Accounting Policies of Super Bakers (India) Ltd. Company

Mar 31, 2024

Note No. 1 Accounting Policies

1. Basis of preparation

i. Compliance with Ind AS

The financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as
amended and other relevant provisions of the Act.

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.

The Ind AS financial statements are presented in INR and all values are rounded-off to the nearest
lacs with 2 decimal places, except when otherwise indicated.

ii. Historical cost convention

The financial statements have been prepared on a historical cost basis.

iii. Use of estimates

In preparing the financial statements in conformity with accounting principles, management is
required to make estimates and assumptions that may affect the reported amounts of assets and
liabilities and the disclosure of contingent liabilities as at the date of financial statements and the
amounts of revenue and expenses during the reported period. Actual results could differ from
those estimates. Any revision to such estimates is recognised in the period thesame is determined.

2. Revenue recognition

Revenue is recognized at the fair value of the consideration received or receivable. The amount
disclosed as revenue is inclusive of excise duty and net of returns, trade discounts. The company
recognizes revenue when the amount of revenue can be measured reliably and it is probable that the
economic benefits associated with the transaction will flow to the entity.

Sale of products

Timing of recognition-

Revenue from sale of products is recognised when significant risks and rewards in respect of ownership
of products are transferred to customers based on the terms of sale.

Measurement of revenue-

Revenue from sales is based on the price specified in the sales contracts, net of all discounts and
returns at the time of sale.

Revenue from interest is recognized on accrual basis.

3. Property, plant and equipment

Tangible fixed assets are carried at cost of acquisition less accumulated depreciation. Thecost of
an item of tangible fixed asset comprises its purchase price, including import duties and others
non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition
for its intended use: any trade discounts and rebates are deducted in arriving at the purchase price.

Tangible fixed assets under construction are disclosed as capital work in progress.

Recognition:

The cost of an item of property, plant &equipment shall be recognized as an asset if, and only if:

(a) it is probable that future economic benefits associated with the item will flow to the entity; and

(b) the cost of the item can be measured reliably.

Gains or losses arising from de-recognition of fixed assets are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement
of profit and loss when the asset is derecognized.

The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.

4. Intangible assets

Intangible assets are stated at cost less accumulated amortisation and net of impairments, if any.
An intangible asset is recognized if it is probable that the expected future economic benefits that
are attributable to the asset will flow to the company and its cost can be measured reliably. Intangible
assets are amortised on straight line basis over their estimated useful lives.

5. Depreciation and amortization expenses

Depreciation on tangible fixed assets and amortisation of intangible fixed assets is provided on the

Depreciation on additions is provided on a pro-rata basis from the month of acquisition/installation.
Depreciation on sale/deduction from fixed assets is provided for upto the date of sale/adjustment,
as the case may be.

6. Income tax

Income tax expense represents the sum of current and deferred tax (including MAT). Current income-
tax is measured at the amount expected to be paid to the tax authorities in accordance with the
Income-tax Act, 1961 enacted in India.

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in
the Balance sheet and the corresponding tax bases used in the computation of taxable profit and
are accounted for using the liability method. Deferred tax liabilities are generally recognised for all
taxable temporary differences, and deferred tax assets are generally recognized for all deductible
temporary differences, carry forward tax losses and allowances to the extent that it is probable that
future taxable profits will be available against which those deductible temporary differences, carry
forward tax losses and allowances can be utilised. Deferred tax assets and liabilities are measured
at the applicable tax rates. Deferred tax assets and deferred tax liabilities are off set and presented
as net.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available against which
the temporary differences can be utilised.

Credit of MAT is recognised as an asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period, i.e., the period for which
MAT credit is allowed to be carried forward. In the year in which the MAT credit becomes eligible to
be recognized as an asset, the said asset is created by way of a credit to the profit and loss account
and shown as MAT credit entitlement. The Company reviews the same at each balance sheet date
and writes down the carrying amount of MAT credit entitlement to the extent there is no longer
convincing evidence to the effect that the Company will pay normal income tax during the specified
period.

7. Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalized as part of the cost of respective assets during the
period of time that is required to complete and prepare the asset for its intended use. Qualifying

assets are assets that necessarily take a substantial period of time to get ready for their intended
use or sale. Other borrowing costs are expensed in the period in which they are incurred.

8. Inventories

Raw materials and stores, work-in-progress, traded and finished goods are stated at the lower of
cost and net realizable value. Cost of raw materials and traded goods comprise of cost of purchase.
Cost of work-in-progress and finished goods comprises direct materials, direct labour and an
appropriate proportion of variable and fixed overhead expenditure, the later being allocated on the
basis of normal operating capacity. Cost of inventories also include all other cost incurred in
bringing the inventories to their present location and condition. Net realizable value is the estimated
selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale.

9. Cash and cash equivalents

The Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and
short-term deposits with a maturity period of three months or less from the balance sheet date,
which are subject to an insignificant risk of changes in value.

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Mar 31, 2015

1. BASIS OF ACCOUNTING PREPARATION:

These financial statements have been prepared under historical cost convention from books of accounts maintained on an accrual basis (unless otherwise stated hereinafter) in conformity with accounting principles generally accepted in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013, of India. The accounting policies applied by the company are consistent with those used in previous year.

2. USE OF ESTIMATES:

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. FIXED ASSETS:TANGIBLE ASSETS Own Fixed Assets

Fixed Assets are stated at historical cost of acquisition less accumulated depreciation. Cost includes related expenditure incurred for bringing the asset to its working condition for its intended use.

Leased Fixed Assets

Leased Fixed Assets: Operating Leases: Rentals are expensed with reference to lease terms and other considerations.

4. DEPRICIATION

Depreciation on fixed assets has been provided on Straight Line Method based on life assigned to each asset in accordance with Schedule II of The Companies Act, 2013. Depreciation on assets acquired and put to use during the year is provided on pro-rata basis. Depreciation on assets sold during the year has not been provided for in the books of accounts.

5. INVENTORIES:

a. Raw materials are stated at cost or net realizable value whichever is lower. Cost includes expenses for procuring the same and is computed on First In First Out basis.

b. Stock of finished goods and materials in process have been valued at cost or net realizable value whichever is lower. The cost includes direct cost and attributable overheads.

c. Packing materials, stores and spares are stated at cost or net realizable value whichever is lower. Cost is computed on First in first out basis.

6. INVESTMENTS:

Long term investments are stated at cost less provision for other than temporary diminution in value.

7. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE:

Events occurring after the Balance sheet date have been considered in the preparation of financial statements.

8. REVENUE RECOGNITION:

Sales are recorded net of returns, trade discounts, rebates and sales taxes. Lease Rent Income is recognized on the basis of terms of agreement.

9. RETIREMENT BENEFITS:

i. The Company makes the contributions to Provident Fund at the prescribed rates and accounts the same on basis of actual liability. .

ii. The Present value of the defined benefit obligation and the related current service cost were measured for Gratuity with actuarial valuation being carried out at the year end.

iii. Leave encashment are not ascertained actuarially but provided for at the gross undiscounted amount payable, the effect of which on accounts is not material.

10. TAXATION:

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. The Company provides for Income Tax on estimated taxable income and based on expected outcome of assessments/appeals, in accordance with the provisions of the Income Tax Act, 1961 and rules framed there under. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

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Mar 31, 2013

1. BASIS OF ACCOUNTING PREPARATION:

The financial statements are prepared on mercantile basis, under the historical cost convention in accordance with the generally accepted accounting principles in India and as per the requirements of the Companies Act, 1956.

2. USE OF ESTIMATES:

The preparation of financial statements requires the management of the company to make estimates and assumptions that effect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year.

3. FIXED ASSETS: Own Fixed Assets

Fixed Assets are stated at historical cost of acquisition less accumulated depreciation. Cost includes related expenditure incurred for bringing the asset to its working condition for its intended use.

Leased Fixed Assets

Operating Leases: Rentals are expensed with reference to lease terms and other considerations.

4. DEPRICIATION

Depreciation on fixed assets has been provided on Straight Line Method at the rates prescribed in Schedule XIV of The Companies Act, 1956.

Depreciation on assets acquired and put to use during the year is provided on pro-rata basis.

5. INVENTORIES:

a. Raw materials are stated at cost or net realizable value whichever is lower. Cost includes expenses for procuring the same and is computed on First In First Out basis.

b. Stock of finished goods and materials in process have been valued at cost or net realizable value ________whichever is lower. The cost includes direct cost and attributable overheads.________________

c. Packing materials, stores and spares are stated at cost or net realizable value whichever is lower. Cost is computed on First in first out basis.

6. INVESTMENTS:

Long term investments are stated at cost less provision for other than temporary diminution in value.

7. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE:

Events occurring after the Balance sheet date have been considered in the preparation of financial statements.

8. REVENUE RECOGNITION:

Sales are recorded net of returns, trade discounts, rebates and sales taxes. Lease Rent Income is recognised on the basis of terms of agreement.

9. RETIREMENT BENEFITS:

i. The Company makes the contributions to Provident Fund at the prescribed rates and accounts the same on basis of actual liability.

ii. The Present value of the defined benefit obligation and the related current service cost were measured for Gratuity with actuarial valuation being carried out at the year end.

iii. Leave encashment are not ascertained actuarially but provided for at the gross undiscounted amount payable, the effect of which on accounts is not material.

10. BUSINESS SEGMENT AND OPERATIONS:

In the context of Accounting Standard - 17 on "Segment Reporting" issued by The Institute of Chartered Accountants of India, management considers its operations to constitute primary segments namely "MANUFACTURING OF DIFFERENT TYPES OF FLOURS. The Plastic Unit of the Company has been leased out and business is discontinued.

11. TAXATION:

The Company provides for Income Tax on estimated taxable income and based on expected outcome of assessments/appeals, in accordance with the provisions of the Income Tax Act, 1961 and rules framed there under.

Consequent to the issuance of the Accounting Standard 22 - "Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which states that deferred tax should be recognised based on timing differences between the accounting income and the estimated taxable income for the year and quantify the same using the tax rates and laws enacted or substantively enacted as at the Balance Sheet date. Deferred tax assets are recognised and carried forward to the extent there is a virtual certainity that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2012

1. BASIS OF ACCOUNTING PREPARATION: The financial statements are prepared on mercantile basis, under the historical cost convention in accordance with the generally accepted accounting principles in India and as per the requirements of the Companies Act, 1956.

2. USE OF ESTIMATES: The preparation of financial statements requires the management of the company to make estimates and assumptions that effect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year.

3. FIXED ASSETS: Own Fixed Assets

Fixed Assets are stated at historical cost of acquisition less accumulated depreciation. Cost includes related expenditure incurred for bringing the asset to its working condition for its intended use.

Leased Fixed Assets

Operating Leases: Rentals are expensed with reference to lease terms and other considerations.

4. DEPRECIATION Depreciation on fixed assets has been provided on Straight Line Method at the rates prescribed in Schedule XIV of The Companies Act, 1956. Depreciation on assets acquired and put to use during the year is provided on pro-rata basis.

5. INVENTORIES:

a. Raw materials are stated at cost or net realizable value whichever is lower. Cost includes expenses for procuring the same and is computed on First In First Out basis.

b. Stock of finished goods and materials in process have been valued at cost or net realizable value whichever is lower. The cost includes direct cost and attributable overheads.

c. Packing materials, stores and spares are stated at cost or net realizable value whichever is lower. Cost is computed on First in first out basis.

6. INVESTMENTS:

Long term investments are stated at cost less provision for other than temporary diminution in value.

7. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE:

Events occurring after the Balance sheet date have been considered in the preparation of financial statements.

8. REVENUE RECOGNITION:

Sales are recorded net of returns, trade discounts, rebates and sales taxes. Lease Rent Income is recognised on the basis of terms of agreement.

9. RETIREMENT BENEFITS:

i. The Company makes the contributions to Provident Fund at the prescribed rates and accounts the same on basis of actual liability.

ii. The Present value of the defined benefit obligation and the related current service cost were measured for Gratuity with actuarial valuation being carried out at the year end.

iii. Leave encashment are not ascertained actuarially but provided for at the gross undiscounted amount payable, the effect of which on accounts is not material.

10. BUSINESS SEGMENT AND OPERATIONS:

In the context of Accounting Standard-17 on "Segment Reporting" issued by The Institute of Chartered Accountants of India, management considers its operations to constitute primary segments namely "MANUFACTURING OF DIFFERENT TYPES OF FLOURS. The Plastic Unit of the Company has been leased out and business is discontinued.

11. TAXATION:

The Company provides for Income Tax on estimated taxable income and based on expected outcome of assessments/appeals, in accordance with the provisions of the Income Tax Act, 1961 and rules framed there under.

Consequent to the issuance of the Accounting Standard 22-"Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which states that deferred tax should be recognised based on timing differences between the accounting income and the estimated taxable income for the year and quantify the same using the tax rates and laws enacted or substantively enacted as at the Balance Sheet date. Deferred tax assets are recognised and carried forward to the extent there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2011

(1) Basis of Accounting Preparation :

The financial statements are prepared on mercantile basis, under the historical cost convention in accordance with the generally accepted accounting principles in India and as per the requirements of the Companies Act, 1956.

(2) Use of Estimates :

The preparation of financial statements requires the management of the company to make estimates and assumptions that effect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year, Example of such estimates include provisions for doubtful debts, employee benefits, provision for income taxes, accounting for contract costs expected to be incurred to complete software development and the useful lives of fixed assets.

(3) Fixed Assets and Depreciation :

Fixed Assets are stated at historical cost of acquisition less accumulated depreciation. Cost includes related expenditure incurred for bringing the asset to its working condition for its intended use.

Depreciation on fixed assets has been provided on Straight Line Method at the rates prescribed in Schedule XIV of The Companies Act, 1956.

Depreciation on assets acquired and put to use during the year is provided on pro-rata basis.

(4) Impairment of Assets :

Impairment loss is charged to the Profit & Loss account in the period in which, assets is identified as impaired. The impairment loss recognised in the prior accounting periods is revised if there has been a change in the estimate of recoverable amount.

(5) Inventories :

1) Raw materials are stated at cost or net realizable value whichever is lower. Cost includes expenses for procuring the same and is computed on First In First Out basis.

2) Stock of finished goods and materials in process have been valued at cost or net realizable value whichever is lower. The cost includes direct cost and attributable overheads.

3) Packing materials, stores and spares are stated at cost or net realizable value whichever is lower. Cost is computed on First in first out basis.

(6) Investments :

Long term investments are stated at cost less provision for other than temporary diminution in value.

(7) Events occurring after the Balance Sheet Date :

Events occurring after the Balance sheet date have been considered in the preparation of financial statements.

(8) Revenue Recognition :

Sales are recorded net of returns, trade discounts, rebates and sales taxes. Lease Rent Income is recognised on the basis of terms of agreement.

(9) Retirement Benefits :

The Company makes the contributions to Provident Fund at the prescribed rates and accounts the same on basis of actual liability.

The Present value of the defined benefit obligation and the related current service cost were measured for Gratuity with actuarial valuation being carried out at the year end which was Rs. 31,910/- the necessary effect of the same given.

Leave encashment are not ascertained actuarially but provided for at the gross undiscounted amount payable, the effect of which on accounts is not material.

(10) Borrowing Costs :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

(11) Business Segment and Operations :

In the context of Accounting Standard - 17 on "Segment Reporting" issued by The Institute of Chartered Accountants of India, management considers its operations to constitute primary segments namely "MANUFACTURING OF DIFFERENT TYPES OF FLOURS. The Plastic Unit of the Company has been leased out and business is discontinued.

(12) In respect of the Plastic unit, the company has Lease arrangements which are in respect of Operating leases mainly for the factory premises (including office & godown). Generally, these lease arrangements are for a period less than a year and are renewable by mutual consent, on mutually agreeable/predetermined terms. The aggregate Lease rentals are credited to the Profit and Loss Account.

(13) Taxation :

The Company provides for Income Tax on estimated taxable income and based on expected outcome of assessments/appeals, in accordance with the provisions of the Income Tax Act, 1961 and rules framed thereunder.

Consequent to the issuance of the Accounting Standard 22 - "Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which states that deferred tax should be recognised based on timing differences between the accounting income and the estimated taxable income for the year and quantify the same using the tax rates and laws enacted or substantively enacted as at the Balance Sheet date. Deferred tax assets are recognised and carried forward to the extent there is a virtual certainity that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2010

(1) Basis of Accounting Preparation :

The financial statements are prepared on mercantile basis, under the historical cost convention in accordance with the generally accepted accounting principles in India and as per the requirements of the Companies Act, 1956.

(2) Use of Estimates :

The preparation of financial statements requires the management of the Company to make estimates and assumptions that effect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year, Example of such estimates include provisions for doubtful debts, employee benefits, provision for income taxes, accounting for contract costs expected to be incurred to complete software development and the useful lives of fixed assets.

(3) Fixed Assets and Depreciation :

Fixed Assets are stated at historical cost of acquisition less accumulated depreciation. Cost includes related expenditure incurred for bringing the asset to its working condition for its intended use.

Depreciation on fixed assets has been provided on Straight Line Method at the rates prescribed in Schedule XIV of The Companies Act, 1956.

Depreciation on assets acquired and put to use during the year is provided on pro-rata basis.

(4) Impairment of Assets :

Impairment loss is charged to the Profit & Loss account in the period in which, assets is identified as impaired. The impairment loss recognised in the prior accounting periods is revised if there has been a change in the estimate of recoverable amount.

(5) Inventories :

1) Raw materials are stated at cost or net realizable value whichever is lower. Cost includes expenses for procuring the same and is computed on First In First Out basis.

2) Stock of finished goods and materials in process have been valued at cost or net realizable value whichever is lower. The cost includes direct cost and attributable overheads.

3) Packing materials, stores and spares are stated at cost or net realizable value whichever is lower. Cost is computed on First in first out basis.

(6) Investments :

Long term investments are stated at cost less provision for other than temporary diminution in value.

(7) Events occurring after the Balance Sheet Date :

Events occurring after the Balance sheet date have been considered in the preparation of financial statements.

(8) Revenue Recognition :

Sales are recorded not of returns, trade discounts, rebates and sales taxes. Lease Rent Income is recognised on the basis of terms of agreement.

(9) Retirement Benefits :

The Company makes the contributions to Provident Fund at the prescribed rates and accounts the same on basis oi actual liability,

The Present value of the defined benefit obligation and the related current service cost were measured for Gratuity with actuarial valuation being carried out at the year end which was Rs. 78,691/- the necessary effect of the same given.

Leave encashment are not ascertained actuarially but provided for at the gross undiscounted amount payable, the effect of which on accounts is not material.

(10) Borrowing Costs :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

(11) Business Segment and Operations :

in the context of Accounting Standard - 17 on "Segment Reporting" issued by The Institute of Chartered Accountants of India, management considers its operations to constitute primary segments namely "MANUFACTURING OF DIFFERENT TYPES OF FLOURS". The Plastic Unit of the Company has been leased out and business is discontinued.

(12) In respect of the Plastic unit, the Company has Lease arrangements which are in respect of Operating leases mainly for the factory premises (including office & godown). Generally, these lease arrangements are for a period less than a year and are renewable by mutual consent, on mutually agreeable/predetermined terms. The aggregate Lease rentals are credited to the Profit and Loss Account.

(13) Taxation :

The Company provides for Income Tax on estimated taxable income and based on expected outcome of assessments/appeals, in accordance with the provisions of the Income Tax Act, 1961 and rules framed thereunder,

Consequent to the issuance of the Accounting Standard 22 -"Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which states that deferred tax should be recognised based on timing differences between the accounting income and the estimated taxable income for the year and quantify the same using the tax rates and laws enacted or substantively enacted as at the Balance Sheet date. Deferred tax assets are recognised and carried forward to the extent there is a virtual certainity that sufficient future taxable income will be available against which such deferred tax assets can be realized.