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Accounting Policies of Camson Bio Technologies Ltd. Company

Mar 31, 2016

CORPORATE INFORMATION

Camson Bio Technologies Limned the Company'') is in the field of bio technology focused on manufacture of effective, safe and environmentally friendly natural pest management products for the agricultural markets

2SIGNFICANT ACCOUNTING POLICIES:

2.1 Basis for preparation of financial statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply wills The Accounting Standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules. 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") '' Companies Act, 1956 The 1956 Act"), as applicable. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.3 Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities (including contingent liability) and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations during the period under review. Although these estimates are based upon the Managements best knowledge of current events and actions, actual rhesus could differ from these estimates are recognized in the periods in the results are known.

2.3 Cash and cash equivalents (for purposes of Cash (flow statement);

cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that arc readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.4 Cash flow statement.

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing, activities of the Company arc segregated based on the available information.

2.5 Tangib1e/intangible Assets

Fixed assets at stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price, expenses incidental to the installation of the assets, cost of bringing the asset to its working condition for its intended use and attributable borrowing costs. Capital Work-in Progress comprises cost of fixed assets that are not yet ready for their intended use as at the balance sheet basis of qualifying fixed. Intangible assets are recorded at the consideration paid for their acquisition .which can be used only in connection with an item of fixed.

2.6 Depreciation / Amortization:

a, Tangible assets:

i. Tangible assets are stated at cost of acquisition (including incidental expenses), less accumulated depreciation. Assets disposals are stalled at the lower of their net book value and net realizable value.

b. Depreciation on Tangible assets

Depreciation on tangible assets is charged on Straight Line Method (SLM) in accordance the useful lives specified in Schedule II to the Companies Act. 2013 on a pro-rata basis except for following assets in respect of which is taken as estimated by the management based on the actual usage pattern of the assets

  1. Poly house and land development cost has been depreciated over a period of ten years.
  2. ii The cost of leasehold land is being amortized over 99 years
  3. Deprecation on addition detections during the year has been provided for on pro-rata basis assets purchased installed during the year costing less than Rs, 5,000/- each are fully depreciated.

c) Intangible assets

Intangible assets are stated at cost less accumulated amortization and impairment loss if any.

d. Amortization of Intangible assets

i. Intangible assets comprises of computer software which is amortized over the estimated use full life The Maximum period for such amortization is taken as 36 months based on management estimates of useful life.

ii. Intangible assets are depreciated over the license period or estimated use full life in the range of 3 to 6 whichever is lower.

2.7 investments:

Investments that. are readily realizable and intended to be held for not more than a year are classified as current, investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost, except for other than temporary diminution in value, if any, ate provided for.

2.8 Inventories:

a. Inventories: comprises of Packing Materials and Finished Goods.

b. Cost, of'' inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

c. The method of valuation o (''various categories of inventories is as follow*:

(i) Slack in trade. raw materials, and packing materials are valued at and net realizable value on Weighted Average Cost basis, Materials and other items held for use in the production of inventories are written down below if the resulting finished products are not expected o be sold at. or above cost

Raw materials and packing materials are valued at RFC) basis till previous year. In the current year it has been valued at weighted average cost basis and the impact of change in valuation is not material.

(ii) Finished Goods arc valued at. lower of cost and net realizable value. Cost includes direct materials and expenses and apportionment of manufacturing overheads based on normal operating capacity.

(in-progress are valued at cost plus production overheads.

2.9 Employee Benefits:

a. Post-employment benefit, plans

Contribution to defined contributory retirement benefit schemes arc recognized as an expense when employees have rendered services entitling them to contributions. For defined benefit the cost of providing benefits is determined using the Project Unit Credit Method, with actuarial valuation being carried out at. each Balance Sheet Date. Actuarial gains and losses are recognized m full in the Statement and Loss for the period in which they occur.

Ix Short Term Employee Benefits: The amount payable on account of’ short term employee benefits comprising largely of salaries and wages, annual bonus/ incentives etc. is valued on an un discounted basis and charged to the Statement of profit &loss for the year,

e. Other long term Employee Benefits: The employees are entitled to accumulate leave subject to certain limits for future a ailment. The liabilities for such compensated absence arc provided based on the number of days of unutilized leave at each balance sheet date on the basis of an rule-pendent actuarial valuation.

2.10 Employee share based payment''s

The Company has formulated Employee Stock Option Schemes (ESOS) in accordance with the SI./BI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. The Schemes provide for grant of ''options to employees of the company and its subsidiaries to acquire equity shares of the Company that vest in a graded manner and that are to be exercised within a specified period. In accordance with the SERI Guidelines: the excess, if any, of the closing market price on the day prior to the grant of the options under ESOS over the exercise price is amortized on a straight-line basis over the vesting period.

2.11 Revenue Recognition:

Revenue is recognized to the extern that it is probable that the economic benefits will flow Company and the be reliably measured.

a. Saia of Goods:

Revenue from sale of" goods is recognized when significant risk'' and rewards of the ownership of the goods have passed to the buyer which generally coincides with dispatch of goods to the customer and when there is no significant un regarding she consideration that will be derived from die sale of goods.

h. Interest Income;

Interest income is accounted on accrual faking into account the amount outstanding and the role applicable.

2 J 2 Research And Development:

Revenue expenditure pertaining to research is charged lo the Statement of Profit and Loss. Development costs of products arc also charged to the Statement of Profit and Loss unless a product''s technical feasibility has been established, in which case such expenditure is capitalized. The amount capitalized comprises expenditure that, can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilized for research and development arc capitalized and depreciated in accordance with the policies stated for Fixed Assets.

2.13 Borrowing Costs:

''Borrowing costs include interest, amortization of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest east. Costs in connection with the borrowing of funds to the extent not directly related So the acquisition of qualifying assets are charged to die Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalization of such asset are added to the cost of the assets. Capitalization of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

2.4 Taxation:

a. Current ‘tax:

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

b. Minimum Alternative Tax (MAT):

Minimum Alternate Tax (MAT) paid in accordance with the fax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is highly probable that future economic benefit associated with if will flow to the Company. .

e, Deferred Tax:

''Deferred lax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured use; She tax rates and the tax laws enacted or substantively enacted as at the reporting dale, Deferred tax liabilities are recognized for all timing differences. Deferred tax assets arc recognized for timing (Terence’s of items other than unabsorbed depreciation and cam-forward losses only to the extern that reasonable certainly exi.sls that sufficient future taxable income will be available against which these can be realized. However, inhere are unabsorbed depreciation and carry forward of losses and items relating to capital losses, deferred tax assets arc recognized only if there is virtual certainly supported by convincing evidence that there will be sufficient future taxable income available to realize the assets. Deterred tax assets and liabilities arc offset if such items relate to taxes on income levied by the same governing tax laws and the Company has n legally enforceable right for such set off. Deferred tax assets arc reviewed at cash balance sheet date for and deferred tax relating lo items directly recognized m reserves is creolized ii) reserves and not in the Statement of Profit and Loss.

2.15 impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment of the carrying amount of the Company''s assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. The recoverable amount is greater of the net selling price or value in use. Where it is not possible to estimate the recoverable amount of'' an individual asset, the company estimates the recoverable amount of the cash generating unit to which the asset belongs.

2.16 Foreign Currency Transactions:

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate-the rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are restated at the exchange rate prevalent on the Balance Sheet date and gain/ loss on such restatement is charged lo die Statement and Loss.

2,1.7 Leases:

Assets acquired on lease where a significant portion of the risks and rewards of the ownership are retained by the lesser are classified as operating lease. Lease rentals arc charged off to the Statement of Profit and Loss on straight line basis on the lease term as incurred.

2.18 Earnings per Share:

Basic earnings per share is computed by dividing the profit / (loss) after lax (including die post-lax elect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

2.19 Provisions and contingent liabilities:

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation m respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate, required to settle die obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Conned liabilities are disclosed in the Notes. Contingent assets are not recognized in the financial statements.

2.2(1 Operating Cycle:

Ali assets and liabilities have been classified as current and non-current as per the company''s normal operating cycle and other criteria set out in the schedule II of the Companies Act 2013. Based on the nature of service;'' operations. The company has ascertained it’s operating cycle as 1 months for the purpose of current and non-curred classification of assist and liabilities.

27. Additional Disclosures

Dues us Micro and Small Enterprises have been determined to the exie.nl such parties have been identified on the basis of information collected by the Management. This has been relied upon by die auditors.

27,3 Disclosure as per Clause 32 of the Listing. Agreements with the Stock Exchanges

(i) Loans and. advances in the nature of loans given to subsidiaries, firms / companies in winch directors are interested:

28, Disclosure under Accounting Standards: -

28, Employee Benefits

a) Defined contribution plans:

The Company makes Provident Fund contribution and Employee Sciatic Insurance Scheme entry which arc defined contribution plans, for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund she benefits. I he Company recognized Rs. 4,028,057 F Y . Rs. 4.239,096 for provident fund contributions and Rs. 42.076 (F.Y. Rs. 63,686) for Employee Stale insurance Scheme contribution in the Statement of profit and loss. The contributions payable to these plan, by the Company are at riles specified in the rules of the respective scheme.

b) The fined benefit plans.

The Company makes provision for Employees’ Gratuity Sachem for eligible employees. The scheme provides tor lump sum payment to eligible employees at retirement. death while m employment, or on termination of employment, an amount equivalent to 15 days salary payable for each completed year of service or pair thereof in excess of six months. Eligibility occurs upon completion of five years of service.

The present value of the defined bonnet obligation and current service east were measured using the Projected Unit. Credit Method, with actuarial valuations being carried out at the balance sheet date.

a) Employees are entitled to accumulation of leave which can be enchased at the lime of retirement or termination, The leave encashment benefit scheme is a defined benefit plan and is not funded, lie née, there are no plan assets attributable to the obligation, ''The Leave encashment liability under defined benefit plan as on 31,03,2016 is Rs,1,854,379 (P.Y.Rs,704.427)

28.2 Employee Stock Options Plan

In the extraordinary general meeting held on Feb 12, 2015 the shareholders approved the issue of'' 1.499,9% options under the Scheme ESOR

The ESOP allows the issue of options to employees of the Company Bach option comprises one under equity share.

As per the Scheme, the Remuneration / Compensation Committee grants the options to the employees deemed eligible. The exercise price teach option shall, be Rs, 109- One Hundred Nine Only) per option as defined in the Scheme. The options granted vest over a period of 3ycars from the date of the grant in proportions specified in the Scheme. Options may be exercised within 365 days of vesting.

The difference between the fair price of the share tm crying the options granted on the date of grant of option and the exercise price of the option (being the intrinsic value of the option) representing Stock compensation expense is expensed over the vesting period.


Mar 31, 2015

1.1 Basis for preparation of Financial Statements:

The financial statements are prepared under the historic cost convention, on accrual basis of accounting and as per applicable Notified Accounting Standards laid down in Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The accounting policies adopted by the company are consistent with those of the previous year.

All assets and liabilities have been classified as current and non-current as per the company's normal operating cycle and other criteria set out in the schedule III of the Companies Act 2013. Based on the nature of service/ operations. The company has ascertained it's operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

1.2 Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations during the period under review. Although these estimates are based upon the Managements best knowledge of current events and actions, actual results could differ from these estimates.

1.3 Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price, expenses incidental to the installation of the assets, cost of bringing the asset to its working condition for its intended use and attributable borrowing costs. Capital Work-in Progress comprises cost of fixed assets that are not yet ready for their intended use as at the balance sheet date. Intangible assets are recorded at the consideration paid for their acquisition.

1.4 Depreciation / Amortization:

a. Tangible assets :

i. Tangible assets are stated at cost of acquisition (including incidental expenses), less accumulated depreciation.

ii Assets held for sale or disposals are stated at the lower of their net book value and net realizable value.

b. Depreciation on Tangible assets

Depreciation on tangible assets is charged on Straight Line Method (SLM) in accordance with the useful lives specified in Schedule II to the Companies Act, 2013 on a pro-rata basis except for following assets in respect of which useful life is taken as estimated by the management based on the actual usage pattern of the assets

i. Poly house and Land development cost has been depreciated over a period of ten years

ii. The cost of leasehold land at Doddaballapur plant is being amortized over 99 years

iii. Depreciation on additions/deletions during the year has been provided for on pro-rata basis. Assets purchased/installed during the year costing less than Rs.5,000/- each are fully depreciated.

c. Intangible assets :

Intangible assets are stated at cost less accumulated amortization and impairment loss, if any.

d. Amortization of Intangible assets:

i. Intangible assets comprises of computer software which is amortized over the estimated useful life. The maximum period for such amortization is taken as 36 months based on management's estimates of useful life.

ii. Intangible assets are depreciated over the license period or estimated useful life in the range of 3 to 6 years, whichever is lower

iii. Product development costs are amortized over a period of 84 months.

The Company has revised depreciation rates on fixed assets effective April 1, 2014 in accordance with requirement of schedule II of Companies Act 2013 ("the Act"). The remaining useful life has been revised by adopting standard useful life as per the Companies Act, 2013. Consequent upon such change the depreciation amounting to Rs.90.78 lakhs (net of deferred tax of Rs. 8.91 lakhs) has been adjusted against reserves in respect of assets which have already completed their useful lives before April 2014 and for other assets depreciation has been charged based on their remaining useful life. Had the company continued with the previously assessed useful lives, the charge for depreciation would have been lower by Rs.93.77 lakhs and Rs. 353 Lakhs for the quarter and year ended 31st March 2015 respectively.

1.5 Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost, except for other than temporary diminution in value, if any, are provided for.

1.6 Inventories:

a. Inventories comprises of Raw Material, Stores, Spares and Consumables, Packing Materials, Finished Goods and Foundation Seeds.

b. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

c. The method of valuation of various categories of inventories is as follows:

(i) Stock in trade, raw materials, stores, spares, consumables, and packing materials are valued at lower of cost and net realizable value on FIFO basis. Materials and other items held for use in the production of inventories are written down below cost if the resulting finished products are not expected to be sold at or above cost.

(ii) Finished Goods and Work-in-Progress are valued at lower of cost and net realizable value. Cost includes direct materials and labour expenses and apportionment of manufacturing overheads based on normal operating capacity determined using the retail method. Cost also includes a portion of the research expenses which in the opinion of the management attribute to the development of these seeds.

(iii)Foundation seeds which are meant for production are valued at cost. (Refer Note No. 35.1)

1.7 Employee Benefits:

a. Post-employment benefit plans

Contribution to defined contributory retirement benefit schemes are recognized as an expense when employees have rendered services entitling them to contributions. For defined benefit schemes, the cost of providing benefits is determined using the Project Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet Date. Actuarial gains and losses are recognized in full in the Statement of Profit and Loss for the period in which they occur.

b. Short Term Employee Benefits:

The amount payable on account of short term employee benefits comprising largely of salaries and wages, annual bonus/ incentives etc. is valued on an undiscounted basis and charged to the Statement of profit &loss for the year.

c. Other long term Employee Benefits: The employees are entitled to accumulate leave subject to certain limits for future availment. The liabilities for such compensated absence are provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation.

1.8 Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

a. Sale of Goods:

Revenue from sale of goods is recognized when significant risk and rewards of the ownership of the goods have passed to the buyer which generally coincides with dispatch of goods to the customer and when there is no significant uncertainty regarding the consideration that will be derived from the sale of goods.

b. Interest Income:

Interest Income is recognized on a time proportionate basis taking into account the amount outstanding and the rate applicable.

1.9 Research And Development:

Revenue expenditure is charged to the Statement of Profit and Loss. Fixed Assets utilized for research activities are capitalized and depreciated in accordance with the policies stated for tangible fixed assets and in tangible fixed assets.

1.10 Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalized as part of the cost of asset up to the date such asset is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are charged to the Statement of Profit and Loss in the year in which they are incurred.

1.11 Taxation:

a. Current Tax:

Provision for current taxation has been made in accordance with the Income Tax laws applicable to the assessment year.

b. Minimum Alternative Tax (MAT):

In case the company is liable to pay income tax u/s 115JB of income tax Act,1961 ( MAT), the amount of tax paid in excess of normal income tax is recognized as an asset (MAT Credit Entitlement) only if there is convincing evidence for realization of such asset during the specified period. M AT credit entitlement is reviewed at each balance sheet date.

c. Deferred Tax:

The deferred tax asset and deferred tax liability is calculated by applying tax rate that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each balance sheet date the carrying amount of deferred tax assets are reviewed.

1.12 Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment of the carrying amount of the Company's assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. The recoverable amount is greater of the net selling price or value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash generating unit to which the asset belongs.

1.13 Foreign Currency Transactions:

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are restated at the exchange rate prevalent on the Balance Sheet date and gain/ loss on such restatement is charged to the Statement of Profit and Loss.

1.14 Leases:

Assets acquired on lease where a significant portion of the risks and rewards of the ownership are retained by the lessor are classified as operating lease. Lease rentals are charged off to the Statement of Profit and Loss on straight line basis on the lease term as incurred.

1.15 Earnings per Share:

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period adjusted for the effects of all dilutive potential equity shares is considered.

1.16 Provisions and contingent liabilities:

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined as best estimates required settling the obligation at the Balance Sheet date.

Contingent Liabilities are disclosed by way of notes to accounts in case of:

a. A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle that obligation;

b. A present obligation when no reliable estimate is possible; and

c. A possible obligation arising from past events where the probability of outflow of resources is remote.

Contingent Assets are not recognized in the financial statements.


Mar 31, 2014

1 Basis of Accounting:

The financial statements are prepared under the historic cost convention, on accrual basis of accounting and as per applicable Notified Accounting Standards laid down in Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

The accounting policies adopted by the company are consistent with those of the previous year.

2 Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations during the period under review. Although these estimates are based upon the Managements best knowledge of current events and actions, actual results could differ from these estimates.

3 Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price, expenses incidental to the installation of the assets, cost of bringing the asset to its working condition for its intended use and attributable borrowing costs. Capital Work-in Progress comprises cost of fixed assets that are not yet ready for their intended use as at the balance sheet date. Intangible assets are recorded at the consideration paid for their acquisition.The Product development cost incurred on development of new products arc recognized as fixed asset (Intangible work in progress) when feasibility has been established, the company has committed technical, financial & other resources to complete the development and it is probable that the asset will generate probable future benefits. On completion of development such costs are disclosed as intangible assets.

4 Depreciation/Amortization:

The Company provides depreciation on fixed assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Poly house has been depreciated over a period of ten years. Intangible assets are depreciated over the license period or estimated useful life in the range of 3 to 6 years, whichever is lower. Depreciation on additions/deletions during the year has been provided for on pro-rata basis. Assets purchased/installed during the year costing less than Rs.5,000/- each are fully depreciated.

Amortization on Leasehold improvements has been done in proportion to the period of lease. Land development cost is being amortized over 10 years.

Product development costs are amortized over a period of 84 months.

5 Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost, except for other than temporary diminution in value, if any, are provided for.

6 Inventories:

a. Inventories comprises of Raw Material, Stores, Spares and Consumables, Packing Materials, Finished Goods and Foundation Seeds.

b. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

c. The method of valuation of various categories of inventories is as follows:

(i) Stock in trade, raw materials, stores, spares, consumables, and packing materials are valued at lower of cost and net realizable value on FIFO basis. Materials and other items held for use in the production of inventories are written down below cost if the resulting finished products are not expected to be sold at or above cost.

(ii) Finished Goods and Work-in-Progress are valued at lower of cost and net realizable value. Cost includes direct materials and labour expenses and apportion of manufacturing overheads based on normal operating capacity determined using the retail method. Cost also includes a portion of the research expenses which in the opinion of the management attribute to the development of these seeds.

(iii) Foundation seeds which are meant for production arc valued at cost. (Refer Note No. 26.1)

7 Employee Benefits:

a. Post-employment benefit plans

Contribution to defined contributory retirement benefit schemes are recognized as an expense when employees have rendered services entitling them to contributions. For defined benefit schemes, the cost of providing benefits is determined using the Project Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet Date. Actuarial gains and losses are recognized in full in the Statement of Profit and Loss for the period in which they occur.

b, Short Term Employee Benefits: The amount payable on account of short term employee benefits comprising largely of salaries and wages, annual bonus/ incentives etc. is valued on an undiscounted basis and charged to the Statement of profit &loss for the year.

c. Other long term Employee Benefits: The employees are entitled to accumulate leave subject to certain limits for future availment. The liabilities for such compensated absence are provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation.

8 Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

a. Sale of Goods:

Revenue from sale of goods is recognized when significant risk and rewards of the ownership of the goods have passed to the buyer which generally coincides with dispatch of goods to the customer and when there is no significant uncertainty regarding the consideration that will be derived from the sale of goods.

b. Interest Income:

Interest Income is recognized on a time proportionate basis taking into account the amount outstanding and the rate applicable.

9 Research And Development:

Revenue expenditure is charged to Statement of Profit and Loss in the year in which it is incurred.

10 Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalized as part of the cost of asset up to the date such asset is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are charged to the Statement of Profit and Loss in the year in which they are incurred.

11 Taxation:

a. Current Tax:

Provision for current taxation has been made in accordance with the Income Tax laws applicable to the assessment year.

b. Minimum Alternative Tax (MAT):

In case the company is liable to pay income tax u/s 115JB of income tax Act, 1961 ( MAT), the amount of tax paid in excess of normal income tax is recognized as an asset (MAT Credit Entitlement) only if there is convincing evidence for realization of such asset during the specified period. MAT credit entitlement is reviewed at each balance sheet date.

c. Deferred Tax:

The deferred tax asset and deferred tax liability is calculated by applying tax rate that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each balance sheet date the carrying amount of deferred tax assets are reviewed.

12 Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment of the carrying amount of the Company''s assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. The recoverable amount is greater of the net selling price or value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash generating unit to which the asset belongs,

13 Foreign Currency Transactions:

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are restated at the exchange rate prevalent on the Balance Sheet date and gain/ loss on such restatement is charged to the Statement of Profit and Loss.

14 Operating Leases:

Assets acquired on lease where a significant portion of the risks and rewards of the ownership are retained by the lessor are classified as operating lease. Lease rentals are charged off to the Statement of Profit and Loss on straight line basis on the lease term as incurred.

15 Earnings per Share:

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity'' shareholders and the weighted average number of shares outstanding during the period adjusted for the effects of all dilutive potential equity shares is considered.

16 Accounting for Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions arc not discounted to present value and are determined as best estimates required settling the obligation at the Balance Sheet date.

Contingent Liabilities are disclosed by way of notes to accounts in case of:

a. A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle that obligation;

b. A present obligation when no reliable estimate is possible; and

c. A possible obligation arising from past events where the probability of outflow of resources is remote.

Contingent Assets are not recognized in the financial statements.


Mar 31, 2013

1.1 Basis of Accounting:

The financial statements are prepared under the historic cost conversion, on the basis of a going concern and as per applicable Notified Accounting Standards laid down in Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956. The Company follows mercantile system of accounting and recognizes Income and Expenditure on accrual basis. The accounting policies have been diligently applied by the Company and are consistent with those used in the previous year.

1.2 Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations during the period under review. Although these estimates are based upon the Managements best knowledge of current events and actions, actual results could differ from these estimates.

1.3 Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price, expenses incidental to the installation of the assets, cost of bringing the asset to its working condition for its intended use and attributable borrowing costs. Capital Work-in Progress comprises cost of fixed assets that are not yet ready for their intended use as at the balance sheet date. Intangible assets are recorded at the consideration paid for their acquisition.

1.4 Depreciation / Amortization:

The Company provides depreciation on fixed assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except in the case of Poly House which has been depreciated over the period of ten years. Depreciation on additions/deletions during the year has been provided for on pro-rata basis. Assets purchased/installed during the year costing less than Rs.5,000/- each are fully depreciated.

Amortization on Leasehold improvements has been done in proportion to the period of lease.

1.5 Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost.

1.6 Inventories:

a. Inventories comprises of Raw Material, Stores, Spares and Consumables, Packing Materials, Work-in Process including foundation seeds and Finished Goods.

b. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

c. The method of valuation of various categories of inventories is as follows:

(i) Raw Materials, stores, spares, consumables, and packing materials are valued at lower of cost and net realizable value on FIFO basis. However, materials and other items held for use in the production of inventories are not written down below cost if the resulting finished products are expected to be sold at or above cost.

(ii) Work-in-Progress and Finished Goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour expenses and aproportion of manufacturing overheads based on normal operating capacity determined on standard cost basis. Cost also includes a portion of the research expenses which in the opinion of the management attribute to the development of these seeds.

1.7 Employee Benefits:

a. Post-employment benefit plans

Contribution to defined contributory retirement benefit schemes are recognized as an expense when employees have rendered services entitling them to contributions. For defined benefit schemes, the cost of providing benefits is determined using the Project Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet Date. Actuarial gains and losses are recognized in full in the profit and loss account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise it is amortized on straight-line basis over the average period until the benefits become eligible for being vested.

b. Short Term Employee Benefits: The amount payable on account of short term employee benefits comprising largely of salaries and wages, annual bonus is valued on an undiscounted basis and charged to the profit &loss account for the year.

1.8 Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

a. Sale of Goods:

Revenue from sale of goods is recognized when significant risk and rewards of the ownership of the goods have passed to the buyer which generally coincides with dispatch of goods to the customer and when there is no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

b. Interest Income:

Interest Income is recognized on a time proportionate basis taking into account the amount outstanding and the rate applicable.

1.9 Research And Development:

Research and Development expenditure relating to capital items is debited to fixed assets and depreciated at the applicable rates. Revenue expenditure is charged to Profit and Loss account in the year in which it is incurred.

1.10 Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalized as part of the cost of asset up to the date such asset is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are charged to Profit and Loss Account in the year in which they are incurred.

1.11 Taxation:

a. Current Tax:

Provision for current taxation has been made in accordance with the Income Tax laws applicable to the assessment year.

b. Minimum Alternative Tax (MAT):

In case the company is liable to pay income tax u/s 115JB of income tax Act,1961 ( MAT), the amount of tax paid in excess of normal income tax is recognized as an asset (MAT Credit Entitlement) only if there is convincing evidence for realization of such asset during the specified period. MAT credit entitlement is reviewed at each balance sheet date.

c. Deferred Tax:

The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each balance sheet date the carrying amount of deferred tax assets are reviewed to reassure realization.

1.12 Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment of the carrying amount of the Company''s assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. The recoverable amount is greater of the net selling price or value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash generating unit to which the asset belongs.

1.13 Foreign Currency Transactions:

Foreign currency transactions are dealt with in accordance with the Accounting Standard 11 "The Effects of Changes in Foreign Exchange Rates".

1.14 Operating Leases:

Assets acquired on lease where a significant portion of the risks and rewards of the ownership are retained by the lessor are classified as operating lease. Lease rentals are charged off to the Profit & Loss Account as incurred.

1.15 Earnings per Share:

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit 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.

1.16 Accounting for Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined as best estimates required settling the obligation at the Balance Sheet date.

Contingent Liabilities are disclosed by way of notes to accounts in case of:

a. A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle that obligation;

b. A present obligation when no reliable estimate is possible; and

c. A possible obligation arising from past events where the probability of outflow of resources is remote. Contingent Assets are not recognized in the financial statements.


Mar 31, 2012

1.1 Basis of Accounting:

The financial statements are prepared under the historic cost conversion, on the basis of a going concern and as per applicable Notified Accounting Standards laid down in Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956. The Company follows mercantile system of accounting and recognizes Income and Expenditure on accrual basis. The accounting policies have been diligently applied by the Company and are consistent with those used in the previous year.

1.2 Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations during the period under review. Although these estimates are based upon the Managements best knowledge of current events and actions, actual results could differ from these estimates.

1.3 Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price, expenses incidental to the installation of the assets, cost of bringing the asset to its working condition for its intended use and attributable borrowing costs. Capital Work-in Progress comprises cost of fixed assets that are not yet ready for their intended use as at the balance sheet date. Intangible assets are recorded at the consideration paid for their acquisition.

1.4 Depreciation / Amortization:

The Company provides depreciation on fixed assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions/deletions during the year has been provided for on pro-rata basis. Assets purchased/installed during the year costing less than Rs.5, 000/- each are fully depreciated. Amortization on Leasehold improvements has been done in proportion to the period of lease.

1.5 Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost.

1.6 Inventories:

a. Inventories comprises of Raw Material, Stores, Spares and Consumables, Packing Materials, Work-in Process including foundation seeds and Finished Goods.

b. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

c. The method of valuation of various categories of inventories is as follows:

(i) Raw Materials, stores, spares, consumables, and packing materials are valued at lower of cost and net realizable value on FIFO basis. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

(ii) Work-in-Progress and Finished Goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour expenses and appropriation of manufacturing overheads based on normal operating capacity determined on standard cost basis. Cost also includes a portion of the research expenses which in the opinion of the management attribute to the development of these seeds.

1.7 Employee Benefits:

a. Post-employment benefit plans

Contribution to defined contributory retirement benefit schemes are recognized as an expense when employees have rendered services entitling them to contributions. For defined benefit schemes, the cost of providing benefits is determined using the Project Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet Date. Actuarial gains and losses are recognized in full in the profit and loss account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise it is amortized on straight-line basis over the average period until the benefits become eligible for being vested.

b. Short Term Employee Benefits: The amount payable on account of short term employee benefits comprising largely of salaries and wages, annual bonus is valued on an undiscounted basis and charged to the profit &loss account for the year.

1.8 Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

a. Sale of Goods:

Revenue from sale of goods is recognized when significant risk and rewards of the ownership of the goods have passed to the buyer which generally coincides with dispatch of goods to the customer and when there is no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

b. Interest Income:

Interest Income is recognized on a time proportionate basis taking into account the amount outstanding and the rate applicable.

c. Dividend Income:

Dividend from Investment is recognized when the right to receive payment is established.

1.9 Research and Development:

Research and Development expenditure relating to capital items is debited to fixed assets and depreciated at the applicable rates. Revenue expenditure is charged to Profit and Loss account in the year in which it is incurred.

1.10 Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalized as part of the cost of asset up to the date such asset is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are charged to Profit and Loss Account in the year in which they are incurred.

1.11 Taxation:

a. Current Tax:

Provision for current taxation has been made in accordance with the Income Tax laws applicable to the assessment year.

b. Minimum Alternative Tax (MAT):

In case the company is liable to pay income tax u/s 115JB of income tax Act,1961 ( MAT), the amount of tax paid in excess of normal income tax is recognized as an asset (MAT Credit Entitlement) only if there is convincing evidence for realization of such asset during the specified period. MAT credit entitlement is reviewed at each balance sheet date.

c. Deferred Tax:

The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each balance sheet date the carrying amount of deferred tax assets are reviewed to reassure realization.

1.12 Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment of the carrying amount of the Company's assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. The recoverable amount is greater of the net selling price or value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash generating unit to which the asset belongs.

1.13 Foreign Currency Transactions:

Foreign currency transactions are dealt with in accordance with the Accounting Standard 11 "The Effects of Changes in Foreign Exchange Rates", notified by the Companies (Accounting Standards) Rules, 2006.

1.14 Operating Leases:

Assets acquired on lease where a significant portion of the risks and rewards of the ownership are retained by the lessor are classified as operating lease. Lease rentals are charged off to the Profit & Loss Account as incurred.

1.15 Earnings per Share:

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit 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.

1.16 Accounting for Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined as best estimates required settling the obligation at the Balance Sheet date.

Contingent Liabilities are disclosed by way of notes to accounts in case of:

a. A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle that obligation;

b. A present obligation when no reliable estimate is possible; and

c. A possible obligation arising from past events where the probability of outflow of resources is remote.

Contingent Assets are not recognized in the financial statements.


Mar 31, 2011

1) Basis of Accounting :

The financial statements are prepared under the historic cost conversion, on the basis of a going concern and as per applicable Notified Accounting Standards laid down in Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956. The Company follows mercantile system of accounting and recognizes Income and Expenditure on accrual basis. The accounting policies have been diligently applied by the Company and are consistent with those used in the previous year.

2) Use of estimates :

The preparation of financial statements in conformity with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations during the period under review. Although these estimates are based upon the Management's best knowledge of current events and actions, actual results could differ from these estimates.

3) Fixed Assets :

Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price, expenses incidental to the installation of the assets, cost of bringing the asset to its working condition for its intended use and attributable borrowing costs. Capital Work-in-Progress comprises of advances paid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use as at the Balance Sheet date. Intangible assets are recorded at the consideration paid for their acquisition.

4) Depreciation / Amortization :

1. The Company provides depreciation on Fixed Assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions/deletions during the year has been provided for on pro-rata basis. Assets purchased/installed during the year costing less than Rs.5,000/ - each are fully depreciated.

2. Amortization on Leasehold improvements has been done in proportion to the period of lease.

5) Investments :

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost.

6) Inventories :

a. Inventories comprises of Raw Materials, Stores, Spares and Consumables, Packing Materials, Work-in-Progress including Foundation Seeds and Finished Goods.

b. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

c. The method of valuation of various categories of inventories is as follows :

(i) Raw Materials, stores, spares, consumables, and packing materials are valued at lower of cost and net realizable value on FIFO basis. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

(ii) Work-in-Progress and Finished Goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of seeds is determined on standard cost basis.

7) Employee Benefits :

a. Post-employment benefit plans :

Contribution to defined contributory retirement benefit schemes are recognized as an expense when employees have rendered services entitling them to contributions. For defined benefit schemes, the cost of providing benefits is determined using the Project Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet Date. Actuarial gains and losses are recognized in full in the Profit and Loss Account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise it is amortized on straight-line basis over the average period until the benefits become eligible for being vested.

b. Short Term Employee Benefits :

The amount payable on account of short term employee benefits comprising largely of salaries and wages, annual bonus is valued on an undiscounted basis and charged to the Profit and Loss Account for the year.

8) Revenue Recognition :

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

a. Sale of Goods :

Revenue from sale of goods is recognized when significant risk and rewards of the ownership of the goods have passed to the buyer which generally coincides with dispatch of goods to the customer and when there is no significant uncertainty existing regarding the amount of the consideration that will be derived from the sale of goods.

b. Interest Income :

Interest Income is recognized on a time proportionate basis taking into account the amount outstanding and the rate applicable.

c. Dividend Income :

Dividend from Investment is recognized when the right to receive payment is established.

9) Research And Development :

Research and Development expenditure relating to capital items is debited to fixed assets and depreciated at the applicable rates. Revenue expenditure is charged to Profit and Loss Account in the year in which it is incurred.

10) Borrowing Costs :

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalized as part of the cost of asset up to the date such asset is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are charged to Profit and Loss Account in the year in which they are incurred.

11) Taxation :

a. Current Tax :

Provision for current taxation has been made in accordance with the Income Tax laws applicable to the assessment year.

b. Minimum Alternative Tax (MAT) :

In case the Company is liable to pay income tax u/s 115JB of Income Tax Act,1961 (i.e. MAT), the amount of tax paid in excess of normal income tax is recognized as an asset (MAT Credit Entitlement), only if there is convincing evidence for realization of such asset during the specified period. MAT credit entitlement is reviewed at each Balance Sheet date.

c. Deferred Tax :

The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date the carrying amount of deferred tax assets are reviewed to reassure realization.

12) Impairment of Assets :

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment of the carrying amount of the Company's assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. The recoverable amount is greater of the net selling price or value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

13) Foreign Currency Transactions :

Foreign currency transactions are dealt with in accordance with the Accounting Standard 11 "The Effects of Changes in Foreign Exchange Rates", notified by the Companies (Accounting Standards) Rules, 2006.

14) Operating Leases :

Assets acquired on lease where a significant portion of the risks and rewards of the ownership are retained by the Lessor are classified as operating lease. Lease rentals are charged off to the Profit & Loss Account as incurred.

15) Earnings per Share :

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit 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.

16) Accounting for Provisions, Contingent Liabilities and Contingent Assets :

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined as best estimates required settling the obligation at the Balance Sheet date.

Contingent Liabilities are disclosed by way of notes to accounts in case of :

a. a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle that obligation ;

b. a present obligation when no reliable estimate is possible; and

c. a possible obligation arising from past events where the probability of outflow of resources is remote. Contingent Assets are not recognized in the financial statements.


Mar 31, 2010

1) Basis of Accounting:

The financial statements are prepared under the historic cost conversion, on the basis of a going concern and as per applicable Notified Accounting Standards laid down in Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956. The Company follows mercantile system of accounting and recognizes Income and Expenditure on accrual basis. The accounting policies have been diligently applied by the Company and are consistent with those used in the previous year.

2) Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations during the period under review. Although these estimates are based upon the Managements best knowledge of current events and actions, actual results could differ from these estimates.

3) Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price, expenses incidental to the installation of the assets, cost of bringing the asset to its working condition for its intended use and attributable borrowing costs. Capital Work-in Progress comprises of advances paid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use as at the balance sheet date. Intangible assets are recorded at the consideration paid for their acquisition.

4) Depreciation / Amortization:

The Company provides depreciation on fixed assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except Foundation Seeds which is amortized over a period of ten years. Depreciation on additions/deletions during the year has been provided for on pro-rata basis. Assets purchased/installed during the year costing less than Rs.5,000/- each are fully depreciated.

5) Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost.

6) Inventories:

a. Inventories comprises of Raw Materials, Stores, Spares and Consumables, Packing Materials, Work-in Progress and Finished Goods.

b. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

c. The method of valuation of various categories of inventories is as follows:

i) Raw Materials, stores, spares, consumables, and packing materials are valued at lower of cost and net realizable value on FIFO basis. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

ii) Work-in-Progress and Finished Goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of seeds is determined on standard cost basis.

7) Employee Benefits:

a. Post-employment benefit plans

Contribution to defined contributory retirement benefit schemes are recognized as an expense when employees have rendered services entitling them to contributions. For defined benefit schemes, the cost of providing benefits is determined using the Project Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet Date. Actuarial gains and losses are recognized in full in the profit and loss account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise it is amortized on straight-line basis over the average period until the benefits become eligible for being vested.

b. Short Term Employee Benefits: The amount payable on account of short term employee benefits comprising largely of salaries and wages, annual bonus is valued on an undiscounted basis and charged to the Profit & Loss Account for the year.

8) Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

a. Sale of Goods:

Revenue from sale of goods is recognized when significant risk and rewards of the ownership of the goods have passed to the buyer which generally coincides with dispatch of goods to the customer and when there is no significant uncertainty existing regarding the amount of the consideration that will be derived from the sale of goods.

b. Interest Income:

Interest Income is recognized on a time proportionate basis taking into account the amount outstanding and the rate applicable.

c. Dividend Income:

Dividend from Investment is recognized when the right to receive payment is established.

9) Research And Development:

Research and Development expenditure relating to Capital items is debited to fixed assets and depreciated at the applicable rates. Revenue expenditure is charged to Profit and Loss Account in the year in which it is incurred.

10) Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalized as part of the cost of asset up to the date such asset is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are charged to Profit and Loss Account in the year in which they are incurred.

11)Taxation:

a. Current Tax:

Provision for current taxation has been made in accordance with the Income Tax laws applicable to the assessment year.

b. Minimum Alternative Tax (MAT):

In case the Company is liable to pay Income Tax u/s 115JB of Income Tax Act,1961 (i.e. MAT), the amount of tax paid in excess of normal income tax is recognized as an asset (MAT Credit Entitlement) only if there is convincing evidence for realization of such asset during the specified period. MAT credit entitlement is reviewed at each balance sheet date.

c. Deferred Tax:

The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual

certainty of its realization supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each balance sheet date the carrying amount of deferred tax assets are reviewed to reassure realization.

12)Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment of the carrying amount of the Companys assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. The recoverable amount is greater of the net selling price or value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

13)Foreign Currency Transactions:

Foreign currency transactions are dealt with in accordance with the Accounting Standard 11 “The Effects of Changes in Foreign Exchange Rates”, notified by the Companies (Accounting Standards) Rules, 2006.

14)Operating Leases:

Assets acquired on lease where a significant portion of the risks and rewards of the ownership are retained by the Lessor are classified as operating lease. Lease rentals are charged off to the Profit & Loss Account as incurred.

15)Earnings per Share:

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit 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.

16)Accounting for Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined as best estimates required to settle the obligation at the Balance Sheet date.

Contingent Liabilities are disclosed by way of notes to accounts in case of:

a. A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle that obligation;

b. A present obligation when no reliable estimate is possible; and

c. A possible obligation arising from past events where the probability of outflow of resources is remote. Contingent Assets are not recognized in the financial statements.

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