Riverdale Foods Ltd. कंपली की लेखा नीति

Mar 31, 2012

A) Basis of preparation of Financial Statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India ("GAAP") under the historical cost convention on accrual basis, on a going concern basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211 (3C) [Companies (Accounting Standards) Rules, 2006, as amended], and the other relevant provisions of the Companies Act, 1956.

During the year ended March 31,2012, the revised Schedule VI, notified under the Companies Act, 1956, became applicable to the Company, for preparation and presentation of its financial statements. The Company has reclassified previous year figures to conform to this year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of financial statements.

The Company's accumulated losses as on March 31, 2012 amounted to Rs. 66,142,978 (Previous Year Rs.6,06,85,941)equated the paid up capital and non refundable share application money received from the strategic investor in terms of the sanctioned Rehabilitation Scheme aggregating to Rs.66,228,801 (Previous Year Rs 5,99,03,990). In accordance with the Rehabilitation Scheme, sanctioned by the Hon'ble BIFR. the Holding Company is committed to financially support the operations and the fund requirements of the Company for refurbishment of existing Plant and Machinery, the requisite Capital Expenditure and arrange for the necessary working capital fund requirement for the operations of the Company. The management is of the view that despite the erosion in the net worth, the Company will continue as a 'going concern' and be able to discharge its liabilities in the normal course of business.

b) Use of Estimates

The preparation of financial statements in conformity with the GAAP requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Although these estimates are based on the managements' best knowledge of current events and actions that the Company may undertake in future, the actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in future periods.

c) Tangible Assets and Depreciation

The tangible assets have been shown in the balance Sheet at the historical cost less accumulated depreciation, and impairment losses. Cost comprises purchase price and any directly attributable cost incurred in bringing the asset to its working condition for its intended use. The depreciation is provided on straight line basis at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation on the purchase of assets during the year has been provided on pro-rata basis according to the period each asset was put to use during the year.

d) Impairment of Assets

Consideration is given at each Balance Sheet to determine whether there is any indication of impairment of the carrying amount of the Company's tangible assets. If any indication exists, the recoverable value of assets is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount, the latter being greater of net selling price and value in use.

e) Cash and cash equivalents

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 period of three months or less.

f) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

g) Provisions, contingent liabilities and contingent assets

A provision is recognised for a present obligation as result of past events if it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance Sheet date. Reimbursements expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received. Contingent liabilities are disclosed in the notes in case of a present obligation arising from a past event when it is not probable than an outflow of resources will be required to settle the obligation. Contingent assets are neither recognised nor disclosed in the financial statements.

h) Earning per share

Basic earnings per share is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares except where the results would be anti-dilutive.

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Mar 31, 2011

A. Basis of preparation of Financial Statements

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, accrual basis of accounting, on going concern basis. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India, the provisions of Companies Act, 1956, and guidelines issued by the Securities Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use, or a change is necessitated, in the opinion of the management, in accordance with the nature of business of the Company and would result in a more appropriate presentation of the financial statements of the Company.

The management evaluates all updates on accounting standards on an ongoing basis.

b. Use of Estimates

The preparation of financial statements in conformity with the! generally accepted accounting principles requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Although these estimates are based on the managements' best knowledge of current events and actions that the Company may undertake in future, the actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c. Fixed Assets and Depreciation

The fixed assets have been shown in the Balance Sheet at the historical cost less accumulated depreciation, and impairment losses. Cost comprises purchase price and any directly attributable cost incurred in bringing the asset to its working condition for its intended use. The depreciation is provided on straight line basis at the rates specified in schedule XIV of the Companies Act, 1956. Depreciation on the acquisition/purchase of assets during the year has been provided on pro-rata basis according to the period each asset was out to use during the year.

d. Impairment of Assets.

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine: a) the provision for impairment loss, if any, required; or b) the reversal, if any, required of impairment loss recognised in previous periods.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined: a) in the case of an individual asset, at the higher of the net selling price and the value in use; b) in the case of a cash generating unit (a group of assets that generates identified independent cash flows) at the higher of the cash generating units' net selling price and the value in use. Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life.

e. Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

f. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised for a present obligation as result of past events if it is probable that an outflow of resources wili be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance Sheet date. Reimbursements expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received. Contingent liabilities are disclosed in the notes in case of a present obligation arising from a past event when it is not probable than an outflow of resources will be required to settle the obligation. Contingent assets are neither recognised nor disclosed in the financial statements. Contingent liabilities and contingent assets are reviewed at each balance sheet date.

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Mar 31, 2008

A. The accounts of the Company are prepared under the historical cost convention and in accordance with normally accepted accounting principles. Income and Expenditure are generally accounted on accrual basis except in case of uncertain, unforeseen, immaterial and insignificant transactions.

b. The fixed Assets have been shown in the balance Sheet at the historical cost less depreciation. The depreciation has been provided on straight line basis at the rates specified in schedule XIV of the Companies Act, 1956.

c. In the absence of any taxable income the provision for taxation is not required to be made as per the provisions of Income tax Act, 1961.

d. The preparation of the financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Although these estimates are based on the management's best knowledge of current events and actions that the Company may undertake in near future, the actual results could differ from those estimates. The financial implication of any change in the estimates is recognized prospectively in the current and future years.