Bharatpur Nutritional Products Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Expenses and Income considered payable and receivable respectively are accounted for on accrual basis. However where the ability to ascertain the ultimate collection with reasonable certainty is lacking at the time of 'raising any claim, revenue recognition is postponed to the extent of uncertainty involved.

INVENTORIES

Inventories are valued at lower of cost and net realizable value. The cost of Raw Material is computed on weighted average basis. Finished goods and processed stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

TRANSACTIONS OF FOREIGN CURRENCY ITEMS

Transactions arising in foreign currency are converted at rates prevailing on the date of transaction. Outstanding foreign currency transactions in respect of current assets / liabilities are translated in rupees by applying exchange rate at the close of the year and the exchange difference is adjusted in the profit and loss account.

INVESTMENTS

Long Term Investments are stated at cost. Whey there is a decline other than temporary in their value the carrying amount is reduced on an individual investment basis and decline is charged to Profit & Loss Account. Appropriate adjustment is made in carrying cost of Investments in case of subsequent rise in value of Investments. The Current Investments are stated at lower of Cost or Fair Value on global basis.

FIXED ASSETS

Fixed assets are stated at their original cost adjusted by revaluation of certain buildings and majority of plant and machinery.

DEPRECIATION AND AMORTISATION

Depreciation on Plant & Machinery acquired on or after 1st October, 1982 is provided on straight line method and on all other assets on written down value method, at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956. Continuous process plant as defined therein has been taken on technical assessment.

On revalued portion of fixed assets, depreciation is provided on straight-line method on the basis of residual life as estimated by the valuer.

INTANGIBLE ASSETS

Intangible Assets against which a benefit is expected to flow in to future period, Such assets are amortized over the expected duration of benefit.

TREATMENT OF EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period is being included under capital work-in-progress and the same is allocated to the respective fixed assets on completion of the construction period.

RETIREMENT BENEFITS

Gratuity and Leave Encashment are accounted for on cash basis and contribution to Superannuation is funded on accrual basis.

RESEARCH AND DEVELOPMENT EXPENDITURE

Revenue expenditure on research and development is charged in the Profit & Loss Account of the year in which it is incurred.

DISCOUNT/ PREMIUM ON ISSUE OF SHARES/ DEBENTURES

Expenses on issue of shares and expenses and discount/ premium on issue of debentures are charged to share premium account.

BORROWING COST

Interest and other costs incurred in connection with borrowing of funds are capitalized upto the date when such qualifying assets are ready for its intended use and other borrowing costs are charged to profit and loss account.

TAXES ON INCOME

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 may be reversed in one or more subsequent periods. Deferred tax assets arising on account of brought forward losses, unabsorbed depreciation and other temporary timing differences are recognized only if there is a reasonable certainty of realization.