Mar 31, 2015
1. Basis of Preparation of Financial Statements
The financial statements have been prepared in accordance with the
generally accepted accounting principles in India. The company has
prepared these financial statements to comply win all material respects
with the accounting standards notified under section 133 of the
Companies Act 2013, read together with paragraph 7 of Companies
(Accounts) Rules 2014. The financial statements have been prepared on
accrual basis and under the historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of the previous year except for
change in accounting policy as explained below.
All assets and liabilities have been classified as current and
non-current as per the company''s normal operating cycle and other
criteria set out in Schedule III of the Companies Act 2013.
Based on the nature of business 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.
2. Change in Accounting Policy:
Till the year ended 31-03-2014, Schedule XIV of Companies Act 1956
prescribed requirements concerning depreciation of fixed assets. From
the current year, Schedule XIV has been replaced by Schedule II to the
Companies Act 2013. The applicability of Schedule II has resulted in
the following changes related to depreciation of fixed assets.
Useful life / depreciation rates:
Till year ended 31-03-2014, depreciation rates prescribed under
Schedule XIV were treated as minimum rates and the company was not
allowed to charge depreciation at lower rates even if such lower rates
were justified by the estimated useful life of particular asset.
Schedule II of the Companies Act 2013 prescribes useful life for fixed
assets, which in many cases are different from lives prescribed under
erstwhile Schedule XIV.
Considering applicability of Schedule II the management has re
estimated useful life and residual value of fixed assets. The company
has adopted useful life period the same as per Schedule II unless
otherwise stated.
Based on above useful life the depreciation upto 31-03-2014 has been
restated and charges for current year. The excess deprecation on
account of above exercise upto 31-03-2014 has been reduced from surplus
in Profit and Loss Account by Rs.168,99,659/
3. Valuation of Inventories
(i) Raw material, At cost or market value whichever
is less. Cost is determined on
FIFO basis.
(ii) Stores & Spares At average cost. For this purpose
Consumables, packing material. cost of stores, spares, consumables
and packing materials purchased in
the last month of the accounting
year is considered. Cost includes
all direct expenses for procuring
the material, transportation and
storing.
(iii) Finished Goods Cost of production or net realizable
value whichever is less.
(iv) Traded goods At cost or market value which ever
is lower. Cost is determined on
FIFO basis.
4. Cash Flow Statement
The cash flow statement is prepared under indirect method as per the
Institute of Chartered Accountant of India guidelines.
Cash and Cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short term investments with an
original maturity of three months or less.
5. Recognition of Income and Expenditure
Items of Income and Expenditure are recognized on accrual basis except
for the following which are being accounted for on cash basis since it
is not possible to ascertain the exact quantum with reasonable
accuracy:-
a. Capital Subsidy
b. Insurance Claims
c. Withheld payments on account of rebates, claims, bargain settlement
etc.
6. Fixed Assets and Capital Work in Progress
Fixed Assets and Work in Progress are accounted on historical cost
basis.
7. Indirect Expenses on Expansion
In respect of independent project, indirect expenses relating to the
project are accounted separately and shall be capitalized at the time
of commencement of commercial production. In respect of expansion
facilities which are carried concurrently with production facilities of
existing units, expenses on administration and supervision incurred on
expansion (the bifurcation of which between production and construction
activities could not be ascertained) are charged to revenue as the
total amount of such expenses is not considered material in the context
of expansion expenditure.
8. Depreciation
Depreciation on fixed assets is calculated on straight line method
using rates arrived at based on useful life estimated by management in
case of all assets except for Refinery Machinery. In case of Refinery
Machinery the same is calculated on written down value basis. The
company has used the following useful life to provide depreciation on
its fixed assets. (useful life no of years)
Factory buildings, go down buildings 30
Office and other buildings 60
Site Development 10
Plant and machinery (Continues Process) 8
Furniture and fixture 10
Other P&M, Electrical equip, lab and mis equip 10
Office equipments 5
Vehicles 8
Windmill 22
Earth moving equipments 9
Computer 3
The useful life of assets are same as per Schedule II of the Companies
Act 2013.
Intangible assets: Software is amortized on straight line basis over a
period of 3 years.
9. Impairment Loss
Impairment loss is provided to the extent the carrying amount of assets
exceeds their recoverable amounts. Recoverable amount is the higher of
an asset''s net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of the asset and from its disposal at the end of its
useful life. Net selling price is the amount obtainable from sale of
the asset in an arm''s length transaction between knowledgeable, willing
parties, less the costs of disposal. During the year there is no
impairment loss of any asset.
10. Borrowing Costs
Borrowing cost directly attributable to the acquisition or construction
of fixed assets is capitalized as part of the cost of the asset, up to
the date the asset is put to use. Other borrowing costs are charged to
the Profit and Loss Account in the year in which they are incurred.
11. Retirement Benefits.
Contribution to Provident Fund is accounted on accrual basis. All Leave
encashment dues for the year are settled within the same year.
Gratuity: Company''s liability towards gratuity is considered as a
Defined Benefit Plan. The present value of obligations towards gratuity
are determined on actuarial valuation as certified by actuarial valuer.
Actuarial gains and losses are recognized in full in the period in
which they occur in the statement of profit and loss.
Gratuity being administered by a trust is computed as 15 days salary,
for every completed year of service or part thereof in excess of 6
months and is payable on retirement / termination/ resignation. The
benefit vests on the employee completing 5 years of service. The
Gratuity plan for the company is a defined benefit scheme where annual
contributions as demanded by the insurer are deposited to a Gratuity
Trust Fund established to provide gratuity benefits. The Fund has taken
a scheme of insurance, whereby these contributions are transferred to
the insurer.
12. Taxes on Income
Tax expenses comprise both current tax and deferred tax at the
applicable enacted/ substantively enacted rates. Current tax
represents the amount of income tax payable in respect of the taxable
income for the reporting period. Deferred tax represents the effects
of timing differences between taxable income and accounting income for
the reporting period that originate in one period and are capable of
reversal in one or more subsequent periods. Current taxes are measured
at the current rate of tax in accordance with provisions of the Income
tax Act, 1961. Deferred Tax assets and Liabilities are measured using
the tax rates and tax laws that have been enacted or substantially
enacted by the Balance sheet date.
Provision for current tax is made in the accounts on the basis of
estimated tax liability as per applicable provisions of the Income Tax
Act 1961 and considering assessment orders and decisions of the
appellate authorities in Company''s cases.
13. NCDEX Transactions
The Company is mainly engaged in buying of Soybean seeds and
manufacturing of Soybean oils and Soy De-Oiled Cakes and buying and
selling of Traded goods like Wheat, Tuar, Gram etc. The Company deals
on National Commodity and Derivatives Exchange Ltd (NCDEX) through
brokers. The net gain or loss is accounted for in the books after the
transaction is squared up. Gain or loss is recognized in case of
completed transaction till the year end. In case of transactions of
other goods in NCDEX same method is followed.
14. Contingent Liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or non
occurrence of one or more uncertain future events beyond the control of
the company or a present obligation that is not recognized because it
is not probable than an outflow of resources will be required to settle
the obligation. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognized because it
cannot be measured reliably. The company does not recognize a
contingent liability but discloses its existence in the financial
statements.
15. Foreign Exchange Transactions: There are no foreign exchange
transactions during the current year or in previous years.
16. Segment Reporting Policies:
Identification of segments:
The company''s operating business are organized and managed separately
according to the nature of products with each segment representing a
strategic business unit that offer different products and serves
different markets.
Assets, liabilities, revenue and expenditure identified to each segment
is taken as segment related transaction. Common assets, liabilities
and expenses are not allocated to segments.
17. Earning per share:
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculated diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
18. Additional information:
Consumption
Value of imported and indigenous Raw material, Traded Goods & Process
Inputs consumed and percentage thereof:
S.N. Particulars Year Year
2014-2015 2013-2014
1 Raw Materials, Traded NIL NIL NIL NIL
goods & Process Inputs 28,507.46 100% 32,451.51 100%
Imported Indigenous Lacs Lacs
2 Stores and spares:
(Including consumables & NIL NIL NIL NIL
packing Material) 58.30 Lacs 100% 123.06 100%
Imported Indigenous Lacs
3. CIF Value of Imports NIL NIL NIL NIL
4 Expenditure in Foreign NIL NIL NIL NIL
Currency
5 Earning in foreign NIL NIL NIL NIL
currency (Direct Export)
B) ther Notes:
Contingent Liabilities
1. (a) Estimated amount of capital commitments on contracts to be
executed net of advances is Rs. Nil (Previous year Rs. NIL). Bank
guarantees issued on behalf of the company Rs.22.38 lacs (Previous year
Rs. 21.48 lacs)
1. (b) Income Tax Rs.15.90 Lacs (Previous year Rs.15.90 Lacs): In
respect of demand from the Income Tax department, the case is before
the Settlement Commission. The company has already remitted tax of
Rs.39.80 lacs under protest and shown under advances. As per the legal
opinion obtained by the company, there will not be any demand and the
entire amount is likely to be refunded. However tax on income
surrendered before the Commission amounts to Rs.15.90 lacs is shown as
contingent liability. The company has filed petition in Honorable High
court of M.P for granting stay for referring the case back to the
Commissioner Income Tax. The Honorable High Court granted the stay in
favour of the company. Further details in this case is awaited.
1(c) In respect of demand Rs. 6,32,244 from the commercial tax
department for the period 01-04-2006 to 31-03-2007, the company filed
an appeal with the M.P Commercial Tax Appellate Board, Bhopal. Against
the demand the company already deposited Rs.1,27,000. Against demand of
Rs. 4,70,271/- by Assessing Officer MP VAT for 2011-12, which is under
appeal, the company has deposited Rs 48,000/-
1(d) In respect of demand Rs.5.21 lacs from the IT dept for the year
2009-10 (AY 2010-11) against appeal before Appellate Commissioner,
Income Tax, Bhopal.
2. Sundry Debtors and Sundry Creditors balances are subject to
confirmation.
3. The figures of previous year have been reclassified and/or
regrouped wherever necessary to confirm current year classification or
group.
4. Windmill Power Project: In respect of Wind Mill Generator at
Navneeta Krishna Puram, Tirunelveli, Tamil Nadu.
5. Sale of Generated power during the year 2014-15 is 8,99,616 units.
(Previous Year: 9,52,262 Units).
6. Related Party Disclosure (As identified by the Management)
Related party Relationships
a) Where control exists: Kailash Chand Sharma, J.P.Agrawal, Sharad
Kumar Jain.
b) Key Management Personnel: Shri Kailash Chand Sharma, Managing
Director
c) Relatives of Key Management Personnel: Mr. Ritesh Sharma related to
Managing Director
In respect of above parties, there is no provision for doubtful debts
as on 31st March 2015 and no amount has been written off or written
back during the year in respect of debts due from/to them.
Transactions with related parties during the year:
J. P.Agrawal - Managerial remuneration paid Rs.6.00 lacs;
K. C. Sharma - Managerial remuneration paid Rs.6.00 lacs;
Ritesh Sharma - Related to MD - Remuneration paid during the year
Rs.5.95 lacs;
Sharad Kumar Jain - Managerial remuneration paid Rs. 6.00 lacs.
7. In accordance with the revised accounting standard -15 details are
given below, which are certified by the actuary and relied upon by the
auditors. The following tables summarize the components of net benefit
expenses recognized in the profit and loss account and the unfunded
liability status and amounts recognized in the balance sheet for the
gratuity.
Mar 31, 2014
1. Basis of Preparation of Financial Statements
The financial statements are prepared on the historical cost convention
basis in accordance with the generally accepted accounting principles
and the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956.
2. VALUTATION OF INVENTORIES
(i) Raw material,
At cost or market value whichever is less. Cost is determined on FIFO
basis
(ii) & Spares Consumables, packing material.
At average cost. For this purpose cost of stores, spares, consumables
and packing materials purchased in the last month of the accounting
year is considered. Cost includes all direct expense s for procuring
the Imaterial, transportation and storing.
(iii) Finished Goods Cost of production or net realizable value
whichever is less.
(iv) Traded goods
At cost or market value which ever is lower. Cost is determined on FIFO
basis.
3. Cash Flow Statement
The cash flow statement is prepared under indirect method as per the
Institute of Chartered Accountant of India guidelines.
Cash and Cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short term investments with an
original maturity of three months or less.
4. Recognition of Income and Expenditure
Items of Income and Expenditure are recognized on accrual basis except
for the following which are being accounted for on cash basis since it
is not possible to ascertain the exact quantum with reasonable accuracy
:-
a. Capital Subsidy
b. Insurance Claims
c. Withheld payments on account of rebates, claims, bargain settlement
etc.
5. Fixed Assets and Capital Work in Progress
Fixed Assets and Work in Progress are accounted on historical cost
basis.
6. Indirect Expenses on Expansion
In respect of independent project, indirect expenses relating to the
project are accounted separately and shall be capitalized at the time
of commencement of commercial production. In respect of expansion
facilities which are carried concurrently with production facilities of
existing units, expenses on administration and supervision incurred on
expansion (the bifurcation of which between production and construction
activities could not be ascertained) are charged to revenue as the
total amount of such expenses is not considered material in the context
of expansion expenditure.
7. Depreciation
Depreciation on all fixed assets put to use is provided on straight
line method at rates specified in Schedule XIV to the Companies Act,
1956 on pro rata date basis, except for Refinery on which depreciation
on written down value method at the rate specified in Schedule XIV to
the Companies Act is adopted on pro rata date basis.
8. Impairment Loss
Impairment loss is provided to the extent the carrying amount of assets
exceeds their recoverable amounts. Recoverable amount is the higher of
an asset''s net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of the asset and from its disposal at the end of its
useful life. Net selling price is the amount obtainable from sale of
the asset in an arm''s length transaction between knowledgeable, willing
parties, less the costs of disposal. During the year there is no
impairment loss of any asset.
9. Borrowing Costs
Borrowing cost directly attributable to the acquisition or construction
of fixed assets is capitalized as part of the cost of the asset, up to
the date the asset is put to use. Other borrowing costs are charged to
the Profit and Loss Account in the year in which they are incurred.
10. Retirement Benefits.
Contribution to Provident Fund is accounted on accrual basis. All Leave
encashment dues for the year are settled with in the same year.
Gratuity being administered by a trust is computed as 15 days salary,
for every completed year of service or part thereof in excess of 6
months and is payable on retirement / termination/ resignation. The
benefit vests on the employee completing 5 years of service. The
Gratuity plan for the company is a defined benefit scheme where annual
contributions as demanded by the insurer are deposited to a Gratuity
Trust Fund established to provide gratuity benefits. The Fund has taken
a scheme of insurance, whereby these contributions are transferred to
the insurer.
11. Taxes on Income
Tax expenses comprise both current tax and deferred tax at the
applicable enacted/ substantively enacted rates. Current tax
represents the amount of income tax payable in respect of the taxable
income for the reporting period. Deferred tax represents the effects
of timing differences between taxable income and accounting income for
the reporting period that originate in one period and are capable of
reversal in one or more subsequent periods. Current taxes are measured
at the current rate of tax in accordance with provisions of the Income
tax Act, 1961. Deferred Tax assets and Liabilities are measured using
the tax rates and tax laws that have been enacted or substantially
enacted by the Balance sheet date.
Provision for current tax is made in the accounts on the basis of
estimated tax liability as per applicable provisions of the Income Tax
Act 1961 and considering assessment orders and decisions of the
appellate authorities in Company''s cases.
12. NCDEX Transactions
The Company is mainly engaged in buying of Soya bean seeds and
manufacturing of Soya bean oils and Soya De - Oiled Cakes and buying
and selling of Traded goods like wheat, Tour, Gram etc. The Company
deals on National Commodity and Derivatives Exchange Ltd (NCDEX)
through brokers. The net gain or loss is accounted for in the books
after the transaction is squared up. Gain or loss is recognized in case
of completed transaction till the year end. In case of transactions of
other goods in NCDEX same method is followed.
13. Contingent Liabilities
Contingent liabilities are disclosed after a careful evaluation of
facts and their legal aspects.
14. Additional information required under Schedule VI of the Companies
Act 1956.
CONSUMPTION
Value of imported and indigenous Raw material & Stock consumed and
percentage thereof including trial run period:
Mar 31, 2013
1. Basis of Preparation of Financial Statements
The financial statements are prepared on the historical cost convention
basts in accordance with the generally accepted accounting principles
and the Accounting Standards referred to in Section 211 (3C) of the
Companies Act.
2. VALUTATION OF INVENTORIES
(i) Raw material, At cost or market value whichever is less. Cost is
determined on FIFO basis
(ii) Stores & Spares Consumables, packing material.
At average cost. Forthis purpose cost of stores, spares, consumables
and packing materials purchased in the last month of the accounting
year is considered. Cost includes all direct expenses for procuring the
material, transportation and storing.
(iii) Finished Goods Cost of production or net realizable value
whichever is less.
(iv) Traded goods At cost or market value which ever is lower. Cost is
determined on
FIFO basis.
3. Cash Flow Statement
The cash flow statement is prepared under indirect method as per the
Institute of Chartered Accountant of India guidelines.
Cash and Cash equivalents for the purposes of cash fiow statement
comprise cash at bank and in hand and short term investments with an
original maturity of three months or less.
4. Recognition of Income and Expenditure
Items of Income and Expenditure are recognized on accrual basis except
forlhe following which are being accountedforon cash basis since it is
not possible to ascertain the exactquantum with reasonable accuracy:-
a. Capital Subsidy
b. Insurance Claims
c. Withheld payments onaccount of rebates, claims, bargain settlement
etc.
5. Fixed Assets and Capital Work in Progress
Fixed Assets and Work in Progress are accounted on historical cost
basis,
6. Indirect Expenses on Expansion
In respect ot independent project, indirect expenses relating to the
project are accounted separately and shall be capitalized
atthetimeofcommencement of commercial production. In respect of
expansion facilities which are carried concurrently with production
facilities of existing units, expenses on administration and
supervision incurred on expansion (the bifurcation of which between
production and construction activities could not be m ascertained) are
charged to revenue as the total amount of such expenses is not
considered material in the context of expansion expenditure.
7. Depreciation
Depreciationonalltixedassetsputto use is provided on straight line
method at rates specified in Schedule XIV to the Companies Act, 1956 on
pro rata date basis, except for Refinery on which depreciation on
written down value method at the rate specified in Schedule XIV to the
Companies Act isadoptedonproratadatebasis.
8. Impairment Loss
Impairment loss is provided1 to the extent the carrying amount of
assets exceeds their recoverable amounts. Recoverable amount is the
higher of an asset''s net spelling price and its value in use. Value in
use is the present value of estimated future cash flows expected to
arise from the continuing use of the asset and from its disposal at the
end of its useful life. Net selling price is the amount obtainable from
sale of the asset in an arm''s length transaction between knowledgeable,
willing parties, less the costs of disposal. During the year there is
no impairment loss of any asset
9. Borrowing Costs
Borrowing cost directly attributable to the acquisition or construction
of fixed assets is capitalized as part of the cost of the asset up to
the date the asset is put to use. Other borrowing costs are charged to
the Profit and Loss Account in the year in which they are incurred.
10. Retirement Benefits.
Contribution to Provident Fund is accounted on accrual basis. All Leave
encashment dues for the year are settled with in the same year.
Gratuity being administered by a trust is computed as 15 days salary,
for every completed year ot service or part thereof in excess ot 6
months and is payable on retirement / termination/ resignation. The
benefit vests on the employee completing 5 years of service. The
Gratuity plan for the company is a defined benefit scheme where annual
contributions as demanded by the insurer are deposited to a Gratuity
Trust Fund established to provide gratuity benefits. The Fund has taken
a scheme of insurance, whereby these contributions are transferred to
the insurer.
11. Taxes on Income
Tax expenses comprise both current tax and deferred tax at the
applicable enacted/ substantively enacted rates. Current tax
represents the amount of income tax payable in respect of the taxable
income for the reporting period. Deferred tax represents the effects
of timing differences between taxable income and accounting income for
the reporting period that originate in one period and are capable of
reversal in one or more subsequent periods. Current taxes are measured
a1 the current rate of tax in accordance with provisions of the Income
tax Act, 1961. Deferred Tax assets and Liabilities are measured using
the lax rates and tax laws that have been enacted or substantially
enacted by the Balance sheet date.
Provision for current tax is made in the accounts on the basis of
estimated tax liability as per applicable provisions of the Income Tax
Act 1961 and considering assessment orders and decisions of the
appellate authorities in Company''s cases.
12. NCDEX Transactions
The Company is mainly engaged in buying of Soya bean seeds and
manufacturing of Soya bean oils and Soya De - Oiled Cakes and buying
and selling of Traded goods like wheat, Tour, Gram etc. The Company
deals on National Commodity and Derivatives Exchange Ltd (NCDEX)
through brokers. The net gain or loss is accounted f<* in the books
after the transaction is squared up. Gain or loss is recognized in case
of completed transaction till the year end. In case of transactions of
other goods in NCDEX same method is followed.
13. Contingent Liabilities
Contingent liabilities are disclosed after a careful evaluation of
facts and their legal aspects.
Mar 31, 2012
1. Basis of Preparation of Financial Statements
The financial statements are prepared on the historical cost convention
basis in accordance with the generally accepted accounting principles
and the Accounting Standards referred to in Section 211 (3C) of the
Companies Act.
3. Cash Flow Statement
The cash flow statement &, prepared under indireci/method as
per the Institute af Chartered Accountant of India guidelines.
Cash and Cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short term investments with an
original maturity of three months or less.
4. Recognition of Income and Expenditure
Items of income and Expenditure are recognized on accrual basis
except for trig following which are being accounted for on cash basis
since it not possible to ascertain the exact quantum with
reasonable accuracy:-
a. Capital Subsidy
b. Insurance Claims
c. Withheld payments on accounts of rebates claims, bargain
settlement etc.
5. Fixed Assets and Capital Work in Progress
Fixed Assets and Work in Progress are accounted on historical cost
basis.
6. Indirect Expenses on Expansion
In respect of independent project, indirect expenses relating to the
project are accounted separately and shall be capitalized at the time
of commencement of commercial production. In respect of expansion
facilities which are carried concurrently with production facilities of
existing units, expenses on administration and supervision incurred on
expansion (the bifurcation of which between production and construction
activities could not be ascertained) are charged to revenue as the
total amount of such expenses is not considered material in the context
of expansion expenditure.
7. Depreciation
Depreciation on all fixed assets put to use is provided on straight
line method at rates specified in Schedule XIV to the Companies Act,
1956 on pro rata date basis, except for Refinery on which depreciation
on written down value method at the rate specified in Schedule XIV to
the Companies Act is adopted on pro rata date basis.
8. Impairment Loss
Impairment loss is provided to the extent the carrying amount of assets
exceeds their recoverable amounts. Recoverable amount is the higher of
an asset's net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of the asset and from its disposal at the end of its
useful life. Net selling price is the amount obtainable from sale of
the asset in an arm's length transaction between knowledgeable, willing
parties, less the costs of disposal. During the year there is no
impairment loss of any asset.
9. Borrowing Costs
Borrowing cost directly attributable to the acquisition or construction
of fixed assets is capitalized as part of the cost of the asset, up to
the date the asset is put to use. Other borrowing costs are charged to
the Profit and Loss Account in the year in which they are incurred.
10. Retirement Benefits.
Contribution to Provident Fund is accounted on accrual basis. All Leave
encashment dues for the year are settled with in the same year.
Gratuity being administered by a trust is computed as 15 days salary,
fpr every completed year of service or part there of in excess of 6
months and is payble on retirement/resignation. The benefit vests on
the employee completing 5 years of services. The Gratuity plan nStthe
company is a defined benefit scheme where anfjlal contributions as
demanded by the insurer are deposited to a Gratuity benefits.The Fund
established to provitt gratuity benefits. The Fund has taken a scheme
owisurance, whereby these contributions are transfers to the insurer.
11. Preliminary and Sharelssue Expenses
Preliminary and share issufiexpenses are amortized ovei a period often
years, rjibenture issue (on private placement basis) expenditifjp have
been accounted in the year of issue.
12. Taxation:
Provision for current tax is made in the accounts on the basis of
estimated tax liability as per applicable provisions of the Income
Tpt Act 1961 end considering assesment orders and decisions of the appellate
authorities in Company's cases.
13. Taxes on Income
Tax expenses comprise bap current tax and defered tax at the applicable
enacted/ substantively enacted rates. Current tax represents the
ajpkint of income tax payable in respect of me taxable income for the
reporting period. Deferred tax represents the effects of timing
differences belffjeen taxable income and accounting income for the
reporting period that originate in one period and are capable of
reversal in one or more subsequent periods. Current taxes are measured
at the current rate of tax in accordance with provisions of the
Income-tax Act, 1961. Oiiitenred Tax asserts and Liabilities are
measured using the tax rates and tax laws that have been enacted or
substantially enacted by the Balance sheet date.
14. NCDEX Transactions
The Company is mainly engaged in buying of Soya
bean oils and Soya De - Oiled Cakes and buying and selling of Traded
goods like wheat, Tour, Gram etc. The Company deals on National
Commodity and Derivatives Exchange Ltd (NCDEX) through broker. The net
gain or loss is accounted for in the books after the transaction is
squared up. Gain or loss is recognized in case of completed transaction
till the year end.
14. Contingent Liabilities
Contingent liabilities are disclosed after a careful evaluation of
facts and their legal aspects.
Mar 31, 2010
1. Basis of Preparation of Financial Statements
The financial statements are prepared on the historical cost convention
basis in accordance with the generally accepted accounting principles
and the Accounting Standards referred to in Section 211 (3C) of the
Companies Act.
2. VALUTATION OF INVENTORIES
(i) Raw material,
At cost or market value whichever is less. Cost is determined on FIFO
basis
(ii) Stores & Spares Consumables, packing material.
At average cost. For this purpose cost of stores, spares, consumables
and packing materials purchased in the last month of the accounting
year is considered. Cost includes all direct expenses for procuring the
material, transportation and storing.
(iii) Finished Goods
Cost of production or net realizable value whichever is less.
(iv) Traded goods
At cost or market value which ever is lower. Cost is determined on FIFO
basis.
3. Cash Flow Statement
The cash flow statement is prepared under indirect method as per the
Institute of Chartered Accountant of India guidelines.
4. Recognition of Income and Expenditure
Items of Income and Expenditure are recognized on accrual basis except
for the following which are being accounted for on cash basis since it
is not possible to ascertain the exact quantum with reasonable accuracy
:-
a. Capital Subsidy
b. Insurance Claims
c. Withheld payments on account of rebates, claims, bargain settlement
etc.
5. Fixed Assets and Capital Work in Progress
Fixed Assets and Work in Progress are accounted on historical cost
basis.
6. Indirect Expenses on Expansion
In respect of independent project, indirect expenses relating to the
project are accounted separately and shall be capitalized at the time
of commencement of commercial production. In respect of expansion
facilities which are carried concurrently with production facilities of
existing units, expenses on administration and supervision incurred on
expansion (the bifurcation of which between production and construction
activities could not be ascertained) are charged to revenue as the
total amount of such expenses is not considered material in the context
of expansion expenditure.
7. Depreciation
Depreciation on all fixed assets put to use is provided on straight
line method at rates specified in Schedule XIV to the Companies Act,
1956 on pro rata date basis, except for Refinery on which depreciation
on written down value method at the rate specified in Schedule XIV to
the Companies Act is adopted on pro rata date basis.
8. Impairment Loss
Impairment loss is provided to the extent the carrying amount of assets
exceeds their recoverable amounts. Recoverable amount is the higher of
an assets net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of the asset and from its disposal at the end of its
useful life. Net selling price is the amount obtainable from sale of
the asset in an arms length transaction between knowledgeable, willing
parties, less the costs of disposal. During the year there is no
impairment loss of any asset.
9. Foreign Exchange Transactions
Income on export receivable in foreign currency is accounted on the
basis of actual remittance as per advice of the bank. The amount
outstanding at the year end receivable in foreign currency, if any is
accounted at the prevailing exchange rate. Any exchange difference is
dealt in the Profit and Loss Account.
10. Borrowing Costs
Borrowing cost directly attributable to the acquisition or construction
of fixed assets is capitalized as part of the cost of the asset, up to
the date the asset is put to use. Other borrowing costs are charged to
the Profit and Loss Account in the year in which they are incurred.
11. Retirement Benefits.
Contribution to Provident Fund is accounted on accrual basis. All Leave
encashment dues for the year are settled with in the same year.
Gratuity being administered by a trust is computed as 15 days salary,
for every completed year of service or part thereof in excess of 6
months and is payable on retirement / termination/ resignation. The
benefit vests on the employee completing 5 years of service. The
Gratuity plan for the company is a defined benefit scheme where annual
contributions as demanded by the insurer are deposited to a Gratuity
Trust Fund established to provide gratuity benefits. The Fund has taken
a scheme of insurance, whereby these contributions are transferred to
the insurer.
12. Preliminary and Share Issue Expenses
Preliminary and share issue expenses are amortized over a period of ten
years. Debenture issue (on private placement basis) expenditure have
been accounted in the year of issue.
13. Taxation:
Provision for current tax is made in the accounts on the basis of
estimated tax liability as per applicable provisions of the Income Tax
Act 1961 and considering assessment orders and decisions of the
appellate authorities in Companys cases.
14. Taxes on Income
Tax expenses comprise both current tax, Fringe Benefit Tax and deferred
tax at the applicable enacted/ substantively enacted rates. Current tax
represents the amount of income tax payable in respect of the taxable
income for the reporting period. Deferred tax represents the effects of
timing differences between taxable income and accounting income for the
reporting period that originate in one period and are capable of
reversal in one or more subsequent periods. Current taxes and Fringe
Benefit tax are measured at the current rate of tax in accordance with
provisions of the Income tax Act, 1961. Deferred Tax assets and
Liabilities are measured using the tax rates and tax laws that have
been enacted or substantially enacted by the Balance sheet date.
15. Contingent Liabilities
Contingent liabilities are disclosed after a careful evaluation of
facts and their legal aspects.