Account on straight line basis.

1.11 Borrowing Cost

Borrowing cost include interest, fees and other charges incurred in connection with the borrowing of funds and is considered as revenue expenditure for the year in which it is incurred. Borrowing cost attributed to the acquisition/improvement of qualifying capital assets and incurred till the commencement of commercial use of the assets is capitalised as cost of the assets.

1.12 Impairment of Assets

The carrying value of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, If the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use.When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit & Loss, except in case of revalued assets.


Mar 31, 2013

1.1 Basis of preparation of accounts

The financial statements are prepared on the accrual basis of accounting and in accordance with the Accounting Standards notified by the Companies (Accounting Standards) Rules,2006 and refered to in Section 211(3C) of the Companies Act,1956

1.2 Fixed Assets and Depreciation

(a) Fixed Assets are stated at cost less depreciation. Costs comprise of cost of acquisition, Borrowing Cost, Cost of Improvement and any attributable cost of bringing the asset to condition for its intended use.

(b) Depreciation on tangible assets is provided in accordance with the provisions of Schedule XIV to the Companies Act, 1956 as under: -

(i) In respect of the assets of the Retail Business on "Straight Line" method.

(ii) In respect of all other assets on "Written Down Value" method.

(iii ) Leasehold land is amortised over the period of lease remaining as at the date of their capitalisation.

(iv) Improvement to leasehold premises are depreciated over the period of lease remaining as at the date of their capitalisation.

(v) Intangible Assets are amortised over their useful life not exceeding ten years.

1.3 Investments

Long Term Investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of Long Term Investments. Current Investments are stated at lower of cost or fair value.

1.4 Inventories

Inventories are valued as under :

Raw materials, packing materials and stores & spares : at cost.

Finished Products : at lower of cost or net realisable value.

1.5 Income

(a) Sale of goods is recognised on delivery to customers

(b) Other operating revenues are accounted on accrual basis.

(c) Interest income is accounted on accrual basis.

(d) Dividend income is accounted when right to receive payment is established.

1.6 Retirement Benefits

1.6.1 Defined Contribution Plans

a) Company''s contributions during the year towards Government administered Provident Fund, Family Pension Fund, ESIC and Labour Welfare Fund are charged to the Profit and Loss Account as incurred.

b) Company''s contributions during the year towards Superannuation to the Superannuation Trust administered by a Life Insurance Company are recognized in the Profit and Loss Account as incurred.

1.6.2 Defined Benefit Plans

a) Company''s Contribution towards Gratuity made under the Group Gratuity Schemes with Life Insurance Companies are determined based on the amounts recommended by Life Insurance Companies as per actuarial valuation.

b) Provision for other retirement / post retirement benefits in the forms of pensions, medical benefits and long term compensated absences (leave encashment) has been made on the basis of actuarial valuation.

1.7 Foreign Currency Transactions

Foreign Currency transactions are accounted at the rates prevailing on the date of transaction.

Year end current assets and liabilities are translated at the exchange rate ruling on the date of the Balance Sheet.

Exchange differences on settlement/conversion are adjusted to the Profit and Loss Account.

1.8 Employee Stock Option Scheme (ESOS)

In respect of Options granted under the Company''s Employee Stock Options Scheme (ESOS), in accordance with guidelines issued by SEBI , the accounting value of options is accounted as Deferred Employee Compensation, which is amortised on a straight line basis over the vesting period.

1.9 Provisions and Contingent Liabilities

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.10 Taxation

(a) Current Tax comprises of Provision for Income Tax and Wealth Tax is determined in accordance with the provisions of Income Tax Act, 1961 and the Wealth Tax Act, 1957.

(b) Deferred tax is recognised on timing difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.11 Leases

Lease arrangements where the risks and rewards incident to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rents under operating leases are recognised in the Profit and Loss Account on straight line basis.

1.12 Borrowing Cost

Borrowing cost include interest, fees and other charges incurred in connection with the borrowing of funds and is considered as revenue expenditure for the year in which it is incurred. Borrowing cost attributed to the acquisition/improvement of qualifying capital assets and incurred till the commencement of commercial use of the assets is capitalised as cost of the assets.

1.13 Impairment of Assets

The carrying value of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, If the carrying amount of these assets exceeds their recoverable amount.The recoverable amount is the greater of the net selling price and their value in use.When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit & Loss, except in case of revalued assets.


Mar 31, 2012

1.1 Basis of preparation of accounts

The financial statements are prepared on the accrual basis of accounting and in accordance with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and refered to in Section 211(3C) of the Companies Act,1956.

1.2 Fixed Assets and Depreciation

(a) Fixed Assets are stated at cost less depreciation. Costs comprise of cost of acquisition, Borrowing Cost, Cost of Improvement and any attributable cost of bringing the asset to condition for its intended use.

(b) Depreciation on tangible assets is provided in accordance with the provisions of Schedule XIV to the Companies Act, 1956 as under:

(a) In respect of the assets of the Retail Business on "Straight Line" method.

(b) In respect of all other assets on "Written Down Value" method.

(c ) Leasehold land is amortised over the period of lease remaining as at the date of their capitalisation.

(d) Improvement to leasehold premises are depreciated over the period of lease remaining as at the date of their capitalisation.

(e) Intangible Assets are amortised over their useful life not exceeding ten years.

3.3 Investments

Long Term Investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of Long Term Investments. Current Investments are stated at lower of cost or fair value.

3.4 Inventories

Inventories are valued as under:

Raw materials, packing materials and stores and spares: at cost.

Finished Products: at lower of cost or net realisable value.

3.5 Income

(a) Sale of goods is recognised on delivery to customers.

(b) Other operating revenues are accounted on accrual basis.

(c) Interest income is accounted on accrual basis.

(d) Dividend income is accounted when right to receive payment is established.

3.6 Retirement Benefits

3.6.1 Defined Contribution Plans

a) Company's contributions during the year towards Government administered Provident Fund, Family Pension Fund, ESIC and Labour Welfare Fund are charged to the Profit & Loss Account as incurred.

b) Company's contributions during the year towards Superannuation to the Superannuation Trust administered by a Life Insurance Company are recognized in the Profit & Loss Account as incurred.

3.6.2 Defined Benefit Plans

a) Company's Contribution towards Gratuity made under the Group Gratuity Schemes with Life Insurance Companies are determined based on the amounts recommended by Life Insurance Companies as per actuarial valuation.

b) Provision for other retirement/post retirement benefits in the forms of pensions, medical benefits and long term compensated absences (leave encashment) has been made on the basis of actuarial valuation.

3.7 Foreign Currency Transactions

Foreign Currency transactions are accounted at the rates prevailing on the date of transaction.

Year end current assets and liabilities are translated at the exchange rate ruling on the date of the Balance Sheet.

Exchange differences on settlement/conversion are adjusted to the Profit and Loss Account.

3.8 Employee Stock Option Scheme (ESOS)

In respect of Options granted under the Company's Employee Stock Options Scheme (ESOS), in accordance with guidelines issued by SEBI, the accounting value of options is accounted as Deferred Employee Compensation, which is amortised on a straight line basis over the vesting period.

3.9 Provisions and Contingent Liabilities

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

3.10 Taxation

(a) Current Tax comprises of Provision for Income Tax and Wealth Tax is determined in accordance with the provisions of Income Tax Act, 1961 and the Wealth Tax Act, 1957.

(b) Deferred tax is recognised on timing difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

3.11 Leases

Lease arrangements where the risks and rewards incident to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rents under operating leases are recognised in the Profit & Loss Account on straight line basis.

3.12 Borrowing Cost

Borrowing cost include interest, fees and other charges incurred in connection with the borrowing of funds and is considered as revenue expenditure for the year in which it is incurred. Borrowing cost attributed to the acquisition/improvement of qualifying capital assets and incurred till the commencement of commercial use of the assets is capitalised as cost of the assets.


Mar 31, 2011

1.0 Basis of preparation of accounts

The financial statements are prepared on the accrual basis of accounting and in accordance with the Standard on Accordance with the standard on Accounting notified by the Companies (Accounting Standards) Rules,2006 and refered to in Section 211(3C) of the Companies Act,1956

2.0 Fixed Assets and Depreciation

2.1 Fixed Assets are stated at cost less depreciation. Costs comprise of cost of acquisition, Borrowing Cost, Cost of Improvement and any attributable cost of bringing the asset to condition for its intended use.

2.2 Depreciation on tangible assets is provided in accordance with the provisions of Schedule XIV to the Companies Act, 1956 as under: -

(a) In respect of the assets of the Retail Business on "Straight Line" method.

(b) In respect of all other assets on "Written Down Value" method.

2.3 Leasehold land is amortised over the period of lease remaining as at the date of their capitalisation.

2.4 Improvement to leasehold premises are depreciated over the period of lease remaining as at the date of their capitalisation.

2.5 Intangible Assets are amortised over their useful life not exceeding ten years.

3.0 Investments

Long Term Investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of Long Term Investments. Current Investments are stated at lower of cost or fair value.

4.0 Inventories

Inventories are valued as under :

Raw materials,packing materials and stores and spares : at cost.

Finished Products : at lower of cost or net realisable value.

5.0 Income

5.1 Sale of goods is recognised on delivery to customers and include amounts recovered towards sales tax.

5.2 Interest income is accounted on accrual basis.

5.3 Dividend income is accounted when right to receive payment is established.

6.0 Retirement Benefits

Defined Contribution Plans

6.1 a) Companys contributions during the year towards Government administered Provident Fund, Family

Pension Fund, ESIC and Labour Welfare Fund are charged to the Profit and Loss Account as incurred.

b) Companys contributions during the year towards Superannuation to the Superannuation Trust administered by a Life Insurance Company are recognized in the Profit and Loss Account as incurred. (Refer Note No 21 (d), Page No. 72)

6.2 Defined Benefit Plans

a) Companys Contribution towards Gratuity made under the Group Gratuity Schemes with Life Insurance Companies are determined based on the amounts recommended by Life Insurance Companies as per actuarial valuation. (Refer Note 21(a), Page No. 71)

b) In the case of certain employees, contribution towards Provident Fund is made to an approved trust administered by the Company. The interest rate payable to the members of the trust shall not be lower than the statutory rate of interest declared by the Central Government under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made good by the Company.

c) Provision for other retirement / post retirement benefits in the forms of pensions, medical benefits and long term compensated absences (leave encashment) has been made on the basis of actuarial valuation.

Schedule Forming Part of the Balance Sheet and Profit and Loss Account (Contd.)

7.0 Foreign Currency Transactions

Foreign Currency transactions are accounted at the rates prevailing on the date of transaction.

Year end current assets and liabilities are translated at the exchange rate ruling on the date of the Balance Sheet.

Exchange differences on settlement/conversion are adjusted to the Profit and Loss Account.

8.0 Employee Stock Option Scheme (ESOS)

In respect of Options granted under the Companys Employee Stock Options Scheme (ESOS), in accordance with guidelines issued by SEBI , the accounting value of options is accounted as Deferred Employee Compensation, which is amortised on a straight line basis over the vesting period.

9.0 Provisions and Contingent Liabilities

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

10.0 Taxation

10.1 Current Tax comprises of Provision for Income Tax and Wealth Tax is determined in accordance with the provisions of Income Tax Act, 1961 and the Wealth Tax Act, 1957.

10.2 Deferred tax is recognised on timing difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

11.0 Leases

Lease arrangements where the risks and rewards incident to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rents under operating leases are recognised in the Profit and Loss Account on straight line basis.

12.0 Borrowing Cost

Borrowing cost include interest, fees and other charges incurred in connection with the borrowing of funds and is considered as revenue expenditure for the year in which it is incurred. Borrowing cost attributed to the acquisition/improvement of qualifying capital assets and incurred till the commencement of commercial use of the assets is capitalised as cost of the assets,


Mar 31, 2010

1.0 Basis of preparation of accounts

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

2.0 Fixed Assets and Depreciation

2.1 Fixed Assets are stated at cost less depreciation. Costs comprise of cost of acquisition, Borrowing Cost, Cost of Improvement and any attributable cost of bringing the asset to condition for its intended use.

2.2 Depreciation on tangible assets is provided in accordance with the provisions of Schedule XIV to the Companies Act, 1956 as under: -

(a) In respect of the assets of the Retail Business on "Straight Line" method.

(b) In respect of all other assets on "Written Down Value" method.

2.3 Leasehold land is amortised over the period of lease remaining as at the date of their capitalisation.

2.4 Improvement to leasehold premises are depreciated over the period of lease remaining as at the date of their capitalisation.

2.5 Intangible Assets are amortised over their useful life not exceeding ten years.

3.0 Investments

Long Term Investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of Long Term Investments. Current Investments are stated at lower of cost or fair value.

4.0 Inventories

Inventories are valued as under:

Raw materials,packing materials and stores and spares: at cost. Finished Products: at lower of cost or net realisable value. 5.0 Income

5.1 Sale of goods is recognised on delivery to customers and include amounts recovered towards sales tax.

5.2 Interest income is accounted on accrual basis.

5.3 Dividend income is accounted when right to receive payment is established. 6.0 Retirement Benefits

Defined Contribution Plans

6.1 a) Companys contributions during the year towards Government administered Provident Fund, Family

Pension Fund, ESIC and Labour Welfare Fund are charged to the Profit and Loss Account as incurred.

b) Companys contributions during the year towards Superannuation to the Superannuation Trust administered by the Life Insurance Comapny are recognized in the Profit and Loss Account as incurred. (Refer Note No 21 (d), Page No. 67)

6.2 Defined Benefit Plans

a) Companys Contribution towards Gratuity made under the Group Gratuity Schemes with Life Insurance Companies are determined based on the amounts recommended by Life Insurance Companies as per actuarial valuation. (Refer Note 21(a), Page No. 66)

b) In the case of certain employees, contribution towards Provident Fund is made to an approved trust administered by the Company. The interest rate payable to the members of the trust shall not be lower than the statutory rate of interest declared by the Central Government under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made good by the Company.

c) Provision for other retirement / post retirement benefits in the forms of pensions, medical benefits and long term compensated absences (leave encashment) has been made on the basis of actuarial valuation.

7.0 Foreign Currency Transactions

Foreign Currency transactions are accounted at the rates prevailing on the date of transaction.

Year end current assets and liabilities are translated at the exchange rate ruling on the date of the Balance Sheet.

Exchange differences on settlement/conversion are adjusted to the Profit and Loss Account.

8.0 Employee Stock Option Scheme (ESOS)

In respect of Options granted under the Companys Employee Stock Options Scheme (ESOS), in accordance with guidelines issued by SEBI , the accounting value of options is accounted as Deferred Employee Compensation, which is amortised on a straight line basis over the vesting period.

9.0 Provisions and Contingent Liabilities

The Company recognises a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

10. Taxation

10.1 Current Tax comprises of Provision for Income Tax, Fringe Benefits Tax and Wealth Tax is determined in accordance with the provisions of Income Tax Act, 1961 and the Wealth Tax Act, 1957.

10.2 Deferred tax is recognised on timing difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

11.0 Leases

Lease arrangements where the risks and rewards incident to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rents under operating leases are recognised in the Profit and Loss Account on straight line basis.

12.0 Borrowing Cost

Borrowing cost include interest, fees and other charges incurred in connection with the borrowing of funds and is considered as revenue expenditure for the year in which it is incurred. Borrowing cost attributed to the acquisition/improvement of qualifying capital assets and incurred till the commencement of commercial use of the assets is capitalised as cost of the assets,

 
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