Mar 31, 2016
For the reporting period ended 31st March, 2016
Note 1 (COMPANY INFORMATION)
JVL Agro Industries Limited (the ''Company'') is a public limited company and listed on Bombay Stock Exchange (BSE), National Stock Exchange (NSE). The company is market leader in edible oil industry. The company has started production of rice also. The company has manufacturing facilities in Naupur- Uttar Pradesh, Alwar- Rajasthan, Dehri- Bihar, Haldia- West Bengal and Rohtas, Bihar and sell primarily in India.
Note 2 SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis for preparation of accounts:-
The accounts have been prepared to comply in all material aspects with applicable accounting principles in India. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities. These accounts are prepared on the principles of going concern and consonance with generally accepted accounting principle.
2.2 Revenue Recognition:-
Sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, trade taxes & Freight (on goods manufactured and traded).
2.3 Expenditures:-
Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities except gratuity and misc. petty item which are accounted for on cash basis. Cost of Raw material consumed includes duty, port charges, Transportation, Agent Commission, net of interest on finance charges including gain/(loss) on foreign currency fluctuation, loading/unloading expenses, factory expenses & production expenses etc.
2.4 Tangible Fixed Assets:-
Fixed assets are stated at cost and adjusted by foreign currency fluctuation against loan repayment less accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the profit and loss account. Depreciation on account of fluctuation of foreign currency loans availed in respect of fixed assets is provided as aforesaid over the residual life of the respective fixed assets.
2.5 Depreciation:-
Depreciation on fixed assets is provided on the straight line method. Depreciation is provided based on useful life of the assets as prescribed in Schedule -II to the Companies Act, 2013.
2.6 Intangible Assets:-
Intangible Assests are recorded at the consideration paid for acquisition of such assests and are carried at cost less accumulated amortization and impairments. The cost which can be capitalized include the cost of material/product, direct labour and overhead cost that are directly attributable to preparing and assets for its intended use.
2.7 Investments:-
Investments are stated at the cost value. Investments in shares are stated as Short Term Loans & Advances. As per management, reductions in market rates are temporary, and hence no provision is required to be made in account.
2.8 Inventories:-
Finished goods, traded goods are valued at cost or net market value whichever is lower. Raw Material, Packing Material, Chemicals and Stores are valued at cost. Works in progress are valued at raw material cost. By products are valued at estimated realizable value.
2.9 Current and Deferred Tax Liability/Assets :-
Deferred tax is recognized on timing differences being the differences between taxable incomes and accounting income that originate in one reporting period and are capable of reversal in one or more subsequent reporting period.
2.10 Foreign Currency Transaction:-
Foreign currency transactions are recorded on the basis of exchange rate prevailing on the date of their occurrence. Foreign currency liabilities as on Balance Sheet date are revalued in the accounts on the basis of exchange rates prevailing at the close of the year, exchange differences arises there from is recognize to the statement of profit & loss or is adjusted to the cost of fixed assets. Other exchange differences are recognized as income or expenses in the period in which they arise. Foreign Exchange Gain/Loss arises on forward contract are also recognized in the statement of profit and loss in the reporting period in which exchange rate change. Any profit or loss arising on cancellation or renewal of such a forward exchange contract are also recognized as income or as expense for the period.
2.11 Segment Reporting:-
The company''s present operations are related to production of Vanaspati, Refine & Mustard Oil, DOC and trading of goods, the company has also started production of rice. The entire income of the company is mainly in India, hence there is no reportable geographical segment. Edible Oils (Vanaspati, Refine & Vanaspati ) are the primary segment of the company, production of rice is not reportable segment in accordance with para 27 of Accounting Standard - 17 and there is no secondary segment.
2.12 Earning Per Share:-
Basic earnings per share is calculated by dividing the net profit for the reporting period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
2.13 Government Grants:-
Accrued grants of the nature of investment in industrial unit are first credited to capital reserve account and the same is transferred back to profit & loss statement as exceptional item and actual subsidy received is transferred to Capital Reserve.
2.14 Impairment of Fixed Assets:-
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss 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 recoverable amount.
2.15 Borrowing Cost-
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account.
2.16 Employee Benefit-
Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered. Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.
2.17 Provisions, Contingent Liability & Contingent Assets:-
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 probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes.
Mar 31, 2014
1.1 Basis for preparation of accounts:
The accounts have been prepared to comply in all material aspects with
applicable accounting principles in India. All assets and liabilities
have been classified as current or non-current as per the Company''s
normal operating cycle and other criteria set out in Revised Schedule
VI to the Companies Act, 1956. Based on the nature of products and the
time between acquisition of assets for processing and their realization
in cash and cash equivalents, the Company has ascertained its operating
cycle as 12 months for the purpose of current / non-current
classification of assets and liabilities. These accounts are prepared
on the principles of going concern and consonance with generally
accepted accounting principle.
2.2 Revenue Recognition:- Sales are recognized when the substantial
risks and rewards of ownership in the goods are transferred to the
buyer, upon supply of goods, and are recorded net of trade discounts,
rebates, trade taxes & Freight (on goods manufactured and traded).
2.3 Expenditures:- Expenses are accounted for on accrual basis and
provision is made for all known losses and liabilities except gratuity
and misc. petty item which are accounted for on cash basis. Cost of
Raw material consumed includes duty, port charges, Transportation,
Agent Commission, net of interest on finance charges including
gain/(loss) on foreign currency fluctuation, loading/unloading
expenses, factory expenses & production expenses etc.
2.4 Tangible Fixed Assets:- Fixed assets are stated at cost and
adjusted by foreign currency fluctuation against loan repayment less
accumulated depreciation and accumulated impairment losses, if any.
Subsequent expenditures related to an item of fixed asset are added to
its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
Losses arising from the retirement of, and gains or losses arising from
disposal of fixed assets which are carried at cost are recognized in
the profit and loss account. Depreciation on account of fluctuation of
foreign currency loans availed in respect of fixed assets is provided
as aforesaid over the residual life of the respective fixed assets.
2.5 Depreciation:- Depreciation on fixed assets is provided on the
straight line method at the rates prescribed under Schedule XIV of the
Companies Act, 1956.
2.6 Intangible Assets:- The company does not have any intangible
assets.
2.7 Investments:- Investments are stated at the cost value. Investments
in shares are stated as Short Term Loans & Advances. As per management,
reductions in market rates are temporary, and hence no provision is
required to be made in account.
2.8 Inventories:- Finished goods, traded goods are valued at cost or
net market value whichever is lower. Raw Material, Packing Material,
Chemicals and Stores are valued at cost. Works in progress are valued
at raw material cost. By products are valued at estimated realizable
value.
2.9 Current and Deferred Tax Liability:- Deferred tax is recognized on
timing differences being the differences between taxable incomes and
accounting income that originate in one reporting period and are
capable of reversal in one or more subsequent reporting period.
2.10 Foreign Currency Transaction:- Foreign currency transactions are
recorded on the basis of exchange rate prevailing on the date of their
occurrence. Foreign currency liabilities as on Balance Sheet date are
revalued in the accounts on the basis of exchange rates prevailing at
the close of the year, exchange differences arises there from is
recognize to the statement of profit & loss or is adjusted to the cost
of fixed assets. Other exchange differences are recognized as income or
expenses in the period in which they arise. Foreign Exchange Gain/Loss
arises on forward contract are also recognized in the statement of
profit and loss in the reporting period in which exchange rate change.
Any profit or loss arising on cancellation or renewal of such a forward
exchange contract are also recognized as income or as expense for the
period.
2.11 Segment Reporting:- The company''s present operations are related
to production of Vanaspati,Refine & Mustard Oil, DOC and trading of
goods. The entire income of the company is mainly in India, hence
there is no reportable geographical segment. Vanaspati, Refine &
Vanaspati Oil, Edible Oils are the primary segment of the company and
there is no secondary segment.
2.12 Earning Per Share:- Basic earnings per share is calculated by
dividing the net profit for the reporting period attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the period. For the purpose of calculating diluted
earnings per share, the net profit for the period attributable to
equity shareholders and the weighted average number of shares
outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
2.13 Government Grants:- Grant including
subsidy/rebates/re-imbursements is transferred to statement of profit &
loss a/c from capital reserve on the basis of accrual of same. Grant
relating to fixed assets are credited to Capital Reserve Account or
adjusted in cost of such assets as the case may be.
2.14 Impairment of Fixed Assets:- An asset is treated as impaired when
the carrying cost of asset exceeds its recoverable value. An impairment
loss 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 recoverable amount.
2.15 Borrowing Cost:- Borrowing costs that are attributable to the
acquisition or construction of qualifying assets are capitalized as
part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to Profit and Loss
account.
2.16 Employee Benefit:- Short-term employee benefits are recognized as
an expense at the undiscounted amount in the profit and loss account of
the year in which the related service is rendered. Post employment and
other long term employee benefits are recognized as an expense in the
Profit and Loss account for the year in which the employee has rendered
services. The expense is recognized at the present value of the amounts
payable determined using actuarial valuation techniques. Actuarial
gains and losses in respect of post employment and other long term
benefits are charged to the Profit and Loss account.
2.17 Provisions, Contingent Liability & Contingent Assets:- 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 probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes.
Mar 31, 2013
1.1 Basis for preparation of accounts:- The accounts have been prepared
to comply in all material aspects with applicable accounting principles
in India. All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in Revised Schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current / non-current classification of
assets and liabilities. These accounts are prepared on the principles
of going concern and consonance with generally accepted accounting
principle.
1.2 Revenue Recognition:- Sales are recognised when the substantial
risks and rewards of ownership in the goods are transferred to the
buyer, upon supply of goods, and are recorded net of trade discounts,
rebates, trade taxes & Freight (on goods manufactured and traded).
1.3 Expenditures:- Expenses are accounted for on accrual basis and
provision is made for all known losses and liabilities except gratuity
and misc. petty item which are accounted for on cash basis. Cost of
Raw material consumed includes duty, port charges, Transportation,
Agent Commission, net of interest on finance charges including
gain/(loss) on foreign currency fluctuation, loading/unloading
expenses, factory expenses & production expenses etc.
1.4 Tangible Fixed Assets:- Fixed assets are stated at cost and
adjusted by foreign currency fluctuation against loan repayment less
accumulated depreciation and accumulated impairment losses, if any.
Subsequent expenditures related to an item of fixed asset are added to
its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
Losses arising from the retirement of, and gains or losses arising from
disposal of fixed assets which are carried at cost are recognised in
the profit and loss account. Depreciation on account of fluctuation of
foreign currency loans availed in respect of fixed assets is provided
as aforesaid over the residual life of the respective fixed assets.
During the year Haldia unit has started commercial production, all the
administrative expenditure including finance charges up to the date of
commercial production have been capitalised.
1.5 Depreciation:- Depreciation on fixed assets is provided on the
straight line method at the rates prescribed under Schedule XIV of the
Companies Act, 1956.
1.6 Intangible Assets:- The Company does not have any intangible
assets.
1.7 Investments:- Investments are stated at the cost value. Investments
in shares are stated as Short Term Loans & Advances. As per management,
reductions in market rates are temporary, and hence no provision is
required to be made in account.
1.8 Inventories:- Finished goods, traded goods are valued at cost or
net market value whichever is lower. Raw Material, Packing Material,
Chemicals and Stores are valued at cost. Works in progress are valued
at raw material cost. By products are valued at estimated realisable
value.
1.9 Current and Deferred Tax Liability:- Deferred tax is recognised on
timing differences; being the differences between taxable incomes and
accounting income that originate in one reporting period and are
capable of reversal in one or more subsequent reporting period.
1.10 Foreign Currency Transaction:- Foreign currency transactions are
recorded on the basis of exchange rate prevailing on the date of their
occurrence. Foreign currency liabilities as on Balance Sheet date are
revalued in the accounts on the basis of exchange rates prevailing at
the close of the year, exchange differences arises there from is
recognise to the statement of profit & loss or is adjusted to the cost
of fixed assets.
1.11 Segment Reporting:- The Company''s present operations are related
to production of Vanaspati,Refine & Mustard Oil, DOC and trading of
goods. The entire income of the Company is mainly in India, hence
there is no reportable geographical segment. Vanaspati, Refine &
Vanaspati Oil, Edible Oils are the primary segment of the Company and
there is no secondary segment.
1.12 Earning Per Shares:- Basic earnings per share is calculated by
dividing the net profit for the reporting period attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the period. For the purpose of calculating diluted
earnings per share, the net profit for the period attributable to
equity shareholders and the weighted average number of shares
outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
1.13 Government Grants:- Grant including
subsidy/rebates/re-imbursements is transferred to statement of profit &
loss a/c from capital reserve on the basis of accrual of same. Grant
relating to fixed assets are credited to Capital Reserve Account or
adjusted in cost of such assets as the case may be.
1.14 Impairment of Fixed Assets:- An asset is treated as impaired when
the carrying cost of asset exceeds its recoverable value. An impairment
loss is charged to the Profit and Loss Account in the year in which an
asset is identified as impaired. The impairment loss recognised in
prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
1.15 Borrowing Cost:- Borrowing costs that are attributable to the
acquisition or construction of qualifying assets are capitalised as
part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to Profit and Loss
account.
1.16 Employee Benefit:- Short-term employee benefits are recognised as
an expense at the undiscounted amount in the profit and loss account of
the year in which the related service is rendered. Post employment and
other long term employee benefits are recognised as an expense in the
Profit and Loss account for the year in which the employee has rendered
services. The expense is recognised at the present value of the amounts
payable determined using actuarial valuation techniques. Actuarial
gains and losses in respect of post employment and other long term
benefits are charged to the Profit and Loss account.
1.17 Provisions, Contingent Liability & Contingent Assets:- Provisions
involving substantial degree of estimation in measurement are
recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes.
Mar 31, 2012
1.1 Basis for preparation of accounts:
The accounts have been prepared to comply in all material aspects with
applicable accounting principles in India. All assets and liabilities
have been classified as current or non-current as per the Company's
normal operating cycle and other criteria set out in Revised Schedule
VI to the Companies Act, 1956. Based on the nature of products and the
time between acquisition of assets for processing and their realization
in cash and cash equivalents, the Company has ascertained its operating
cycle as 12 months for the purpose of current / non-current
classification of assets and liabilities. These accounts are prepared
on the principles of going concern and consonance with generally
accepted accounting principle.
1.2 Revenue Recognition:
Sales are recognized when the substantial risks and rewards of
ownership in the goods are transferred to the buyer, upon supply of
goods, and are recorded net of trade discounts, rebates, trade taxes &
Freight (on goods manufactured and traded).
1.3 Expenditures:
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities except misc. petty item which are
accounted for on cash basis. Cost of Raw material consumed includes
duty, port charges, Transportation, Agent Commission, net of interest
on finance charges including gain/(loss) on foreign currency
fluctuation, loading/unloading expenses, factory expenses & production
expenses etc.
1.4 Tangible Fixed Assets:
Fixed assets are stated at cost and adjusted by foreign currency
fluctuation against loan repayment less accumulated depreciation and
accumulated impairment losses, if any. Subsequent expenditures related
to an item of fixed asset are added to its book value only if they
increase the future benefits from the existing asset beyond its
previously assessed standard of performance. Losses arising from the
retirement of, and gains or losses arising from disposal of fixed
assets which are carried at cost are recognized in the profit and loss
account. Depreciation on account of fluctuation of foreign currency
loans availed in respect of fixed assets is provided as aforesaid over
the residual life of the respective fixed assets.
1.5 Depreciation:
Depreciation on fixed assets is provided on the straight line method at
the rates prescribed under Schedule XIV of the Companies Act, 1956.
1.6 Intangible Assets:
The company does not have any intangible assets.
1.7 Investments:
Investments are classified into current and long-term investments and
are stated at the cost value. As per management, investment in shares
and mutual fund are on long term basis, reductions in market rates are
temporary, and hence no provision is required to be made in account.
1.8 Inventories:
Finished goods, traded goods are valued at cost or net market value
whichever is lower. Raw Material, Packing Material, Chemicals and
Stores are valued at cost. Works in progress are valued at raw material
cost. By products are valued at estimated realizable value.
1.9 Current and Deferred Tax Liability:
Deferred tax is recognized on timing differences; being the differences
between taxable incomes and accounting income that originate in one
reporting period and are capable of reversal in one or more subsequent
reporting period.
1.10 Foreign Currency Transaction:
Foreign currency transactions are recorded on the basis of exchange
rate prevailing on the date of their occurrence. Foreign currency
liabilities as on Balance Sheet date are revalued in the accounts on
the basis of exchange rates prevailing at the close of the year,
exchange differences arises there from is recognize to the statement of
profit & loss or is adjusted to the cost of fixed assets.
1.11 Segment Reporting:
The company's present operations are related to production of
Vanaspati,Refine & Mustard Oil, DOC and trading of goods. The entire
income of the company is mainly in India, hence there is no reportable
geographical segment. Vanaspati, Refine & Vanaspati Oil, Edible Oils
are the primary segment of the company and there is no secondary
segment.
1.12 Earning Per Shares:
Basic earnings per share is calculated by dividing the net profit for
the reporting period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period is
adjusted for the effects of all dilutive potential equity shares.
1.13 Government Grants:
Grant including subsidy/rebates/re-imbursements is credited to
statement of profit & loss. Grant relating to fixed assets are credited
to Capital Reserve Account or adjusted in cost of such assets as the
case may be, as and when the ultimate realisibility of such grants is
established.
1.14 Impairment of Fixed Assets:
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss 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 recoverable amount.
1.15 Borrowing Cost:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to Profit and Loss account.
1.16 Employee Benefit:
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered. Post employment and other long term
employee benefits are recognized as an expense in the Profit and
Lossaccount for the year in which the employee has rendered services.
The expense is recognized at the present value of the amounts payable
determined using actuarial valuation techniques. Actuarial gains and
losses in respect of post employment and other long term benefits are
charged to the Profit and Loss account.
1.17 Provisions, Contingent Liability & Contingent Assets:
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 probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes.
Mar 31, 2011
13. Accounting Policies:
i) Fixed Assets & Depreciation :
a) Fixed Assets: Fixed assets are Valued at Cost,and adjusted by
foreign currency fluctuation against Loan Repayment, less depreciation
b) Depreciation on account of fluctuation of Foreign currency Loans
availed in respect of Fixed Assets is provided as aforesaid over the
residual life of the respective Assets.
ii) Inventories:
a) Finished goods,Trading goods are valued at cost or market value
which ever is lower.
b) Raw Material, Packing Materials, Chemicals and Stores are valued at
cost.
c) Work in Progress are valued at Raw Material cost.
d) By products are valued at estimated realisable value
iii) Sales: Sales are inclusive of Excise Duty and net of Rebate,
Freight,Discount.
iv) Raw Material consumption includes duty, port charges,
transportation,agent commission, net of interest and finance
charges,etc.
v) Revenue-Recognition:Expenses and income considered payable and
receivable respectively have been accounted for on accrual basis except
gratuity and misc. petty items which are accounted for on cash basis.
Where the ability to assess the ultimate collection with reasonable
certainty is lacking at the time of raising any claim, revenue
recognition is postponed to the extent of uncertainty involved.
vi) Government Grants- Grant including subsidy/rebates/re-imbursement
are credited to Profit & Loss Account. Grants relating to fixed assets
are credited to Capital Reserve Account or adjusted in the cost of such
assets as the case may be, as and when the ultimate realisability of
such grants are established.
vii) General:
a) These accounts are prepared on the historical cost basis and on the
accounting principles of a going concern.
b) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
viii) Foreign Currency Transactions:
a) Foreign currency transactions are recorded on the basis of exchange
rate prevailing on the date of their occurance.
b) Foreign currency liabilities as on Balance Sheet date are revalued
in the accounts on the basis of exchange rates prevailing at the close
of the year exchange difference arising there from is adjusted to the
cost of Plant & Machineries of units for which loans were taken
ix) Investment are valued at cost. As per management investment in
Shares are on long term basis and reduction in market rates are
temporary and hence no provision is required to be made in accounts.
Mar 31, 2010
A) Fixed Assets: Fixed assets are Valued at Cost, and adjusted by
foreign currency fluctuation against loan repayment, less depreciation.
b) Depreciation on account of fluctuation of Foreign currency Loans
availed in respect of fixed assets is provided as aforesaid over the
residual life of the respective Assets.
ii) Inventories:
a) Finished goods, trading goods are valued at cost or market value
which ever is lower.
b) Raw material, packing materials, chemicals and stores are valued at
cost.
c) Work in progress are valued at raw material cost.
d) By products are valued at estimated realisable value
iii) Sales: Sales are inclusive of excise duty and net of rebate,
freight, discount
iv) Raw material consumption includes duty, port charges,
transportation, agent commission and net of interest, and finance
charges, etc.
v) Revenue-Recognition: Expenses and income considered payable and
receivable respectively have been accounted for on accrual basis except
gratuity and misc. petty items which are accounted for on cash basis.
Where the ability to assess the ultimate collection with reasonable
certainty is lacking at the time of raising any claim, revenue
recognition is postponed to the extent of uncertainty involved.
vi) General:
a) These accounts are prepared on the historical cost basis and on the
accounting principles of a going concern.
b) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
vii) Foreign currency transactions:
a) Foreign currency transactions are recorded on the basis of exchange
rate prevailing on the date of their occurance.
b) Foreign currency liabilities as on Balance Sheet date are revalued
in the accounts on the basis of exchange rates prevailing at the close
of the year exchange difference arising there from is adjusted to the
cost of plant & machineries of units for which loans were taken.
viii) Investment are valued at cost. As per management investment in
shares are on long term basis and reduction in market rates are
temporary and hence no provision is required to be made in accounts.