Accounting Policies of Tarai Foods Ltd. Company

Mar 31, 2024

Significant accounting policies:

a) Basis of preparation of Financial Statements

i) In accordance with the notification issued by the Ministry of Corporate Affairs, the
Company is required to prepare its Financial Statements as per the Indian Accounting
Standards (''Ind AS'') prescribed under section 133 of the Companies Act, 2013 read with
Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended by the
Companies (Accounting Standards) Amendment Rules, 2016 with effect from 1^st April,
2016. Accordingly, the Company has prepared these Financial Statements which
comprise the Balance Sheet as at 31^st March, 2024, the Statement of Profit and Loss, the
Statement of changes in Equity for the year ended 31^st March, 2024 and a summary of
Significant accounting policies and other Explanatory Information (together hereinafter
referred to as "Financial Statements".

ii) The financial statements of the company are prepared in accordance with the Indian
Generally Accepted Accounting Principles (GAAP) on the accrual basis of accounting and
historical cost convention except for certain material items that have been measured at
fair value as required by the relevant Ind AS and explained in the ensuing policies below.

iii) The financial statements are presented in Indian Rupees (''INR'') and all values are
rounded to the nearest crore, except otherwise indicated.

b) Use of estimates and judgments

i) The preparation of the financial statements requires the management to make
estimates and assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent liabilities as at the date of the financial statements and the
reported amount of revenue and expenses during the reporting period. The recognition,
measurement, classification or disclosure of an item or information in the financial
statements is made relying on these estimates.

4. Property, Plant and Equipments:

The cost of Property, Plant and Equipment comprises its purchase price net of any trade
discounts and rebates, any import duties and other taxes (other than those
subsequently recoverable from the tax authorities), any directly attributable
expenditure on making the asset ready for its intended use, including relevant
borrowing costs for qualifying assets. Expenditure incurred after the property, plant and
equipment have been put into use, are charged to Statement of Profit and Loss in the
period in which the costs are incurred.

Capital Work-In-Progress is carried at cost, comprising direct cost, related incidental
expenses, if any to the extent they relate to the period till assets are ready for intended
use.

5. Depreciation:

TANGIBLE ASSETS:

Depreciation has been provided based on useful life assigned to each asset in
accordance with Schedule II of the Companies Act, 2013 as per rates prescribed
according to the Straight Line Method.

6. Revenue Recognition and Sales:

Revenue on sale of goods is recognized on transfer of risks and reward which generally
coincide with dispatch of goods to the parties.

7. Inventories:

a. Finished Goods are valued at the lower of cost and net realizable value. Cost for this
purpose includes direct cost and an appropriate portion of allocable overheads.

b. W.I.P. is valued at cost. Cost for this purpose includes direct cost and attributable
overheads.

c. In case of stores and spares and packing material and raw material, ''Specific
Identification'' method and for other inventories, FIFO method is used.

8. Employee Benefits:

a. Provident Fund:

Provident Fund is a defined contribution scheme and the Company''s contributions are
charged to the Profit and Loss Account during the period in which the employee renders
the related services.

b. Gratuity and Leave Encashment entitlement:

The company''s liability towards the Gratuity and Leave Encashment is accounted for on
the basis of actuarial valuation done at the year end and is charged to Statement of
Profit and Loss.

Ind AS 19 requires the exercise of judgment in relation to various assumptions including
future pay rises, inflation and discount rates. The Company determines the assumptions
in conjunction with its actuaries, and believes these assumptions to be in line with best
practice.

9. TAXATION

Income Tax expenses comprise current tax (i.e. amount of tax for the year determined in
accordance with the Income Tax Laws). Deferred Tax on assets are recognized and
carried forward only if there is a virtual/ reasonable certainty of realization of such
assets in near future and are reviewed for their appropriateness of respective carrying
value at Balance Sheet date.

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Mar 31, 2015

1. General:

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013 under the historical cost convention on the accounting principles of Going Concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements are made relying on these estimates. Any revision to accounting estimates is recognized prospectively.

2. Fixed Assets: TANGIBLEASSETS:

Fixed Assets are stated at cost of acquisition and subsequent improvement hereto including taxes, duties, freight and other incidental

expenses related to acquisition and installation. In accordance with AS 28, where there is any indication of impairment of the Company's assets

related to cash generating unit, carrying amount of such assets are reviewed at Balance Sheet date.

Capital Work-In- Process is carried at cost, comprising direct cost, related incidental expenses, if any to the extent they relate to the period till assets are ready for in tendeduse.

3. Depreciation : TANGIBLE ASSETS:

Depreciation has been provided based on useful life assigned to each asset in accordance with Schedule II of the Companies Act, 2013 as per rates prescribed according to the Straight Line Method.

4. Revenue Recognition and Sales:

Revenue on sale of goods is recognized on transfer of risks and reward which generally coincide with dispatch of goods to the parties. Sales are netofvalueaddedtax.

5. Inventories :

a. Finished Goods are valued at the lower of cost and net realizable value. Cost for this purpose includes direct cost and an appropriate portion of allocable overheads.

b. W.I.P. is valued at cost. Cost for this purpose includesdirect cost and attributable overheads.

c. In case of stores and spares and packing material and raw material, 'Specific Identification' method and for other inventories, FIFO method is used.

6. Employee Benefits:

a. Provident Fund:

Provident Fund is a defined contribution scheme and the Company's contributions are charged to the Profit and Loss Account during the period in which the employee renders the related services.

b. Gratuity and Leave Encashment entitlement:

The company's liability towards the Gratuity and Leave Encashment is accounted for on the basisof actuarial valuation done at the year end and is charged to Statement of Profit and Loss.

7. TAXATION

Income Tax expenses comprise current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Laws). Deferred Tax on assets are recognized and carried forward only if there is a virtual/ reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of respective carrying value at Balance Sheet date.

8. Provisions, Contingent Liabilities and Contingent assets:

Provision is made based on a reliable estimate when it is probable that an outflowof resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.

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Mar 31, 2014

1. General:

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accounting principles of Going Concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements are made relying on these estimates. Any revision to accounting estimates is recognized prospectively.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvement hereto including taxes, duties , freight and other incidental expenses related to acquisition and installation. In accordance with AS 28, where there is any indication of impairment of the Company's assets related to cash generating unit, carrying amount of such assets are reviewed at Balance Sheet date.

Capital Work-in- Process is carried at cost, comprising direct cost, related incidental expenses, if any to the extent they relate to the period till assets are ready for intended use.

3. Depreciation:

Depreciation is charged on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

4. Revenue Recognition and Sales:

Revenue on sale of goods is recognized on transfer of risks and reward which generally coincide with dispatch of goods to the parties. Sales are net of value added tax.

5. Inventories:

a. Finished Goods are valued at the lower of cost and net realizable value. Cost for this purpose includes direct cost and an appropriate portion of allocable overheads.

b. W.l.P. is valued at cost. Cost for this purpose includes direct cost and attributable overheads.

c. In case of stores and spares and packing material and raw material, 'Specific Identification' method and for other inventories. FIFO method is used.

6. Employee Benefits:

a. Provident Fund:

Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account as incurred

b. Gratuity and Leave Encashment entitlement:

The company's liability towards the Gratuity and Leave Encashment is accounted for on the basis of actuarial valuation done at the year end and is charged to Statement of Profit and Loss.

7. TAXATION

Income Tax expenses comprise current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Laws). Deferred Tax on assets are recognized and carried forward only if there is a virtual/ reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of respective carrying value at Balance Sheet date.

8. Provisions, Contingent Liabilities and Contingent assets:

Provision is made based a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.

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Mar 31, 2013

1. General:

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accounting principles of Going Concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements are made relying on these estimates. Any revision to accounting estimates is recognized prospectively.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvement hereto including taxes, duties, freight and other incidental expenses related to acquisition and installation. In accordance with AS 28, where there is any indication of impairment of the Company''s assets related to cash generating unit, carrying amount of such assets are reviewed at Balance Sheet date.

3. Depreciation:

Depreciation is charged on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

4. Revenue Recognition and Sales:

Revenue on sale of goods is recognized on dispatch of goods to the parties. Sales are net of sales tax.

5. Inventories:

Inventories are valued at the lower of cost and net realizable value. In case of stores and spares and packing material and raw material, ''Specific Identification'' method and for other inventories, FIFO method is used. In case of Finished Goods, cost includes an appropriate portion on allocable overheads.

6. Employee Benefits:

a. Provident Fund:

Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account as incurred.

b. Gratuity

The company provides for the liability on the balance sheet date as per the actuarial valuation done.

c. Leave encashment/ Entitlement:

The employees are entitled to accumulate leaves as per the rules of the Company. Leaves accruing within the year of termination/retirement along with the that of immediately preceeding year subject to maximum mentioned in the policy can be encashed at the time of retirement/ termination. Liability for the leave encashment is provided for on the * basis of the actuarial valuation done.

7. TAXATION

Income Tax expenses comprise current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Laws). Deferred Tax on assets are recognized and carried forward only if there is a virtual/ reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of respective carrying value at Balance Sheet date.

8. Provisions, Contingent Liabilities and Contingent assets:

Provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.

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Mar 31, 2011

1. General:

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accounting principles of Going Concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements are made relying on these estimates. Any revision to accounting estimates is recognized prospectively.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvement hereto including taxes, duties, freight and other incidental expenses related to acquisition and installation. In accordance with AS 28,where there is any indication of impairment of the Companys assets related to cash generating unit, carrying amount of such assets are reviewed at Balance Sheet date

3. Depreciation:

Depreciation is charged on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956

4. Revenue Recognition and Sales:

Revenue on sale of goods is recognized on dispatch of goods to the parties. Sales are net of sales tax.

5. Inventories:

Inventories are valued at the lower of cost and net realizable value. In case of stores and spares and packing material and raw material, Specific Identification method and for other inventories, FIFO method is used. In case of Finished Goods, cost includes an appropriate portion on allocable overheads.

6. Employee Benefits:

a. Provident Fund:

Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account as incurred.

b. Gratuity

The company provides for the liability on the balance sheet date and no actuarial valuation is done by them.

c. Leave encashment/ Entitlement:

The employees are entitled to accumulate leaves as per the rules of the Company. Leaves accruing within the year of termination/retirement along with the that of immediately proceeding year can be encashed at the time of retirement/ termination. Liability for the leave encashment is provided for on the basis of the eligible leaves at the close of the year.

7. TAXATION

Income Tax expenses comprise current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Laws). Deferred Tax on assets are recognized and carried forward only if there is a virtual/reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of respective carrying value at Balance Sheet date.

8. Provisions,ContingentLiabilities and Contingent assets:

Provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.

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Mar 31, 2010

1. General:

(a) The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accounting principles of Going Concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accural basis except those with significant uncertainties.

(b) The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contin gent liabilities on the date of financial statements. The recognisition, measurement, classification or disclosure of an item or information in the financial statements are made relying on these estimates. Any revsion to accounting estimates is recognized prospectively.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvement hereto including taxes, duties, freight and other incidental expenses related to acquisition and installation. In accordance with AS 28, where there is any indication of impairment of the Companys assets related to cash generating unit, carrying amount of such assets are reviewed at Balance Sheet date.

3. Depreciation:

Depreciation is charged on straight line method at the rates specified In Schedule XIV of the Companies Act,1956.

4. Revenue Recognition and Sales :

Revenue on sale of goods is recognised on despatch of goods to the parties. Sales are net of sates tax.

5. Inventories: Inventories are valued at the lower of cost and net realizable value. In case of stores and spares and packing material, Specific Identification method and for other inventories, FIFO method is used. In case of Finished Goods, cost includes an appropriate portion on allocable overheads.

6. Employee Benefits ;

a). Provident Fund ;

Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account as Incurred.

b). Gratulty :

Gratuity is defined retirement plan. The company provides for the provision and no actuarial valuation is done by them.

c). Leave encashment / Entitlement :

The employees are entitled to accumulate leaves as per the rules of the Company. Liability for the leave encashmenl is provided for on the basis of the eligible leaves at the close of the year.

7. Taxation:

Income Tax expenses comprise current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Laws). Deferred Tax on assets are recognized and carried forward only If there is a virtual / reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of respective carrying value at Balance Sheet date.

8. Provisions, Contingent Liabilities and Contingent assets :

Provision is made based on a reliable estimate when it is probable that an outflow of resources embodying | economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.