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Accounting Policies of Genera Agri Corp Ltd. Company

Mar 31, 2014

1.1 Basis of preparation of financial statements:

These financial statements have been prepared on historical cost conventions on accrual basis to comply in all material respects with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

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 amount of assets, liabilities, revenue and expenses and disclosure of contingent liabilities as of the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon the management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from estimates and assumptions used in preparing these financial statements.

1.3 Fixed Assets and Depreciation:

i) Fixed Assets are stated at cost less accumulated depreciation, impairment losses and specific grant/subsidies, if any. Cost comprise of purchase price, freight, duties, taxes and any attributable cost of bringing the asset to its working condition for its intended use.

ii) Assets retired from active use and held for disposal are stated at their estimated net realizable values or net book values whichever is lower.

iii) The carrying amount of fixed assets are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed the estimated recoverable amount, assets are written down to their recoverable amount.

iv) Depreciation is provided on straight line basis as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.4 Valuation of Inventories:

Inventories are valued at or net realizable value whichever is less. The cost includes Purchase Price and Freight.

1.5 Recognition of Income and Expenditure:

Revenue from Sale of goods is recognized when:

i) The Property in goods have been transferred to the buyer for a price or all significant risks and rewards of ownership have been transferred to the buyer.

ii) No Significant uncertainty exits regarding the amount of the consideration that will be derived from the sale of the goods.

Items of income and expenditure are recognized on accrual basis.

1.6 Taxes on income:

Current tax is determined on the income for the year chargeable to tax in accordance with Income tax Act, 1961. Deferred tax liability is recognized for all timing differences. Deferred tax assets are recognized subject to consideration of prudence. Deferred tax arising on account of timing differences is recognized using the tax rates and tax laws that have enacted or subsequently enacted.

1.7 Investments:

Long term investments are valued at cost less provision for diminution, other than temporary, if any.

1.8 Foreign currency transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. At the year-end, all monetary assets and liabilities denominated in foreign currency are restated at the year-end exchange rates. Exchange differences arising on actual payment/realization and year end re-instatement referred to above are recognized in the Profit & Loss Account

1.9 Retirement Benefits:

i. Retirement benefits in the form of Provident fund is a defined contribution scheme and the contributions are charged to the Profit & Loss Account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective authorities.

ii. Gratuity and Leave Encashment are defined benefit obligation and is provided for on the basis of an actuarial valuation on project unit credit method.

iii. Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method.

iv. Actuarial gain/losses are taken to profit and loss account and are not deferred.

1.10 Borrowing Cost:

Specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

1.11 Research and Development Expenses:

Expenditure of capital nature is recognized as fixed assets and depreciated at the applicable rates. Revenue expenditures are charged to profit and loss account in the year in which they are incurred.

1.12 Contingencies:

Loss arising from claims, litigation, assessments, fines, penalties, etc. is provided for when it is probable that a liability may be incurred, and the amount can be reasonably estimated.

1.13 Provisions:

A provision is recognized when an enterprise has a present obligation as a result of past event; 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 its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

1.14 Intangible Assets:

The Preliminary Expenditure, Trade Marks and Advertisement Expenditure incurred by the company have been charged to Profit & Loss Account in the year of incurrence in accordance with AS-26 (Intangible Assets).


Mar 31, 2013

1.1 Basis of preparation of financial statements:

These financial statements have been prepared on historical cost conventions on accrual basis to comply in all material respects with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

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 amount of assets, liabilities, revenue and expenses and disclosure of contingent liabilities as of the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon the management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from estimates and assumptions used in preparing these financial statements.

1.3 Fixed Assets and Depreciation:

i) Fixed Assets are stated at cost less accumulated depreciation, impairment losses and specific grant / subsidies, if any. Cost Comprise of purchase price, freight, duties, taxes and any attributable cost of bringing the asset to its working condition for its intended use.

ii) Assets retired from active use and held for disposal are stated at their estimated''net realizable values or net book values whichever is lower.

iii) The carrying amount of fixed assets are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed the estimated recoverable amount, assets are written down to their recoverable amount.

iv) Depreciation is provided on straight line basis as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.4 Depreciation on Fixed Assets:

1.4.1 Depreciation on fixed assets is provided on straight-line method ai the rates and in the manner prescribed in

Schedule XIV of the Companies Act, 1956 or at higher rates as stated below.

1.5 Valuation of Inventories:

Inventories are valued at or net realizable value whichever is less. The cost includes Purchase Price and Freight.

1.6 Recognition of Income and Expenditure:

Revenue from Sale of goods is recognized when:

I) The Property in goods have been transferred to the buyer for a price or all significant risks and rewards of ownership have been transferred to the buyer.

ii) No Significant uncertainty exits regarding the amount of the consideration that will be derived from the sale of the goods.

Items of income and expenditure are recognized on accrual basis.

1.7 Taxes on income:

Current tax is determined on the income for the year chargeable to tax in accordance with Income tax Act, 1961. Deferred tax liability is recognized for all timing differences. Deferred tax assets are recognized subject to consideration of prudence. Deferred tax arising on account of timing differences is recognized using the tax rates and tax laws that have enacted or subsequently enacted.

1.8 Investments:

Long term investments are valued at cost less provision for diminution, other than temporary, if any.

1.9 Foreign currency transactions:

i Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. At the year-end, all monetary assets and liabilities denominated in foreign currency are restated at the year-end exchange rates. Exchange differences arising on actual payment / realization and year end re-instatement referred to above are recognized in the Profit & Loss Account

1.10 Retirement Benefits:

I. Retirement benefits in the form of Provident fund is a defined contribution scheme and the contributions are charged to the Profit & Loss Account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective authorities.

ii. Gratuity and Leave Encashment are defined benefit obligation and is provided for on the basis of an actuarial valuation on project unit credit method.

iii. Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method.

iv. Actuarial gain/losses are taken to profit and loss account and are not deferred.

1.11 Borrowing Cost:

Specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

1.12 Research and Development Expenses:

Expenditure of capital nature is recognized as fixed assets and depreciated at the applicable rates. Revenue expenditures are charged to profit and loss account in the year in which they are incurred.

1.13 Contingencies:

Loss arising from claims, litigation, assessments, fines, penalties, etc. is provided for when it is probable that a liability may be incurred, and the amount can be reasonably estimated.

1.14 Provisions:

A provision is recognized when an enterprise has a present obligation as a result of past event; 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 its present vaue and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

1.15 Intangible Assets:

The Preliminary Expenditure, Trade Marks and Advertisement Expenditure incurred by the company have been charged to Profit & Loss Account in the year of incurrence in accordance with AS-26 (Intangible Assets).


Mar 31, 2012

1.1 Basis of preparation of financial statements:

These financial statements have been prepared on historical cost conventions on accrual basis to comply in all material respects with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

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 amount of assets, liabilities, revenue and expenses and disclosure of contingent liabilities as of the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon the management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from estimates and assumptions used in preparing these financial statements.

1.3 Fixed Assets and Depreciation:

i) Fixed Assets are stated at cost less accumulated depreciation, impairment losses and specific grant/subsidies, if any. Cost comprise of purchase price, freight, duties, taxes and any attributable cost of bringing the asset to its working condition for its intended use.

ii) Assets retired from active use and held for disposal are stated at their estimated net realizable values or net book values whichever is lower.

Hi) The carrying amount of fixed assets are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed the estimated recoverable amount, assets are written down to their recoverable amount.

iv) Depreciation is provided on straight line basis as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.4 Depreciation on Fixed Assets:

1.4.1 Depreciation on fixed assets is provided on straight-line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 or at higher rates as stated below.

1.5 Valuation of Inventories:

Inventories are valued at cost or net realizable value whichever is less. The cost includes Purchase Price and Freight.

1.6 Recognition of Income and Expenditure:

Revenue from Sale of goods is recognized when:

i) The Property in goods have been transferred to the buyer for a price or all significant risks and rewards of ownership have been transferred to the buyer.

ii) No Significant uncertainty exits regarding the amount of the consideration that will be derived from the sale of the goods.

Items of income and expenditure are recognized on accrual basis.

1.7 Taxes on income:

Current tax is determined on the income for the year chargeable to tax in accordance with Income tax Act, 1961. Deferred tax liability is recognized for all timing differences. Deferred tax assets are recognized subject to consideration of prudence. Deferred tax arising on account of timing differences is recognized using the tax rates and tax laws that have enacted or subsequently enacted.

1.8 Investments:

Long term investments are valued at cost less provision for diminution, other than temporary, if any.

1.9 Foreign currency transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. At the year-end, all monetary assets and liabilities denominated in foreign currency are restated at the year-end exchange rates. Exchange differences arising on actual payment/ realization and year end re- instatement referred to above are recognized in the Profit & Loss Account

1.10 Retirement Benefits:

i. Retirement benefits in the form of Provident fund is a defined contribution scheme and the contributions are charged to the Profit & Loss Account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective authorities.

ii. Gratuity and Leave Encashment are defined benefit obligation and is provided for on the basis of an actuarial valuation on project unit credit method.

iii. Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method.

iv. Actuarial gain/losses are taken to profit and loss account and are not deferred.

1.11 Borrowing Cost:

Specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

1.12 Research and Development Expenses:

Expenditure of capital nature is recognized as fixed assets and depreciated at the applicable rates. Revenue expenditures are charged to profit and loss account in the year in which they are incurred.

1.13 Contingencies:

Loss arising from claims, litigation, assessments, fines, penalties, etc. is provided for when it is probable that a liability may be incurred, and the amount can be reasonably estimated.

1.11 Borrowing Cost:

Specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

1.12 Research and Development Expenses:

Expenditure of capital nature is recognized as fixed assets and depreciated at the applicable rates. Revenue expenditures are charged to profit and loss account in the year in which they are incurred.

1.13 Contingencies:

Loss arising from claims, litigation, assessments, fines, penalties, etc. is provided for when it is probable that a liability may be incurred, and the amount can be reasonably estimated.

1.14 Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; 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 its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

1.15 Intangible Assets

The Preliminary Expenditure, Trade Marks and Advertisement Expenditure incurred by the company have been charged to Profit & Loss Account in the year of incurrence in accordance with AS-26 (Intangible Assets).


Mar 31, 2011

A) Basis of preparation of financial statements:

These financial statements have been prepared on historical cost conventions on accrual basis to comply in all material respects with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

b) 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 amount of assets, liabilities, revenue and expenses and disclosure of contingent liabilities as of the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon the management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from estimates and assumptions used in preparing these financial statements.

c) Fixed Assets and Depreciation:

i) Fixed Assets are stated at cost less accumulated depreciation, impairment losses and specific grant / subsidies, if any. Cost comprise of purchase price, freight, duties, taxes and any attributable cost of bringing the asset to its working condition for its intended use.

ii) Assets retired from active use and held for disposal are stated at their estimated net realizable values or net book values whichever is lower.

iii) The carrying amount of fixed assets are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed the estimated recoverable amount, assets are written down to their recoverable amount.

iv) Depreciation is provided on straight line basis as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

d) Valuation of Inventories:

Inventories are valued at cost or net realizable value whichever is less. The cost includes Purchase Price and Freight.

e) Recognition of Income and Expenditure:

Revenue from Sale of goods is recognized when:

i) The Property in goods have been transferred to the buyer for a price or all significant risks and rewards of ownership have been transferred to the buyer.

ii) No Significant uncertainty exits regarding the amount of the consideration that will be derived from the sale of the goods.

Items of income and expenditure are recognized on accrual basis.

f) Taxes on income:

Current tax is determined on the income for the year chargeable to tax in accordance with Income tax Act, 1961. Deferred tax liability is recognized for all timing differences. Deferred tax assets are recognized subject to consideration of prudence. Deferred tax arising on account of timing differences is recognized using the tax rates and tax laws that have enacted or subsequently enacted.

g) Investments:

Long term investments are valued at cost less provision for diminution, other than temporary, if any.

h) Foreign currency transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. At the year-end, all monetary assets and liabilities denominated in foreign currency are restated at the year-end exchange rates. Exchange differences arising on actual payment / realization and year end re-instatement referred to above are recognized in the Profit & Loss Account

i) Retirement Benefits:

i. Retirement benefits in the form of Provident fund is a defined contribution scheme and the contributions are charged to the Profit & Loss Account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective authorities.

ii. Gratuity and Leave Encashment are defined benefit obligation and is provided for on the basis of an actuarial valuation on project unit credit method.

iii. Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method.

iv. Actuarial gain/losses are taken to profit and loss account and are not deferred.

j) Borrowing Cost:

Specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

k) Research and Development Expenses:

Expenditure of capital nature is recognized as fixed assets and depreciated at the applicable rates. Revenue expenditures are charged to profit and loss account in the year in which they are incurred.

l) Contingencies:

Loss arising from claims, litigation, assessments, fines, penalties, etc. is provided for when it is probable that a liability may be incurred, and the amount can be reasonably estimated.

m) Earnings Per Share

In computing earnings per share, the company considers the net profit or loss after tax for the year attributable to the equity shareholders. Basic Earnings per share are computed using the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the basis as basic EPS, after adjusting for the effect of potential delusive equity shares and their corresponding effect on the net profit for the equity shareholders.

n) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; 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 its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

o) Intangible Assets

The Preliminary Expenditure, Trade Marks and Advertisement Expenditure incurred by the company have been charged to Profit & Loss Account in the year of incurrence in accordance with AS-26 (Intangible Assets).

 
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