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Accounting Policies of Vegetable Products Ltd. Company

Mar 31, 2015

A. Basis of Preparation :

The Financial Statements are prepared on Historical Cost Convention. Financial Statements are prepared in accordance with relevant presentational requirements of the Companies Act, 2013 and applicable mandatory Accounting Standards as , prescribed under section 133 of Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014.

b. Basis of Accounting :

The accounts are prepared on the historical cost convention following the accrual : system of Accounting except leave encashment to the employees.

c. Revenue Recognition:

1. Sales are exclusive of sales tax/excise duty and net of returns and are taken into account on passing of the title of goods, Sales on consignment and expenses thereof are being accounted for in the year of receipt of Account Sales from respective consignees.

2. Other income and expenses are accounted for on accrual basis except mentioned : above.

d. Fixed Assets:

All fixed assets are stated at cost including incidental expenses thereto. Revalued assets are stated at the values determined on revaluation.

e. Depreciation:

1. Depreciation on fixed assets including revalued assets have been provided based on useful life assigned to each asset prescribed in accordance with Part - "C" of ; Schedule-II of the Companies Act, 2013

2. Depreciation on additions/deletions is being provided on pro-rata basis from the date of such additions/ deletions,

3. Depreciation on Revalued Assets is adjusted with Revaluation Reserve.

f. Impairment of Assets:

1. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An ; impairment loss is recognized wherever the carrying amount of an asset ¦ exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value at the .. weighted average cost of capital.

2. After impairment, depreciation is provided on the revised carrying amount : of the assets over its remaining useful life.

g. Investments:

Investments of long term in nature are stated at cost. No diminution in the value is recognized, if the same is not permanent in nature.

h. Valuation of Inventories :

* Finished Goods : Lower of cost or market realizable value

* Raw Materials : At cost

* Packing Materials : At cost

* Stores & Spares : At cost

* Work in Process : At estimated cost (which includes Cost of Raw Materials, < Labor & relevant overheads)

i. Retirement Benefits:

1. Definite Contribution:

The company contributes to Provident Fund and ESI which are charged to Profit . & Loss Account.

2. Definite Benefit Obligation

Gratuity is not funded and is provided for in the accounts on the basis of actuarial valuation under projected accrued benefit method.

j. Income Taxes:

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and ' reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only 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 situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty : supported by convincing evidence that they can be realized against future taxable ¦ profits.

k. Earnings per Share :

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the . weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit/ loss for the < year attributable to equity shareholders and the weighted average number of shares . outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

1. Provisions, Contingent Liabilities and Contingent Assets :

A provision is recognized when an enterprise has a present obligation as a result of ¦ past event; it is probable that an outflow of resources will be required to settle the I obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

The Company has only one class of equity share having par value of Rs.10/- per share. Each holder of Equity share is entitled to one vote per share.

In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining : assets of the Company after distribution of all preferential amounts. The Distribution will be in proportion to the number of equity share held by the shareholders.

As per the records of the Company, including its Register of Members and other declarations received from the shareholders regarding beneficial interest, the above shareholders represents legal ownership of shares Soft loan from West Bengal Government is secured against residuary charges on the certain fixed assets of the company which carries interest @ 6.75% p.a.. The above loan is repayable in eight equal annual instalments commencing from 31.12.2000. There is continuing default in repayment of above loan on the reporting date. The Company has disputed the liability against the above loan towards interest. [Refer Note No. 26 (ii)]


Mar 31, 2014

A. Basis of Preparation:

The Financial Statements are prepared on Historical Cost Convention. Financial Statements are prepared in accordance with relevant presentational requirements of the Companies Act, 1956 and applicable mandatory Accounting Standards.

B. Basis of Accounting:

The accounts are prepared on the historical cost convention following the accrual system of Accounting except leave encashment to the employees

c. Revenue Recognition:

1. Sales are exclusive of sales tax/excise duty and net of returns and are taken into account on passing of the title of goods, Sales on consignment and expenses thereof are being accounted for in the year of receipt of Account Sales from respective consignees.

2. Other income and expenses are accounted for on accrual basis except mentioned above

d. Fixed Assets:

All fixed assets are stated at cost including incidental expenses thereto. Revalued assets are stated at the values determined on revaluation.

e. Depreciation

1. Depreciation on fixed assets including revalued assets have been provided on written down value method at the rates prescribed in Schedule XIV to the Companies Act,1956 and Depreciation on additions/deletions is being provided on pro-rata basis from the date of such additions/deletions,

2. Depreciation on Revalued Assets is adjusted with Revaluation Reserve

f. Investments:

Investments of long term in nature are stated at cost. No diminution in the value is recognized, if the same is not permanent in nature.

C. Valuation of Inventories :

- Finished Goods : Lower of cost or market realizable value

- Raw Materials : At cost

- Packing Materials : At cost

- Stores & Spares : At cost

- Work in Process : At estimated cost (which includes Cost of Raw Materials, Labor & relevant overheads)

h. Retirement Benefits:

1. Definite Contribution:

The company contributes to Provident Fund and ESI which are charged to Profit & Loss Account.

D. Definite Benefit Obligation

Gratuity is not funded and is provided for in the accounts on the basis of actuarial valuation under projected accrued benefit method

k. Income Taxes:

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only 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 situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

j. Earnings per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit/ loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

k. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

 
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