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Goodricke Group
BSE: 500166|NSE: GOODRICKE|ISIN: INE300A01016|SECTOR: Plantations - Tea & Coffee
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Goodricke Group is not traded in the last 30 days
« Dec 13
Accounting Policy Year : Dec '14
1.1 CONVENTION
 
 The financial statements have been prepared to comply in all material
 aspects with all the applicable accounting principles in India, the
 applicable accounting standards, notified u/s 211(3C) of the Companies
 Act, 1956 [Companies (Accounting Standards) Rules, 2006, as ammended]
 and the relevant provisions of the Companies Act, 1956 and/or the
 notified sections of Companies Act, 2013, to the extent applicable. A
 summary of important accounting policies which have been applied
 consistently, are set out below. Financial Statements have also been
 prepared in accordance with relevant presentational requirements of the
 Companies Act, 1956 of India.
 
 1.2 BASIS OF ACCOUNTING
 
 The financial statements have been prepared in accordance with the
 historical cost convention and on accrual basis.  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 the
 Schedule VI to the Companies Act 1956. The Company has ascertained its
 operating cycle as twelve months for the purpose of current and non
 current classification of assets and liabilities.
 
 1.3 FIXED ASSETS
 
 1.3.1 TANGIBLE
 
 Fixed assets are stated at cost of acquisition together with any
 incidental expenses of acquisition.
 
 Depreciation on fixed assets other than Livestock and Estate &
 Development has been provided on Written Down value method in
 accordance with Schedule XIV of the Companies Act, 1956. Estate &
 Development is not depreciated. Livestock is expensed over its useful
 life.
 
 All expenditure incurred for extension of new areas of cultivation are
 capitalised. However, cost of upkeep and maintenance and cost of
 replanting in existing areas are charged to revenue.
 
 Subsidies from Government in respect of fixed assets are deducted from
 the cost of respective assets.
 
 Profit or Loss on disposal of Fixed Assets is recognised in the
 Statement of Profit and Loss.
 
 1.3.2 INTANGIBLE
 
 Cost of software is capitalised where it is expected to provide future
 enduring economic benefits. Capitalisation costs include licence fees
 and cost of implementation / system integration services. The costs are
 capitalised in the year in which the relevant software is implemented
 for use. Expenses incurred on upgradation / enhancements is charged off
 as revenue expenditure unless they bring similar significant additional
 benefits.
 
 Capitalised software costs is amortised on a straight line basis over a
 period of five years.
 
 1.3.3 IMPAIRMENT OF FIXED ASSETS
 
 An impairment loss is recognised where applicable, when the carrying
 value of the fixed assets of a cash generating unit exceeds its net
 selling price or value in use, whichever is higher.
 
 1.4 INVESTMENTS
 
 Long Term Investments are stated at cost and where applicable,
 provision is made in case of other than temporary diminution in value
 of investments.Current investments are stated at lower of cost or fair
 value.
 
 1.5 INVENTORIES
 
 Inventories are valued at lower of cost and net realisable value. Cost
 is determined on weighted average basis. Cost comprises expenditure
 incurred in the normal course of business in bringing such inventories
 to their location and condition and includes appropriate overheads.
 Provision is made for obsolete and slow moving stocks where necessary.
 
 1.6 RESEARCH AND DEVELOPMENT
 
 Research and Development Expenditure of revenue nature is charged to
 the Statement of Profit and Loss and capital expenditure is treated as
 fixed assets.
 
 1.7 RETIREMENT BENEFITS
 
 The Company operates defined contribution schemes like Provident Fund
 and defined Contribution Pension Schemes.
 
 The Company makes regular contribution to provident funds which are
 fully funded and administered by Government and are independent of
 Company''s finance. Contributions are recognized in Statement of
 Profit and Loss on an accrual basis. The Company operates a non
 contributory defined contribution pension scheme for certain employees.
 The Company contributes 15% of the employees'' current salary to the
 above contribution fund which is recognised in the Statement of Profit
 and Loss.
 
 The Company also operates defined benefit Provident Fund Schemes for
 certain employees which are fully funded and administered by trustees
 and are independent of the Company''s finance .The Company makes
 regular contributions to the fund and shortfall if any,determined by
 annual actuarial valuation, is recognized in the Statement of Profit
 and Loss.
 
 Defined Benefit Gratuity Plan is maintained by the company for all its
 eligible employees. The Company also operates a Non Contributory
 Defined Benefit Pension Scheme for certain employees. The Company
 contributes to such funds on the basis of actuarial valuation at the
 end of each year after setting off any net asset in respect of either
 fund. Both the Pension Fund and gratuity fund are administered by the
 Trustees and is independent of the Company''s finance.
 
 For Schemes where recognized funds have been set up annual
 contributions determined as payable in the actuarial valuation report
 are contributed. Actuarial gains & losses are recognized in the
 Statement of Profit and Loss. The Company recognizes in the Statement
 of Profit and Loss gains or losses on curtailment or settlement of a
 defined benefit plan as and when the curtailment or settlement occurs.
 
 Post retirement medical benefits are provided by the Company for
 certain category of employees. Liability is determined through
 independent year end actuarial valuation and is recognized in the
 Statement of Profit and Loss.  Provision is made for retirement leave
 encashment benefit payable to employees on the basis of independent
 actuarial valuation, at the end of each year and charge is recognized
 in the Statement of Profit and Loss.
 
 1.8 SALES
 
 Sales represent the invoiced value of goods supplied less Sales Tax /
 Value Added Tax.
 
 1.9 INCOME FROM INVESTMENTS
 
 Income from investments is included together with the related tax
 credit in the Statement of Profit and Loss.
 
 1.10 REPLANTING AND OTHER SUBSIDIES
 
 Replanting and other subsidies of revenue nature are recognised as
 income in the Statement of Profit and Loss.
 
 1.11 FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in foreign currencies are recorded in rupees by applying
 the exchange rate prevailing on the date of transaction. Transactions
 remaining unsettled are translated at the rate of exchange ruling at
 the end of the year.  Exchange gain or loss arising on
 settlement/translation is recognised in the Statement of Profit and
 Loss.
 
 Premium or discount on forward contracts are amortised as expense or
 income over the life of the contract. Foreign exchange forward
 contracts are revalued at the balance sheet date and the exchange
 difference is recognised as gain/loss in the Statement of Profit and
 Loss. Profit or Loss on cancellations/renewals of forward contracts is
 recognised in the Statement of Profit and Loss.
 
 1.12 TAXES ON INCOME
 
 Current tax represents the amount computed as per prevailing taxation
 laws under the Income Tax Act, 1961.  Deferred Tax is recognized,
 subject to the consideration of prudence, on timing differences, being
 the difference between taxable incomes and accounting income that
 originate in one period and are capable of reversal in one or more
 subsequent periods. Deferred Tax assets have been recognized where
 there is reasonable certainty that sufficient future taxable income
 will be available against which such deferred tax assets can be
 realized.
 
 1.13 BORROWING COSTS
 
 Borrowing cost attributable to acquisition and/or construction of
 qualifying assets are capitalised as a part of the cost of such assets
 up to the date when such assets are ready for intended use. Other
 borrowing costs are charged to Statement of Profit and Loss.
 
 1.14 LEASES
 
 Lease Payments under the Operating Lease are recognised as an expense
 in the Statement of Profit and Loss, on a systematic basis.
 
 1.15 PROVISIONS AND CONTINGENT LIABILITIES
 
 Provisions are recognised when there is a present obligation as a
 result of a past event, it is probable that an outflow of resources
 embodying economic benefits will be required to settle the obligation
 and there is a reliable estimate of the amount of the obligation.
 Provisions are measured at the best estimate of the expenditure
 required to settle the present obligation at the Balance sheet date and
 are not discounted to its present value.
 
 Contingent liabilities are disclosed when there is a possible
 obligation arising from past events, the existence of which will be
 confirmed only by the occurrence or non occurrence of one or more
 uncertain future events not wholly within the control of the company or
 a present obligation that arises from past events where it is either
 not probable that an outflow of resources will be required to settle or
 a reliable estimate of the amount cannot be made, is termed as a
 contingent liability.
 
 1.16 USE OF ESTIMATES
 
 The preparation of financial statements is in conformity with Indian
 GAAP requires the management to make judgements, estimates and
 assumptions that effect the reported amounts of revenues, expenses,
 assets and liabilities and the disclosure of contingent liabilities, at
 the end of the reporting period. Although these estimates are based on
 the management''s best knowledge of current events and actions,
 uncertainty about these assumptions and estimates could result in the
 outcomes requiring a material adjustment to the carrying amounts of
 assets or liabilities in the future periods. Any revision to accounting
 estimates is recognised prospectively in the current and future
 periods.
 
 1.17 EARNING PER SHARE
 
 Basic earnings per share is 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. The
 weighted average number of equity shares outstanding during the period
 and for all periods presented is adjusted for events, such as bonus
 shares, other than the conversion of potential equity shares, that have
 changed the number of equity shares outstanding, without a
 corresponding change in resources. For the purpose of calculating
 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 is adjusted for the effects of all
 dilutive potential equity shares.
 
Source : Dion Global Solutions Limited
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