SDF Industries Ltd. कंपली की लेखा नीति

Mar 31, 2014

1. Basis for preparation of financial statements:

The financial statements are prepared under the historical cost convention under accrual method of accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

2. Use of Estimates

The preparation of the financial statements are in conformity with Indian GAAP which requires that the management makes estimates and assumptions that affect the reported amounts of Assets & Liabilities and disclosure of contingent liabilities as at the date of financial statements and the reported amounts of revenue and expenses during the reported period. Although such estimates were on a reasonable and prudent basis taking into account all available information, actual results could differ from estimates and such differences are recognized in the year in which the results are ascertained.

3. Cash Flow Statement

Cash flow statement has been prepared in accordance with the AS-3 of Companies (Accounting Standards) Rules, 2006, using the indirect method to determine cash flow from operating activities.

4. Fixed Assets

a) Fixed Assets are stated at historical cost less accumulated depreciation and impairment losses are recognized wherever necessary. Additional cost relating to the acquisition and installation of fixed assets are capitalized.

b) Capital-work-in progress comprises of advances paid to acquire fixed assets and amounts expended on development/acquisition of Fixed Assets that are not yet ready for their intended use at the Balance Sheet Date. Expenditure during construction period incurred on projects under implementation is treated as pre-operative expenses, pending allocation to assets and is included under capital-work-in progress.

c) 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.

5. Depreciation

a) Depreciation is provided on pro rata basis to the period of use, on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act 1956.

b) Assets subject to impairment are written off based on the asset''s revised carrying amount, over its remaining useful life.

6. Valuation of Inventories

Inventories are valued at lower of cost and realizable value; cost being ascertained on the following basis:

- Stores, spares, consumables, raw materials and components: First in first out method.

- Finished goods: Cost of input plus appropriate overhead.

- Work in progress: Cost of input plus overheads up to the stage of completion.

Damaged, un-saleable and non-moving items of stocks have been suitably depreciated.

7. Revenue Recognition

Revenue from sale of products is recognized on dispatch of goods in accordance with the terms and conditions of sale. Revenue from bottling is recognized in accordance with the specific terms of the contract on performance.

8. Foreign Currency Transactions

Foreign currency transactions are accounted at the exchange rate prevailing on the date of transactions. Monetary assets and liabilities denominated in foreign currency are reported at the exchange rate prevailing on the Balance Sheet date. The resultant net gain or loss on account of exchange rate differences arising on settlement of foreign currency transactions are adjusted to the Statement of Profit and Loss.

9. Borrowing Cost

Borrowing cost that is directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to get ready for its intended use is capitalized. Other borrowing costs are recognized as expenditure for the period in which they are incurred.

10. Earnings per Share

In determining the earnings per share, the Company considers the Net Profit after Tax. The number of shares used in computing the earnings per share is the weighted average number of shares outstanding during the period. For computing the diluted earnings per share, potential equity is added to the above weighted average number of shares.

11. Employee Benefits

a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and recognized in the period in which the employee renders the related service.

b) Defined Contribution Plans

The Company has defined contribution plans for employees comprising of Provident Fund. The contributions paid/payable to these plans during the year are charged to profit and loss account for the year.

c) Defined Benefit Plans-Gratuity

The net present value of the obligation for gratuity as determined on independent actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past services cost, if any, is recognized in the accounts. Actuarial gain and losses are recognized in full in the Profit & Loss Account for the period in which they occur.

d) Long Term Employee Benefits

The Company has a scheme for compensated absences for employees, the liability of which is determined on the basis of an independent actuarial valuation carried out at the end of the year, using the projected unit credit method. Actuarial gains and losses are recognized in full in the Profit and Loss Account for the period in which they occur.

12. Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized on timing differences, representing the difference between taxable incomes and accounting income that originates in the past and is capable of being reversed in one or more subsequent periods. The deferred tax assets are not recognized on unabsorbed depreciation or carried forward loss unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

13. Impairment

The carrying amounts of assets are reviewed at each balance sheet date to ascertain if there is any indication of impairment based on internal/external factors. An asset is treated as impaired based on the cash generating concept at the year end, when the carrying cost of the assets exceeds its recoverable value in terms of AS-28 of Companies (Accounting Standards) Rules, 2006 "Impairment of Assets", for the purpose of arriving at impairment loss thereon, if any. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

14. Provisions, Contingent Liabilities and Contingent Assets

Provisions for the loss and contingencies arising as a result of a past event, where the management considers it possible that a liability may be incurred which result in outflow of resources in future, are made on the basis of the best reliable estimates of the expenditure required to settle the present obligation on the balance sheet date and are not discounted to its present value. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are not provided for unless a reliable estimate of probable outflow to the company exists as at the Balance Sheet date. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2013

1. Basis for preparation of financial statements:

The financial statements are prepared under the historical cost convention under accrual method of accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

2. Use of Estimates

The preparation of the financial statements are in conformity with Indian GAAP which requires that the management makes estimates and assumptions that affect the reported amounts of Assets & Liabilities and disclosure of contingent liabilities as at the date of financial statements and the reported amounts of revenue and expenses during the reported period. Although such estimates were on a reasonable and prudent basis taking into account all available information, actual results could differ from estimates and such differences are recognized in the year in which the results are ascertained.

3. Cash Flow Statement

Cash flow statement has been prepared in accordance with the AS-3 of Companies (Accounting Standards) Rules, 2006, using the indirect method to determine cash flow from operating activities.

4. Fixed Assets

a) Fixed Assets are stated at historical cost less accumulated depreciation and impairment losses are recognized wherever necessary. Additional cost relating to the acquisition and installation of fixed assets are capitalized.

b) Capital-work-in progress comprises of advances paid to acquire fixed assets and amounts expended on development/acquisition of Fixed Assets that are not yet ready for their intended use at the Balance Sheet Date. Expenditure during construction period incurred on projects under implementation is treated as pre-operative expenses, pending allocation to assets and is included under capital-work-in progress.

c) 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.

5. Depreciation

a) Depreciation is provided on pro rata basis to the period of use, on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act 1956.

b) Assets subject to impairment are written off based on the asset''s revised carrying amount, over its remaining useful life.

6. Valuation of Inventories

Inventories are valued at lower of cost and realizable value; cost being ascertained on the following basis:

- Stores, spares, consumables, raw materials and components: First in first out method.

- Finished goods: Cost of input plus appropriate overhead.

- Work in progress: Cost of input plus overheads up to the stage of completion. Damaged, un-saleable and non-moving items of stocks have been suitably depreciated.

7. Revenue Recognition

Revenue from sale of products is recognized on dispatch of goods in accordance with the terms and conditions of sale. Revenue from bottling is recognized in accordance with the specific terms of the contract on performance.

8. Foreign Currency Transactions

Foreign currency transactions are accounted at the exchange rate prevailing on the date of transactions. Monetary assets and liabilities denominated in foreign currency are reported at the exchange rate prevailing on the Balance Sheet date. The resultant net gain or loss on account of exchange rate differences arising on settlement of foreign currency transactions are adjusted to the Statement of Profit and Loss.

9. BorrowingCost ,

Borrowing cost that is directly attributable to the acquisition, construction or production of an asset that takes a I substantial period of time to get ready for its intended use is capitalized. Other borrowing costs are recognized as expenditure for the period in which they are incurred.

10. Earnings per Share

In determining the earnings per share, the Company considers the Net Profit after Tax. The number of shares used in computing the earnings per share is the weighted average number of shares outstanding during the period. For " computing the diluted earnings per share, potential equity is added to the above weighted average number of shares.

11. Employee Benefits

a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and recognized in the period in which the employee renders the related service.

b) Defined Contribution Plans

The Company has defined contribution plans for employees comprising of Provident Fund. The contributions paid/payable to these plans during the year are charged to profit and loss account for the year.

c) Defined Benefit Plans-Gratuity

The net present value of the obligation for gratuity as determined on independent actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past services cost, if any, is recognized in the accounts. Actuarial gain and losses are recognized in full in the Profit & Loss Account for the period in which they occur.

d) Long Term Employee Benefits

The Company has a scheme for compensated absences for employees, the liability of which is determined on the basis of an independent actuarial valuation carried out at the end of the year, using the projected unit credit method. Actuarial gains and losses are recognized in full in the Profit and Loss Account for the period in which they occur.

12. Taxes on income

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized on timing differences, representing the difference between taxable incomes and accounting income that originates in the past and is capable of being reversed in one or more subsequent periods. The deferred tax assets are not recognized on unabsorbed depreciation or carried forward loss unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

13. Impairment

The carrying amounts of assets are reviewed at each balance sheet date to ascertain if there is any indication of impairment based on internal/external factors. An asset is treated as impaired based on the cash generating concept at the year end, when the carrying cost of the assets exceeds its recoverable value in terms of AS-28 of Companies (Accounting Standards) Rules. 2006 "Impairment of Assets", for the purpose of arriving at impairment loss thereon, if any. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

14. Provisions, Contingent Liabilities and Contingent Assets

Provisions for the loss and contingencies arising as a result of a past event, where the management considers it possible that a liability may be incurred which result in outflow of resources in future, are made on the basis of the best reliable estimates of the expenditure required to settle the present obligation on the balance sheet date and are not discounted to its present value. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are not provided for unless a reliable estimate of probable outflow to the company exists as at the Balance Sheet date. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2011

1. Basis for preparation of financial statements:

The financial statements are prepared under historical cost convention in accordance with the Companies Act, 1956 and the Companies (Accounting Standards) Rules, 2006 (Indian GAAP) as adopted consistently by the company. All income and expenditure having material bearing on the financial statements are recognized on accrual basis.

2. Use of Estimates

The preparation of financial statements is in conformity with Indian GAAP which require management to make estimates and assumptions that affect the reported amounts of revenue and expenditure of the period, assets and liabilities and disclosures relating to contingent liabilities as on the date of the financial statements. Although such estimates are based on a reasonable and prudent basis taking in to account all available information, actual results could differ from these estimates and such differences are recognized in the period in which the results are ascertained.

3. Fixed Assets & depreciation

(a) All fixed assets have been stated at their historical cost less accumulated depreciation / impairment loss. All costs relating to acquisition including freight and installation charges are capitalized.

(b) Depreciation is provided on a pro rata to the period of use , on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act; 1956. Depreciation on all assets costing less than Rs. 5000 are provided at 100%.

4. Valuation of Inventories

Inventories are valued at lower of cost and realizable value; cost being ascertained on the following basis:

- Stores, spares, consumables, raw materials and components: First in first out method.

- Finished goods: Cost of input plus appropriate overhead.

- Work in progress: Cost of input plus overheads up to the stage of completion. Damaged, un saleable and non moving items of stocks have been suitably depreciated.

5. Revenue Recognition

Revenue from sale of products is recognized on dispatch of goods in accordance with the terms of sale Revenue from bottling is recognized in accordance with the specific terms of the contract on performance.

6. Foreign Currency Transactions

Monetary assets and liabilities denominated in foreign currency are restated at the exchange rates prevailing as at the Balance sheet date and gain or loss arising from such restatements is adjusted in the profit and loss account.

7. Borrowing Cost

Borrowing costs other than that attributable to the qualifying asset are expensed as and when incurred.

8. Taxes on Income

Tax expenses comprising of current tax & deferred tax. Provision for current taxation is made on the basis of assessable profits computed in accordance with the provisions of the Income tax act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deterred tax assets are recognized on unabsorbed depreciation and carry forward of losses based on virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

9. Employee Benefits

a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and recognized in the period in which the employee renders the related service.

b) Defined Contribution Plans

The Company has defined contribution plans for employees comprising of Provident Fund. The contributions paid/payable to these plans during the year are charged to profit and loss account for the year.

c) Defined Benefit Plans-Gratuity

The net present value of the obligation for gratuity as determined on independent actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past services cost, if any, is recognized in the accounts. Actuarial gain and losses are recognized in full in the Profit & Loss Account for the period in which they occur.

d) Long Term Employee Benefits

The Company has a scheme for compensated absences for employees, the liability of which is determined on the basis of an independent actuarial valuation carried out at the end of the year, using the projected unit credit method. Actuarial gains and losses are recognized in full in the Profit and Loss Account for the period in which they occur.

10. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceed its recoverable value. An impairment loss is charged for when 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.

11. Provisions, Contingent Liabilities and Contingent Assets

Provisions requiring 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 on Accounts. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

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Mar 31, 2010

1. Basis for preparation of financial statements:

The financial statements are prepared under historical cost convention in accordance with the Companies Act, 1956 and the Companies (Accounting Standards) Rules, 2006 (Indian GAAP) as adopted consistently by the company. All income and expenditure having material bearing on the financial statements are recognized on accrual basis.

2. Use of Estimates

The preparation of the financial statements is in conformity with Indian GAAP which require management to make estimates and assumptions that affect the reported amounts of Assets & Liabilities and disclosure of contingent liabilities on the date of financial statements and reported amounts of revenue & expenditure during the reported period. Although such estimates were based on a reasonable and prudent basis taking in to account all available information, actual results could differ from these estimates and such differences are recognized in the period in which the results are ascertained.

3. Fixed Assets & depreciation

(a) All fixed assets have been stated at their historical cost less accumulated depreciation / impairment loss. All costs relating to acquisition including freight and installation charges are capitalized.

(b) Depreciation is provided on a pro rata to the period of use, on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on all assets costing less than Rs. 5000 are provided at 100%.

4. Valuation of Inventories

Inventories are valued at lower of cost and realizable value; cost being ascertained on the following basis:

- Stores, spares, consumables, raw materials and components: First in first out method.

- Finished goods: Cost of input plus appropriate overhead.

- Work in progress: Cost of input plus overheads up to the stage of completion. Damaged, un saleable and non moving items of stocks have been suitably depreciated.

5. Revenue Recognition

Revenue from sale of products is recognized on despatch of goods in accordance with the terms of sale. Revenue from bottling is recognised in accordance with the specific terms of the contract on performance.

6. Foreign Currency Transactions

Monitory assets and liabilities denominated in foreign currency are restated at the exchange rates prevailing as at the Balance sheet date and gain or loss arising from such restatements is adjusted in the profit and loss account.

7. Borrowing Cost

Borrowing costs other than that attributable to the qualifying asset are expensed as and when incurred.

8. Taxes on Income

Tax expenses comprising of current tax, deferred tax and fringe benefit tax.

Provision for current taxation is made on the basis of assessable profits computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized on unabsorbed depreciation and carry forward of losses are recognised based on virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

9. Employee Benefits

a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and recognized in the period in which the employee renders the related service.

b) Defined Contribution Plans

The Company has defined contribution plans for employees comprising of Provident Fund. The contributions paid/payable to these plans during the year are charged to profit and loss account for the year.

c) Defined Benefit Plans-Gratuity

The net present value of the obligation for gratuity as determined on independent actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past services cost, if any, is recognized in the accounts. Actuarial gain and losses are recognized in full in the Profit & Loss Account for the period in which they occur.

d) Long Term Employee Benefits

The Company has a scheme for compensated absences for employees, the liability of which is determined on the basis of an independent actuarial valuation carried out at the end of the year, using the projected unit credit method. Actuarial gains and losses are recognized in full in the Profit and Loss Account for the period in which they occur.

10. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceed its recoverable value. An impairment loss is charged for when 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.

11. Provisions, Contingent Liabilities and Contingent Assets

Provisions requiring 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 on Accounts. Contingent Assets are neither recognised nor disclosed in the Financial Statements.