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Accounting Policies of Yantra Natural Resources Ltd. Company

Mar 31, 2015

A) Basis of preparation of financial statements:-

The financial statements have been prepared under the historical cost convention in accordance with generally accepted Accounting Principles, Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of the Companies Act 2013,as adopted consistently by the company. All income and expenditure having a material bearing on the financial statement are recognized on accrual basis.

b) Use of Estimates :-

The preparation of the financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions

c) Revenue Recognition:-

i. Sale of goods is recognized on dispatch to customers. Sales are net of returns, excise duty and sales tax/VAT.

ii. Interest income is recognized on the time proportionate basis.

iii. Income from Investment/Deposit is credited to revenue in the year in which it received. Income is stated in full with the tax thereon being accounted for under Tax deducted at source.

d) Fixed Assets:-

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any other directly attributable costs of bringing the assets to its working condition for its intended use.

e) Depreciation:-

Depreciation is provided on pro-rata basis on Straight Line Method at the rate prescribed under schedule II to the Companies Act, 2013 with the exception of the following:

i. Assets costing Rs. 5000 or less are fully depreciated in the year of purchased.

f) Impairment of Fixed Assets :-

At the end of each year, the Company determines whether a provision should be made for Impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard (AS-28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit and Loss account in the year in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

g) Inventories:-

i. Raw material and consumable stores & Spares are valued at cost net realizable value, whichever is lower on first in first out basis.

ii. Finished Goods are valued at lower of cost (cost of production method or net realizable value).

iii. Stock in process & Semi Finished Goods valued at cost up to estimated stage of progress.

iv. By Product valued at estimated prices.

h) Investments:-

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments Unquoted Investments are stated cost.

i) Borrowing Costs :-

Borrowing costs consists of interest and other cost that an entity incurs in connection with borrowing of funds. Borrowing costs are recognized as expenses in the period in which these are incurred.

j) Research and Development:-

Research & Development costs of revenue nature are charged to the statement of Profit&Loss when incurred Expenditure.

k) Employee Retirement and other Benefit :-

i. Short Term Employee's Benefits:

All employees' benefits payable within twelve months of rendering services are recognized in the period in which the employees render the related services.

ii. Post-Employment/Retirements Benefits:

Contribution to defined Contribution plans such as Provident Fund etc. are charged to the statement of Profit and Loss as incurred.

iii. Gratuity:

As per AS-15 (Revised) 2005 of ICAI read with Accounting Standard Board Guidance, The Provision for Gratuity Liability is not made since none of the employees have completed 5 years of service for period under review.

l) Taxes on Income :-

Provision for Income tax is made on the basis of relevant provisions of the Income Tax Act, 1961.as applicable to the financial year.

Deferred income taxes are recognized for the future tax consequences attributable to timing differences between the financial statement determination of income and their recognition for tax purposes.

m) Provision contingent liabilities and contingent assets :-

Provision involving substantial degree of estimation in measurement is recognized when there is 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 the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

n) Earnings Per Share( EPS) :-

The basic and diluted EPS is calculated by dividing the Profit/ (Loss) after Tax by the weighted average number of Equity Shares outstanding.


Mar 31, 2012

A) Basis of preparation of financial statements:- The financial statements have been prepared under the historical cost convention in accordance with generally accepted Accounting Principles, Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of the Companies Act 1956,as adopted consistently by the company. All income and expenditure having a material bearing on the financial statement are recognized on accrual basis.

b) Use of Estimates :- The preparation of the financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions.

c) Revenue Recognition:- i. Sale of goods is recognized on dispatch to customers. Sales are net of returns, excise duty and sales tax/VAT.

ii. Interest income is recognized on the time proportionate basis.

iii. Income from Investment/Deposit is credited to revenue in the year in which it received. Income is stated in full with the tax thereon being accounted for under Tax deducted at source.

d) Fixed Assets:- Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any other directly attributable costs of bringing the assets to its working condition for its intended use.

e) Depreciation:- Depreciation on fixed assets is provided on Straight Line method at the rated and in the manner prescribed in schedule XIV to the companies Act, 1956.

f) Impairment of Fixed Assets :- At the end of each year, the Company determines whether a provision should be made for Impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard (AS-28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit and Loss account in the year in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

g) Inventories:-

i. Raw material and consumable stores & Spares are valued at cost net realizable value, whichever is lower on first in first out basis.

ii. Finished Goods are valued at lower of cost (cost of production method or net realizable value).

iii. Stock in process & Semi Finished Goods valued at cost up to estimated stage of progress.

iv. By Product valued at estimated prices.

h) Investments:- Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments Unquoted Investments are stated cost.

i) Borrowing Costs :- Borrowing costs consists of interest and other cost that an entity incurs in connection with borrowing of funds. Borrowing costs are recognized as expenses in the period in which these are incurred.

j) Research and Development:- Research & Development costs of revenue nature are charged to the statement of Profit & Loss when incurred Expenditure.

k) Employee Retirement and other Benefit :-

i. Short Term Employee''s Benefits:

All employees'' benefits payable within twelve months of rendering services are recognized in the period in which the employees render the related services.

ii. Post Employment/Retirements Benefits:

Contribution to defined Contribution plans such as Provident Fund etc. are charged to the statement of Profit and Loss as incurred.

iii. Gratuity:

As per AS-15 (Revised) 2005 of ICAI read with Accounting Standard Board Guidance, The Provision for Gratuity Liability is not made since none of the employees have completed 5 years of service for period under review.

l) Taxes on Income :- Provision for Income tax is made on the basis of relevant provisions of the Income Tax Act, 1961.as applicable to the financial year.

Deferred income taxes are recognized for the future tax consequences attributable to timing differences between the financial statement determination of income and their recognition for tax purposes.

m) Provision contingent liabilities and contingent assets :- Provision involving substantial degree of estimation in measurement is recognized when there is 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 the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

n) Earnings Per Share( EPS) :- The basic and diluted EPS is calculated by dividing the Profit/ (Loss) after Tax by the weighted average number of Equity Shares outstanding.


Mar 31, 2011

A) Basis of preparation of financial statements:-

i. The financial statements are prepared under the historical cost convention, in accordance with the Generally Accepted Accounting Principles in India and the Accounting Standards (AS) as notified under Companies (Accounting Standards) Rules, 2006.

ii. Accounting policies not specifically referred to otherwise, are consistent with generally Accepted Accounting Principles.

iii. The Company generally follows mercantile system of accounting and all income and expenditure items having a material impact on the financial statements are recognized on accrual basis.

b) Use of Estimates :- The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statement and the reported amount of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known/materialize.

c) Fixed Assets:- Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any other directly attributable costs of bringing the assets to its working condition for its intended use.

d) Depreciation:- Depreciation on fixed assets is provided on Straight Line method at the rated and in the manner prescribed in schedule XIV to the companies Act, 1956.

e) Impairment of Fixed Assets :- At the end of each year, the Company determines whether a provision should be made for Impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard (AS-28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit and Loss account in the year in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

f) Revenue Recognition:-

i. Sale of goods is recognized on dispatch to customers. Sales are net of returns, excise duty and sales tax/VAT.

ii. Interest income is recognized on the time proportionate basis.

iii. Income from Investment/Deposit is credited to revenue in the year in which it accrues. Income is stated in full with the tax thereon being accounted for under Tax deducted at source.

g) Inventories:-

i. Raw material and consumable stores & Spares are valued at cost net realizable value, whichever is lower on first in first out basis.

ii. Finished Goods are valued at lower of cost (cost of production method or net realizable value).

iii. Stock in process & Semi Finished Goods valued at cost up to estimated stage of progress.

iv. By Product valued at estimated prices.

h) Investments:- Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long- term investments. Current investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments Unquoted Investments are stated cost.

i) Borrowing Costs :- Borrowing costs consists of interest and other cost that an entity incurs in connection with borrowing of funds. Borrowing costs are recognized as expenses in the period in which these are incurred.

j) Research and Development:- Research & Development costs of revenue nature are charged to Profit & Loss account as and when incurred.

k) Employee Retirement and other Benefit :- i. Short Term Employee''s Benefits:

All employees'' benefits payable within twelve months of rendering services are recognized in the period in which the employees render the related services.

ii. Post Employment/Retirements Benefits:

Contribution to defined Contribution plans such as Provident Fund etc. are charged to the Profit and Loss Account as incurred.

iii. Gratuity:

As per AS-15 (Revised) 2005 of ICAI read with Accounting Standard Board Guidance, The Provision for Gratuity Liability is not made since none of the employees have completed 5 years of service for period under review.

l) Taxes on Income :- Provision for Income tax is made on the basis of relevant provisions of the Income Tax Act, 1961.as applicable to the financial year.

Deferred income taxes are recognized for the future tax consequences attributable to timing differences between the financial statement determination of income and their recognition for tax purposes.

m) Provision contingent liabilities and contingent assets :- Provision involving substantial degree of estimation in measurement is recognized when there is 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 the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

n) Earnings Per Share( EPS) :- The basic and diluted EPS is calculated by dividing the Profit/ (Loss) after Tax by the weighted average number of Equity Shares outstanding.


Mar 31, 2009

A) SYSTEM ACCOUNTING:

The company follows the accrual basis of accounting.

b) FIXED ASSETS

Fixed assets are stated at cost less depreciation

c) DEPRECIATION

Depreciation on fixed assets is provided op Straight Line method at the rates and in the manner prescribed manner prescribed in schedule XIV to the companies Act. 1956.

d) VALUATION OF INVENTORIES:

Raw Material snd Stores & Spares : at cost(fifo method) or market price which ever is lower

Flnished Goods : at lower of cost of production method or realisable value)

Stock in process & Semi Finished Goods : at cost up to estimated stageof progress

By-Product : at estimated prices

 
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