SENSEX NIFTY India | Accounting Policy > Edible Oils & Solvent Extraction > Accounting Policy followed by Sarda Proteins - BSE: 519242, NSE: N.A
Sarda Proteins
BSE: 519242|SECTOR: Edible Oils & Solvent Extraction
Sarda Proteins is not traded in the last 30 days
Sarda Proteins is not listed on NSE
« Mar 12
Accounting Policy Year : Mar '13
 The financial statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006 and the relevant provisions of the
 Companies Act, 1956. The financial statements have been prepared under
 the historical cost convention on an accrual basis except as stated
 otherwise. The accounting policies have been consistently applied by
 the Company and are consistent with those used in the previous year.  
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates. Difference between the actual result and
 estimates are recognised in the period in which the results are known /
 i.  Fixed Assets are stated at historical cost less depreciation. The
 cost comprises directly attributable costs such as j freight, insurance
 and specific installation charges for bringing the assets to their
 working condition for intended use.  Intangible Assets are recognized
 on the basis of recognition criteria as set out in Accounting Standard
 26 Intangible Assets.
 Depreciation is provided on the basis of Straight Line Method as per
 the rates and in the manner prescribed in Schedule XIV of the Companies
 Act, 1956.
 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.  Hi.  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.
 i.  Revenue is recognized on mercantile basis except for
 claims/insurance claims, which are accounted for on I ascertainment
 basis in view of uncertainty involved in determining the final amount.
 ii.  Interest income on fixed deposit with bank is recognized on time
 proportion basis taking into account the amount outstanding and the
 rate applicable.  iii.  Dividend income from investments is recognized
 when the Company''s right to receive payment is established.  G
 SUBSIDIES !  State subsidies are accounted for on receipt basis.
 Provision for Gratuity in the nature of defined benefit obligation is
 considered on the basis of revised Accounting Standard -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 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.
 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.
 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 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.  K.  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.  L.
 The Company''s reporting segments are identified based on
 activities/products, risk and reward structure, organization structure
 and internal reporting systems.  M. 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.  N. 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
 Provisions are recognized for liabilities that can be measured by using
 a substantial degree of estimation, if
 i.  the Company has a present obligation as a result of a past event,
 ii.  a probable outflow of resources is expected to settle the
 obligation and
 iii.  the amount of the obligation can be reliably estimated.
 Contingent Liability is disclosed in the case of i.  a present
 obligation arising from the past event, when it is not probable that an
 utflow of resources will be required to settle the obligation.  ii.  a
 possible obligation, unless the probability of outflow of resources is
 remote. Contingent Assets are neither recognized nor disclosed.
 Provisions, Contingent liabilities and Contingent assets are reviewed
 at each Balance Sheet date.  P. 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.
Source : Dion Global Solutions Limited
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