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Sarda Proteins

BSE: 519242|SECTOR: Edible Oils & Solvent Extraction
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Sarda Proteins is not traded in the last 30 days
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« Mar 14
Accounting Policy Year : Mar '15
A.  BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 These financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on the accrual basis except for certain financial
 instruments which are measured at fair values. GAAP comprises mandatory
 accounting standards as prescribed under Section 133 of the Companies
 Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules,
 2014, the provisions of the Act (to the extent notified) and guidelines
 issued by the Securities and Exchange Board of India (SEBI). 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.
 
 B.  USE OF ESTIMATES
 
 The preparation of the financial statements in conformity with GAAP
 requires management 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.
 
 Accounting estimates could change from period to period. Actual results
 could differ from those estimates.  Appropriate changes in estimates
 are made as the Management becomes aware of changes in circumstances
 surrounding the estimates. Changes in estimates are reflected in the
 financial statements in the period in which changes are made and, if
 material, their effects are disclosed in the notes to the financial
 statements.
 
 C.  FIXED ASSETS
 
 i.  Fixed Assets are stated at historical cost less
 
 depreciation. The cost comprises directly attributable costs such as
 freight, insurance and specific installation charges for bringing the
 assets to their working condition for intended use.
 
 ii.  Intangible Assets are recognized on the basis of recognition
 criteria as set out in Accounting Standard AS- 26 Intangible Assets.
 
 D.  DEPRECIATION
 
 Depreciation is provided on the basis of Straight Line Method as per
 the rates and in the manner prescribed in Schedule II of the Companies
 Act, 2013.
 
 E.  INVENTORIES
 
 i.  Finished Goods are valued at cost or net realizable value whichever
 is lower.
 
 ii.  Raw materials are valued at lower of cost or net realizable value
 (NRV).
 
 iii.  By products are valued at estimated realizable price.
 
 iv.  Stores and Spare parts are valued at/or under cost.
 
 Cost for the purpose of inventory valuation is computed on FIFO (First
 In First Out) basis.
 
 F.  REVENUE RECOGINTION
 
 Revenue is recognized on mercantile basis except for claims/insurance
 claims, which are accounted for on ascertainment basis in view of
 uncertainty involved in determining the final amount.
 
 Interest income on fixed deposit with bank is recognized on time
 proportion basis taking into account the amount outstanding and the
 rate applicable.
 
 Dividend income from investments is recognized when the Company''s right
 to receive payment is established.
 
 G.  CASH AND CASH EQUIVALENTS
 
 Cash and cash equivalents comprise cash at bank and in hand and short
 term investments with an original maturity of three months or less.
 
 H.  SUBSIDIES
 
 State subsidies are accounted for on receipt basis.
 
 I.  RETIREMENT BENEFITS
 
 I.  GRATUITY
 
 Provision for Gratuity in the nature of defined benefit obligation is
 considered on the basis of revised Accounting Standard (AS-15) on
 actuarial valuation. The discount rate and other actuarial assumptions
 are based on the parameters defined in the Accounting Standard.
 
 ii.  PROVIDENT FUND
 
 Company''s contribution to the Provident Fund in the nature of Defined
 Contribution Plan is being charged to Statement of Profit & Loss
 Account in the year in which services are rendered by the employees.
 
 iii.  LEAVE ENCASHMENT
 
 Short term benefits are provided for on accrual basis on the basis of
 management estimates.
 
 J.  TAXES ON INCOME
 
 Income tax expense is accounted for in accordance with AS-22,
 Accounting for Taxes on Income, as stated below:
 
 
 i.  Provision for current tax is made based on taxable income
 
 for the year computed in accordance with provisions of the Income Tax
 Act, 1961.
 
 ii.  Deferred tax is recognized, subject to the consideration of
 prudence, on timing differences, being the difference between taxable
 income and accounting income that originate in one period and are
 capable of reversal in one or more subsequent periods.
 
 iii. Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax
 liabilities relate to the taxes on income levied by same governing
 taxation laws.
 
 iv.  Deferred tax asset is recognized and carried forward to the extent
 that there is a reasonable certainty of realization. In the case of
 unabsorbed depreciation and carry forward tax losses deferred tax asset
 is recognized, to the extent there is virtual certainty that sufficient
 future taxable income will be available against which such deferred tax
 assets can be realized.
 
 K.  IMPAIRMENT OF ASSETS
 
 Impairment loss is recognized wherever the carrying amount of an asset
 is in excess of its recoverable amount and the same is recognized as an
 expense in the statement of profit and loss account and carrying amount
 of the asset is reduced to its recoverable amount. Post impairment,
 depreciation is provided on the revised carrying value of the asset
 over its remaining useful life.  Reversal of impairment losses
 recognized in prior years is recorded when there is an indication that
 the impairment losses recognized for the asset no longer exist or have
 decreased.
 
 L.  PROVISIONS, CONTINGENT LIABILITIES AND
 
 CONTINGENT ASSETS
 
 A provision is recognized if, as a result of a past event, the Company
 has a present legal obligation that is reasonably estimable and it is
 probable that an outflow of economic benefits will be required to
 settle the obligation. Provisions are determined by the best estimate
 of the outflow of economic benefits required to settle the obligation
 at the reporting date. Where no reliable estimate can be made, a
 disclosure is made as contingent liability. A disclosure for a
 contingent liability is also made when there is a possible obligation
 or a present obligation that may, but probably will not, require an
 outflow of resources. Where there is a possible obligation or a present
 obligation in respect of which the likelihood of outflow of resources
 is remote, no provision or disclosure is made.
 
 M.  EARNINGS 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 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 are
 adjusted for the effects of all dilutive potential equity shares.
 
 N.  SEGMENT POLICIES
 
 The Company''s reporting segments are identified based on
 activities/products, risk and reward structure, organization structure
 and internal reporting systems.
 
 O.  INVESTMENTS
 
 Investments intended to be held for more than a year are classified as
 long term investments. All other investments are classified as current
 investments.  Current investments are stated at lower of cost and
 market/fair value. Long term investments are stated at cost. Decline in
 value of long term investments is recognized, if considered other than
 temporary.
 
 P.  BORROWING COSTS
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur. Borrowing costs consist of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.
 
 Q.  CASH FLOW STATEMENT
 
 Cash flows are reported using the indirect method, whereby profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature, any deferrals or accruals of past or future operating cash
 receipts or payments and item of income or expenses associated with
 investing or financing cash flows. The cash flows from operating,
 investing and financing activities of the Company are segregated.
Source : Dion Global Solutions Limited
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