Accounting Policies of Integrated Proteins Ltd. Company

Mar 31, 2014

A) Basic Of Accounting:

The Company adopts accrual basis in the preparation of its accounts following the historical cost convention in accordance with generally accepted accounting principles and in compliance with the accounting standards referred to in Section 211 (3C) and other requirements of the Companies Act, 1956 subject to the notes reported herein above and in our report to members. A summary of the important accounting policies which have been applied consistently is set out below:-

b) Inflation

Assets and liabilities are recorded at historical cost.

c) Fixed Assets And Depreciation

Fixed assets are capitalized at cost inclusive of inward freight, duties, taxes and installation, except in case of revaluation of such assets where it is stated at revalued amount. Interest during the construction period on loans to finance fixed assets is capitalized.

The company is providing Depreciation under the provision of the Companies Act, 1956, under STRAIGHT LINE METHOD basis.

d) Debtors

Sundry debtors are stated after making adequate provision for doubtful debts.

e) Inventories

During the year there is no inventory.

f) Investments

Investments if any are recorded at cost.

g) Use of Estimates

In preparing the Financial Statement in conformity with the accounting principle generally accepted in India. Management is required to make estimated and assumption that affect the reported amount of assets and liability and the disclosure of contingent liabilities as at the date of Financial Statement and the amounts of revenue and expense during the reported period. Actual result could differ from those estimates. Any revision to such estimate is recognized in the period the same is determined.

h) Loans and Advances

Loans and Advances are stated after making adequate provision for doubtful advances except, as Certified by the Directors, Advances of Rupees Thirty Lacs given to the N.E.P.C. for purchase of Wind Mill and Advances given to CEDA and Advance given to GMB towards Lease rent are doubtful.

i) Sales

The Company has sold out its Plant and Michineries of Extraction Plant in earlier years. During the year under consideration the company has let out its building and godowns. The company has also started business of running Weighbridge by installing an electonic weighbridge on the open Plot of land of a Director.

j) Retirement Benefits

As certified by the director at present, company do not have any liability towards gratuity, pension, leave encashment etc, However the same will be charged to profit & loss Account in the year of actual payment.

k) Taxes on Income

Tax expense for the period comprises of current tax, deferred tax and fringe benefit tax. Deferred tax is recognized for all timing differences, subject to consideration of prudence.

I) Liability

Material known liabilities are provided on the basis of available information and data except specifically mentioned separately.

m) Deferred Tax Liability

Deffered income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Diferred tax is a measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax asset are recognized only to the extent that there is virtual certainly that sufficient futere taxable income will be available against which deferred tax asset can be realized . These taxes are re-assessed and recognized every year to the extent that it has become reasonably certain that future taxable income will be available against which deferred tax asset can be realized.

There is time difference between returned income and income as per profit and loss account except premanent difference dtatutorily decided and other related allowances and exemption, As explained and certified by the directors looking in to the huge carried forward losses in the income tax as well as company law Schedule IV there is no possibilities for adjusting the same in near future. In these circumstances it is not provided in the books of account.

n) Confirmation

No confirmation has been obtained from the deptors, creditors, advances and deposits. Accordingly Balance Sheet in these accounts has been considered on the basis of books. The basis of the advances to the concern is treated as certified and confirmed by the directors in this regards.

o) Provisions

A provision is recognized when an eterprise 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 has been made, Provisions are not discounted to its present value and are determined based on best estimate required. These are reviewed at each balance sheet date and adjusted to reflect the current best estimated.

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Mar 31, 2013

A) Basic Of Accounting :

The Company adopts accrual basis in the preparation of its accounts following the historical cost convention in accordance with generally accepted accounting pricnciples and in compliance with the accounting standards referred to in Section 211 (3C) and other requirements of the Companies Act, 1956 subject to the notes reported herein above and in our report to members. A summary of the important account- ing policies which have been applied consistently is set out below:-

aa) In the preceeding year the Company has entered in the deal to sale of total plant & Machinery of solvent extraction plant with M/s. Sahara Gold Industries of Nanded for Rs. 115 Lacs plus tax. During the year under consideration, the company has sold remaining part of its Plant and Machineries for Rs. 1,75,000 plus tax.

b) Inflation

Assets and liabilities are recorded at historical cost.

c) Fixed Assets And Depreciation

Fixed assets are capitalized at cost inclusive of inward freight, duties, taxes and installation, except in case of revaluation of such assets where it is stated at revalued amount. Interest during the construction period on loans to finance fixed assets is capitalized.

The company is providing Depreciation under the provision of the Companies Act, 1956, under STRAIGHT LINE METHOD basis.

d) Debtors

Sundry debtors are stated after making adequate provision for doubtful debts.

e) Inventories

During the year there is no inventory.

f) Investments

Investments if any are recorded at cost.

g) Use of Estimates

In preparing the Financial Statement in conformity with the accounting principle generally accepted in India.Management is required to make estimated and assump- tion that affect the reported amount of assets and liability and the disclosure of contingent liabilities as at the date of Financial Statement and the amounts of revenue and expense during the reported period. Actual result could differ from those estimates. Any revision to such estimate is recognized in the period the same is determined.

h) Loans and Advances

Loans and Advances are stated after making adequate provision for doubtful advances except, as Certified by the Directors, Advances of Rupees Thirty Lacs given to the N.E.P.C. for purchase of Wind Mill and Advances given to GEDA and Advance given to GMB towards Lease rent are doubtful.

i) Sales

Due to shortages of important supplies of raw materials and other allied factors, Management has decided to let out the assets of the company since 1999-2000 rather to go for production activity. Due to this the company has let out its building. The company has committed to sale plant and Machineries to outsiders, during the year and as confirmed by director major part of the deal was completed in earlier years and remaining small portion of the deal is completed in the year 2012-13.

j) Retirement Benefits

As certified by the director at present, company do not have any liability towards gratuity, pention, leave encashment etc. However the same will be charged to profit & loss Account in the year of actual payment.

k) Taxes on Income

Tax expense for the period comprises of current tax, deferred tax and fringe benefit tax. Deferred tax is recognized for all timing differences, subject to consideration of prudence.

I) Liability

Material known liabilities are provided on the basis of available information and data except specifically mentioned separately.

m) Deferred Tax Liability

Deffered income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differ- ences of earlier years. Deferred tax is a measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax asset are recognized only to the extent that there is virtual certainty that sufficient future taxable income will be available against which deferred tax asset can be real- ized.

These taxes are re-assessed and recognized every year to the extent that it has be- come reasonably certain that future taxable income will be available against which deferred tax asset can be realized. There is time difference between returned income and income as per profit and loss account except permanent difference statutorily decided and other related allowances and exemption. As explained and certified by the directors looking in to the huge carried forward losses in the income tax as well as company law Schedule VI there is no possibilities for adjusting the same in near future. In these circumstances it is not provided in the books of account.

n) Confirmation

No confirmation has been obtained from the debtors, creditors, advances and depos- its. Accordingly Balance Sheet in these accounts has been considered on the basis of books. The basis of the advances to the concern is treated as certified and confirmed by the directors in this regards.

o) Provisions

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 has been made. Provisions are not discounted to its present value and are determined based on best estimate required. These are reviewed at each balance sheet date and adjusted to reflect the current best estimated.

p) Amount unpaid and interest on delayed payment, if any, due at the end of the year to Small Scale / Ancillary Industrial Supplier under the ''INTEREST ON DELAYED PAYMENTS TO SMALL SCALE AND ANCILLARY INDUSTRIAL UNDERTAKINGS ACT, 1993, is unascertained in the absence of Status of the supplier

q) Payments to Vendors In S.S.I. Sectors

There are generally made in accordance with agreed terms. The amount, if any ,overdue as on 31st March 2013 has not been ascertained.

r) The Company is having freehold land in its ownership at Village Dhichada, Tal.: Jamnagar, District - Jamnagar. The ownership of some plots of land are disputed by some persons claimed to be legal heirs of seller of such Plots. The matter is pending before the Civil Court, Jamnagar. As the matter is pending before the judicial authority hence is contingent in nature and effect thereof to the company is also not quantifiable.

s) The company has activated D''mat account of shares of the company with CDSL and NSDL. The shareholders can now convert their physical shares to their D'' mat account.

t) During the year under consideration,the company has granted unsecured loan for a sum of Rs. 90,00,000/-to M/s. F. C. Pharmaceuticals Pvt. Ltd. The outstanding bal- ance as on the date of Balance Sheet is Rs. 92,99,589/-.

u) Related Parties transaction (Accounting Standard-18)

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Mar 31, 2010

(a) BASIS OF ACCOUNTING: The Company adopts accrual basis in the preparation of its accounts following the historical cost convention in accordance with generally accepted accounting principles and in compliance with the accounting standards referred to in Section 211(3C) and other requirements of the Companies Act, 1956 subject to the notes reported herein above and in our report to members. A summary of the important accounting policies which have been applied consistently is set out below:-

[aa] The only income during the year is rent from house property. The machinery of the company is not leased to any one during the year. During the year under audit Company has entered in the deal to sale of total plant & machinery of solvent extraction plant with M/S. SAHARA GOLD INDUSTRIES of Nanded for Rs.115.00 lac plus tax. A deposit of Rs.10.00 lac is received. The sale will be completed during F.Y. 2010-2011

(b) INFLATION: Assets and liabilities are recorded at historical cost.

(c) FIXED ASSETS AND DEPECIATION:

a>Fixed assets are capitalized at cost inclusive of inward freight, duties, taxes and installation, except in case of revaluation of such assets where it is stated at revalued amount. Interest during construction period on loans to finance fixed assets is capital- ized.

b>The Company is providing Depreciation under the provisions of the Companies Act, 1956, under STRAIGHT LINE METHOD basis.

c> Company has not leased/used plant and machinery. As certified by the director as per policy of the company Total depreciation Rs. 1016162.00 is being claimed on this plant and machinery and charged to profit and loss account.

(d) DEBTORS: Sundry debtors are stated after making adequate provision for doubtful debts. AS CERTIFIED BY THE DIRECTORS, ADVANCES OF RUPEES THIRTY LACS GIVEN TO THE N.E.P.C. FOR PURCHASE OF WIND MILL AND ADVANCE GIVEN TO GEDA AND ADVANCE GIVEN TO GMB TOWARDS LEASE RENT ARE DOUNTFUL.

(e) INVENTORIES: The inventory consist of the spare parts etc, rest there is no inventory in the absence on any production. Inventories are decided to value at the lower of cost and estimated Net Realizable value after providing for cost of obsolesces and other anticipated losses wherever considered necessary.

(f) INVESTMENT: Investments if any are recorded at cost. At the year end company does not have any investments.

(g) USE OF ESTIMATES: In preparing the Financial Statement in conformity with the ac- counting principles generally accepted in India. Management is required to make esti- mates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities as at the date of Financial Statements and the amounts of revenue and expense during the reported period. Actual result could differ from those estimates. Any revision to such estimate is recognized in the period the same is deter- mined.

(h) LOANS AND ADVANCES: Loans and advances are stated after making adequate provi- sion for doubtful advances.

(i) SALES: Due to shortages of important supplies of raw materials and other allied fac- tors, Management has decided to let out the assets of the company since 1999-2000 rather to go for production activities. Due to this the company has let out its building. The company has committed to sale plant and machineries to outsiders to during the year and as confirmed by director the deal will be started during 2010-11.

(j) RETIREMENT BENEFITS: As certified by the directors at present, company do not have any liability towards gratuity, pensions, leave encashment etc. However the same will be charged to profit & loss Account in the year of actual payments.

(k) TAXES ON INCOME: Tax expense for the period comprises of current tax, deferred tax and fringe benefit tax. Deferred tax is recognized for all timing differences, subject to consideration of prudence

(l) LIABILITY: Material known liabilities are provided on the basis of available information and data except specifically mentioned separately.

(m) DEFERRED TAX LIABILITY: Deferred income taxes reflect 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 a measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax asset are recognized only to the extent that there is virtual certainty that sufficient future taxable income will be available against which deferred tax asset can be realized. These taxes are re-assessed and recognized every year to the extent that it has become reasonably certain that future taxable income will be available against which deferred tax asset can be realized.

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Mar 31, 2009

(a) BASIS OF ACCOUNTING: The Company adopts accrual basis in the preparation of its accounts following the historical cost convention in accordance with generally accepted accounting principles and in compliance with the accounting standards referred to in Section 211 (3C) and other requirements of the Companies Act, 1956 subject to the notes reported herein above and in our report to members. A summary of the important accounting policies which have been applied consistently is set out below:-

[aa] The only income during the year is rent from house property. The machinery of the company is not leased to any one during the year. As certified by the directors they are hope full to get some leasee for the use of machinery and plant. Accordingly, as certi- fied by the directors the company is active and is going concern.

(b) INFLATION: Assets and liabilities are recorded at historical cost.

(c) FIXED ASSETS AND DEPECIATION:

Fixed assets are capitalized at cost inclusive of inward freight, duties, taxes and installation, except in case of revaluation of such assets where it is stated at revalued amount. Interest during construction period on loans to finance fixed assets is capital- ized.

The Company is providing Depreciation under the provisions of the Companies Act, 1956, under STRAIGHT LINE METHOD basis.

(d) DEBTORS: Sundry debtors are stated after making adequate provision for doubtful debts. AS CERTIFIED BY THE DIRECTORS, ADVANCES OF RUPEES THIRTY LACS GIVEN TO THE N.E.P.C. FOR PURCHASE OF WIND MILL AND ADVANCE GIVEN TO GEDA ARE DOUNTFUL.

(e) INVENTORIES: The inventory consist of the spare parts etc, rest there is no inventory in the absence on any production. Inventories are decided to value at the lower of cost and estimated Net Realizable value after providing for cost of obsolesces and other anticipated losses wherever considered necessary.

(f) INVESTMENT: Investments if any are recorded at cost. At the year end company does not have any investments.

(g) USE OF ESTIMATES: In preparing the Financial Statement in conformity with the ac- counting principles generally accepted in India. Management is required to make esti- mates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities as at the date of Financial Statements and the amounts of revenue and expense during the reported period. Actual result could differ from those estimates. Any revision to such estimate is recognized in the period the same is deter- mined.

(h) LOANS AND ADVANCES: Loans and advances are stated after making adequate provi- sion for doubtful advances.

(i) SALES: Due to shortages of important supplies of raw materials and other allied fac- tors, Management has decided to let out the assets of the company since 1999-2000 rather to go for production activities. Due to this the company has let out its building, plant and machineries to outsiders to earn income from Rent and the same is consid- ered as income from business, which is recorded on accrual basis.

(j) RETIREMENT BENEFITS: As certified by the directors at present, company do not have any liability towards gratuity, pensions, leave encashment etc. However the same will be charged to profit & loss Account in the year of actual payments.

(k) TAXES ON INCOME: Tax expense for the period comprises of current tax, deferred tax and fringe benefit tax. Deferred tax is recognized for all timing differences, subject to consideration of prudence

(l) LIABILITY: Material known liabilities are provided on the basis of available information and data except specifically mentioned separately.

(m) DEFERRED TAX LIABILITY: Deferred income taxes reflect 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 a measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax asset are recognized only to the extent that there is virtual certainty that sufficient future taxable income will be available against which deferred tax asset can be realized. These taxes are re-assessed and recognized every year to the extent that it has become reasonably certain that future taxable income will be available against which deferred tax asset can be realized.

There is time difference between returned income and income as per profit and loss account except permanent difference statutorily decided and other related allowances and exemptions. As explained and certified by the directors looking in to the huge carried forward losses in the income tax as well as company law schedule VI there is no possibilities for adjusting the same in near future. In these circumstances it is not provided in the books of account.

(n) CONFIRMATION: No confirmation has been obtained from the debtors, creditors, ad- vances and deposits. Accordingly Balance Sheet in these accounts has been consid- ered on the basis of books. The basis of the advances to the concern is treated as certified and confirmed by the directors in this regards.

(o) PROVISIONS: 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 has been made. Provisions are not discounted to its present value and are determined based on best estimate required. These are reviewed at each balance sheet date and adjusted to reflect the current best estimated.

(p) Amount unpaid and interest on delayed payments, if any, due at the end of the year to Small Scale /Ancillary Industrial Supplier under the INTEREST ON DELAYED PAY- MENTS TO SMALL SCALE AND ANCILLARY INDUSTRIAL UNDERTAKINGS ACT. 1993, is unascertained in the absence of Status of the supplier.

(q) PAYMENTS TO VENDORS IN S.S.I. SECTORS: These are generally made in accor- dance with agreed terms. The amount, if any, overdue as on 31st March 2009 has not been ascertained.