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Accounting Policies of Eco Friendly Food Processing Park Ltd. Company

Mar 31, 2015

1.1 Basis of Accounting

The financial statements are prepared under the historical cost convention on the concept of a going concern, in accordance with the Generally Accepted Accounting Principles and mandatory Accounting Standards as notified under Rule 7 of the Companies (Accounts) Rules, 2014 which is similar to provisions and presentational requirements of the Companies Act, 2013.

1.2 Recognition of Income

Sales represent invoiced Value of goods Sold. Other Income is recognised and accounted for on accrual basis unless otherwise stated.

1.3 Tangible Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use. 1.3(a). Depreciation

Depreciation on Fixed Assets (except Land) is provided to the extent of depreciable amount on the Written Down Value (WDV) Method. Depreciation is provided (Except Land) based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. As certified by the Management Depreciation on Development of Land to organic farming is to be provided equally over the period of ten years.

1.4 Contingent Liability

The contingent liabilities, if any, are disclosed in the Notes to Accounts. Provision is made in the accounts, if it becomes probable that there will be outflow of resources for settling the obligation.

1.5 Events occurring after the balance sheet date

Adjustments to assets and liabilities are made for events occurring after the balance sheet date to provide additional information materially affecting the determination of the amounts of assets or liabilities relating to conditions existing at the balance sheet date.

1.6 Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year/ period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year/ period.

1.7 Use of estimates

The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities on the date of the financial statements and the results of operations during the reporting year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

1.8 Foreign Currency Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Monetary items denominated in foreign currencies at the year end are translated at the rate ruling at the year end rate.

Mar 31, 2014

I) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles followed by the company.

ii) Fixed assets are stated at their original cost of acquisition and subsequent improvement thereon including taxes

Freight and other incidental expenses related to acquisition/construction and installation of the assets concerned.

The depreciation on Fixed Assets (except land) has been provided on written down value method as the rate v) specified inSchedule XIV of the Companies Act,1956. The depreciation of assets, addition/deduction during the year is charged withReference to the date of addition/deduction of the assets.

The inventories of agriculture produce(Finished) are valued at 90% of their net realizable value and Agriculture

v) Produce

(Semi-finished) which includes poplar & other wood trees are valued at 75% of their net realizable value.

vi) Sales are accounted for at the time of passage of title of the goods, which generally coincides with their delivery.

As the company is engaged in growing and selling agriculture produce, such income is exempt from income tax.

vii) Accordingly, there are no deferred tax assets/liabilities arising there from.

Oct 27, 12:00 am
Oct 27, 4:14 pm
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