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Accounting Policies of Goodricke Group Ltd. Company

Dec 31, 2014

1.1 CONVENTION

The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards, notified u/s 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as ammended] and the relevant provisions of the Companies Act, 1956 and/or the notified sections of Companies Act, 2013, to the extent applicable. A summary of important accounting policies which have been applied consistently, are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956 of India.

1.2 BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the historical cost convention and on accrual basis. All assets and liabilities have been classified as current or non current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act 1956. The Company has ascertained its operating cycle as twelve months for the purpose of current and non current classification of assets and liabilities.

1.3 FIXED ASSETS

1.3.1 TANGIBLE

Fixed assets are stated at cost of acquisition together with any incidental expenses of acquisition.

Depreciation on fixed assets other than Livestock and Estate & Development has been provided on Written Down value method in accordance with Schedule XIV of the Companies Act, 1956. Estate & Development is not depreciated. Livestock is expensed over its useful life.

All expenditure incurred for extension of new areas of cultivation are capitalised. However, cost of upkeep and maintenance and cost of replanting in existing areas are charged to revenue.

Subsidies from Government in respect of fixed assets are deducted from the cost of respective assets.

Profit or Loss on disposal of Fixed Assets is recognised in the Statement of Profit and Loss.

1.3.2 INTANGIBLE

Cost of software is capitalised where it is expected to provide future enduring economic benefits. Capitalisation costs include licence fees and cost of implementation / system integration services. The costs are capitalised in the year in which the relevant software is implemented for use. Expenses incurred on upgradation / enhancements is charged off as revenue expenditure unless they bring similar significant additional benefits.

Capitalised software costs is amortised on a straight line basis over a period of five years.

1.3.3 IMPAIRMENT OF FIXED ASSETS

An impairment loss is recognised where applicable, when the carrying value of the fixed assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

1.4 INVESTMENTS

Long Term Investments are stated at cost and where applicable, provision is made in case of other than temporary diminution in value of investments.Current investments are stated at lower of cost or fair value.

1.5 INVENTORIES

Inventories are valued at lower of cost and net realisable value. Cost is determined on weighted average basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their location and condition and includes appropriate overheads. Provision is made for obsolete and slow moving stocks where necessary.

1.6 RESEARCH AND DEVELOPMENT

Research and Development Expenditure of revenue nature is charged to the Statement of Profit and Loss and capital expenditure is treated as fixed assets.

1.7 RETIREMENT BENEFITS

The Company operates defined contribution schemes like Provident Fund and defined Contribution Pension Schemes.

The Company makes regular contribution to provident funds which are fully funded and administered by Government and are independent of Company''s finance. Contributions are recognized in Statement of Profit and Loss on an accrual basis. The Company operates a non contributory defined contribution pension scheme for certain employees. The Company contributes 15% of the employees'' current salary to the above contribution fund which is recognised in the Statement of Profit and Loss.

The Company also operates defined benefit Provident Fund Schemes for certain employees which are fully funded and administered by trustees and are independent of the Company''s finance .The Company makes regular contributions to the fund and shortfall if any,determined by annual actuarial valuation, is recognized in the Statement of Profit and Loss.

Defined Benefit Gratuity Plan is maintained by the company for all its eligible employees. The Company also operates a Non Contributory Defined Benefit Pension Scheme for certain employees. The Company contributes to such funds on the basis of actuarial valuation at the end of each year after setting off any net asset in respect of either fund. Both the Pension Fund and gratuity fund are administered by the Trustees and is independent of the Company''s finance.

For Schemes where recognized funds have been set up annual contributions determined as payable in the actuarial valuation report are contributed. Actuarial gains & losses are recognized in the Statement of Profit and Loss. The Company recognizes in the Statement of Profit and Loss gains or losses on curtailment or settlement of a defined benefit plan as and when the curtailment or settlement occurs.

Post retirement medical benefits are provided by the Company for certain category of employees. Liability is determined through independent year end actuarial valuation and is recognized in the Statement of Profit and Loss. Provision is made for retirement leave encashment benefit payable to employees on the basis of independent actuarial valuation, at the end of each year and charge is recognized in the Statement of Profit and Loss.

1.8 SALES

Sales represent the invoiced value of goods supplied less Sales Tax / Value Added Tax.

1.9 INCOME FROM INVESTMENTS

Income from investments is included together with the related tax credit in the Statement of Profit and Loss.

1.10 REPLANTING AND OTHER SUBSIDIES

Replanting and other subsidies of revenue nature are recognised as income in the Statement of Profit and Loss.

1.11 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded in rupees by applying the exchange rate prevailing on the date of transaction. Transactions remaining unsettled are translated at the rate of exchange ruling at the end of the year. Exchange gain or loss arising on settlement/translation is recognised in the Statement of Profit and Loss.

Premium or discount on forward contracts are amortised as expense or income over the life of the contract. Foreign exchange forward contracts are revalued at the balance sheet date and the exchange difference is recognised as gain/loss in the Statement of Profit and Loss. Profit or Loss on cancellations/renewals of forward contracts is recognised in the Statement of Profit and Loss.

1.12 TAXES ON INCOME

Current tax represents the amount computed as per prevailing taxation laws under the Income Tax Act, 1961. Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets have been recognized where there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.13 BORROWING COSTS

Borrowing cost attributable to acquisition and/or construction of qualifying assets are capitalised as a part of the cost of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charged to Statement of Profit and Loss.

1.14 LEASES

Lease Payments under the Operating Lease are recognised as an expense in the Statement of Profit and Loss, on a systematic basis.

1.15 PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability.

1.16 USE OF ESTIMATES

The preparation of financial statements is in conformity with Indian GAAP requires the management to make judgements, estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in the future periods. Any revision to accounting estimates is recognised prospectively in the current and future periods.

1.17 EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.


Dec 31, 2013

I CONVENTION

The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards, notified u/s 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and the relevant provisions of the Companies Act, 1956 or / and the notified sections of Companies Act, 2013, to the extent applicable. A summary of important accounting policies which have been applied consistently, are set out below. Financial Statements have also been , prepared in accordance with relevant presentational requirements of the Companies Act, 1956 of India.

1 BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the historical cost convention and on accrual basis.

All assets and liabilities have been classified as current or non current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act 1956. The Company has ascertained its operating cycle as twelve months for the purpose of current and non current classification of assets and liabilities.

2 FIXED ASSETS 131 TANGIBLE

Fixed assets are stated at cost of acquisition together with any incidental expenses of acquisition.

Depreciation on fixed assets other than Livestock and Estate & Development has been provided on Written Down value method in accordance with Schedule XIV of the Companies Act, 1956. Estate & Development is not depreciated. Livestock is expensed over its useful life,

All expenditure incurred for extension of new areas of cultivation are capitalised. However, cost of upkeep and maintenance and cost of replanting in existing areas are charged to revenue.

Subsidies from Government in respect of fixed assets are deducted from the cost of respective assets. Profit or Loss on disposal of Fixed Assets is recognised in the Statement of Profit and Loss.

3 INTANGIBLE

Cost of software is capitalised where it is expected to provide future enduring economic benefits. Capitalisation costs include licence fees and cost of implementation / system integration services. The costs are capitalised in the year in which the relevant software is implemented for use. Expenses incurred on upgradation / enhancements are charged off as revenue expenditure unless they bring similar significant additional benefits.

Capitalised software costs is amortised on a straight line basis over a period of five years.

4 IMPAIRMENT OF FIXED ASSETS

An impairment loss is recognised where applicable, when the carrying value of the fixed assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

5 INVESTMENTS

Long Term Investments are stated at cost and where applicable, provision is made in case of other than temporary diminution in value of investments. Current investments are stated at lower of cost or fair value.

6 INVENTORIES

Inventories are valued at lower of cost and net realisable value. Cost is determined on weighted average basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their location and condition and includes appropriate overheads. Provision is made for obsolete and slow moving stocks where necessary.

7 RESEARCH AND DEVELOPMENT

Research and Development Expenditure ol revenue nature is charged to the Statement of Profit and Loss and capital expenditure is treated as fixed assets.

8 RETIREMENT BENEFITS

The Company operates defined contribution schemes like Provident Fund and defined Contribution Pension Schemes.

The Company makes regular contribution to provident funds which are fully funded and administered by Government and are independent of Company''s finance. Contributions are recognized in Statement of Profit and Loss on an accrual basis. The Company operates a non contributory defined contribution pension scheme for certain employees. The Company contributes 15% of the employees'' current salary to the above contribution fund which is recognised in the Statement of Profit and Loss.

The Company also operates defined benefit Provident Fund Schemes for certain employees which are fully funded and administered by trustees and are independent of the Company''s finance. The Company makes regular contributions to the fund and shortfall, if any, determined by annual actuarial valuation, is recognized in the Statement of Profit and Loss.

Defined Benefit Gratuity Plan is maintained by the company for all its eligible employees. The Company also operates a Non Contributory Defined Benefit Pension Scheme for certain employees. The Company contributes to such funds on the basis of actuarial valuation at the end of each year after setting off any net asset in respect of either fund. Both the Pension Fund and Gratuity Fund are administered by the Trustees and is independent of the Company''s finance.

For Schemes where recognized funds have been set up annual contributions determined as payable in the actuarial valuation report are contributed. Actuarial gains & losses are recognized in the Statement of Profit and Loss. The Company recognizes in the Statement of Profit and Loss gains or losses on curtailment or settlement of a defined benefit plan as and when the curtailment or settlement occurs.

Post retirement medical benefits are provided by the Company for certain category of employees. Liability is determined through independent year end actuarial valuation and is recognized in the Statement of Profit and Loss.

Provision is made for retirement leave encashment benefit payable to employees on the basis of independent actuarial valuation, at the end of each year and charge is recognized in the Statement of Profit and Loss.

9 SALES

Sales represent the invoiced value of goods supplied less Sales Tax / Value Added Tax.

10 INCOME FROM INVESTMENTS

Income from investments is included together with the related tax credit in the Statement of Profit and Loss.

11 REPLANTING AND OTHER SUBSIDIES

Replanting and other subsidies of revenue nature are recognised as income in the Statement of Profit and Loss.


Dec 31, 2012

1.1 CONVENTION

The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards, notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently, are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956 of India.

1.2 BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the historical cost convention.

All assets and liabilities have been classified as current or non current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act 1956. The Company has ascertained its operating cycle as twelve months for the purpose of current and non current classification of assets and liabilities.

1.3 FIXED ASSETS

1.3.1 TANGIBLE

Fixed assets are stated at cost of acquisition together with any incidental expenses of acquisition.

Depreciation on fixed assets other than Livestock and Estate & Development has been provided on Written Down value method in accordance with Schedule XIV of the Companies Act, 1956. Estate & Development is not depreciated. Livestock is expensed over its useful life.

All expenditure incurred for extension of new areas of cultivation are capitalised. However, cost of upkeep and maintenance and cost of replanting in existing areas are charged to revenue.

Subsidies from Government in respect of fixed assets are deducted from the cost of respective assets.

Profit or Loss on disposal of Fixed Assets is recognised in the Statement of Profit and Loss.

1.3.2 INTANGIBLE

Cost of software is capitalised where it is expected to provide future enduring economic benefits. Capitalisation costs include licence fees and cost of implementation / system integration services. The costs are capitalised in the year in which the relevant software is implemented for use. Expenses incurred on upgradation / enhancements is charged off as revenue expenditure unless they bring similar significant additional benefits.

Capitalised software costs is amortised on a straight line basis over a period of five years.

1.3.3 IMPAIRMENT OF FIXED ASSETS

An impairment loss is recognised where applicable, when the carrying value of the fixed assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

1.4 INVESTMENTS

Long Term Investments are stated at cost and where applicable, provision is made in case of other than temporary diminution in value of investments.Current investments are stated at lower of cost or fair value.

1.5 INVENTORIES

Inventories are valued at lower of cost and net realisable value. Cost is determined on weighted average basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their location and condition and includes appropriate overheads. Provision is made for obsolete and slow moving stocks where necessary.

1.6 RESEARCH AND DEVELOPMENT

Research and Development Expenditure of revenue nature is charged to the Statement of Profit and Loss and capital expenditure is treated as fixed assets.

1.7 RETIREMENT BENEFITS

The Company operates defined contribution schemes like Provident Fund and defined Contribution Pension Schemes.

The Company makes regular contribution to provident funds which are fully funded and administered by Government and are independent of Company''s finance. Contributions are recognized in Statement of Profit and Loss on an accrual basis. The Company operates a non contributory defined contribution pension scheme for certain employees. The Company contributes 15% of the employees'' current salary to the above contribution fund which is recognised in the Statement of Profit and Loss.

The Company also operates defined benefit Provident Fund Schemes for certain employees which are fully funded and administered by trustees and are independent of the Company''s finance.The Company makes regular contributions to the fund and shortfall if any,determined by annual actuarial valuation, is recognized in the Statement of Profit and Loss.

Defined Benefit Gratuity Plan is maintained by the company for all its eligible employees. The Company also operates a Non Contributory Defined Benefit Pension Scheme for certain employees. The Company contributes to such funds on the basis of actuarial valuation at the end of each year after setting off any net asset in respect of either fund. Both the Pension Fund and gratuity fund are administered by the Trustees and is independent of the Company''s finance.

For Schemes where recognized funds have been set up annual contributions determined as payable in the actuarial valuation report are contributed. Actuarial gains & losses are recognized in the Statement of Profit and Loss. The Company recognizes in the Statement of Profit and Loss gains or losses on curtailment or settlement of a defined benefit plan as and when the curtailment or settlement occurs.

Post retirement medical benefits are provided by the Company for certain category of employees. Liability is determined through independent year end actuarial valuation and is recognized in the Statement of Profit and Loss. Provision is made for retirement leave encashment benefit payable to employees on the basis of independent actuarial valuation, at the end of each year and charge is recognized in the Statement of Profit and Loss.

1.8 SALES

Sales represent the invoiced value of goods supplied less Sales Tax / Value Added Tax.

1.9 INCOME FROM INVESTMENTS

Income from investments is included together with the related tax credit in the Statement of Profit and Loss.

1.10 REPLANTING AND OTHER SUBSIDIES

Replanting and other subsidies of revenue nature are recognised as income in the Statement of Profit and Loss.

1.11 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded in rupees by applying the exchange rate prevailing on the date of transaction. Transactions remaining unsettled are translated at the rate of exchange ruling at the end of the year. Exchange gain or loss arising on settlement/translation is recognised in the Statement of Profit and Loss.

Premium or discount on forward contracts are amortised as expense or income over the life of the contract. Foreign exchange forward contracts are revalued at the balance sheet date and the exchange difference is recognised as gain/loss in the Statement of Profit and Loss. Profit or Loss on cancellations/renewals of forward contracts is recognised in the Statement of Profit and Loss.

1.12 TAXES ON INCOME

Current tax represents the amount computed as per prevailing taxation laws under the Income Tax Act, 1961. Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets have been recognized where there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.13 BORROWING COSTS

Borrowing cost attributable to acquisition and/or construction of qualifying assets are capitalised as a part of the cost of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charged to Statement of Profit and Loss.

1.14 LEASES

Lease Payments under the Operating Lease are recognised as an expense in the Statement of Profit and Loss, on a straight line basis over the lease term.

1.15 PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability.

1.16 USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgements, estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in the future periods. Any revision to accounting estimates is recognised prospectively in the current and future periods

1.17 EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.


Dec 31, 2011

A) CONVENTION

The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards, notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently, are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956 of India.

b) BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the historical cost convention.

c) FIXED ASSETS

I) TANGIBLE

i) Fixed assets are stated at cost of acquisition together with any incidental expenses of acquisition.

ii) Depreciation on fixed assets other than Livestock and Estate & Development has been provided on Written Down value method in accordance with Schedule XIV of the Companies Act, 1956. Estate & Development is not depreciated. Livestock is expensed over its useful life.

iii) All expenditure incurred for extension of new areas of cultivation are capitalised. However, cost of upkeep and maintenance and cost of replanting in existing areas are charged to revenue.

iv) Subsidies from Government in respect of fixed assets are deducted from the cost of respective assets.

v) Profit or Loss on disposal of Fixed Assets is recognised in the Profit and Loss Account.

II) INTANGIBLE

i) Cost of software is capitalised where it is expected to provide future enduring economic benefits. Capitalisation costs include licence fees and cost of implementation / system integration services. The costs are capitalised in the year in which the relevant software is implemented for use. Expenses incurred on upgradation / enhancements is charged off as revenue expenditure unless they bring similar significant additional benefits.

ii) Capitalised software costs is amortised on a straight line basis over a period of five years.

III) IMPAIRMENT OF FIXED ASSETS

An impairment loss is recognised where applicable, when the carrying value of the fixed assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

d) INVESTMENTS

Long Term Investments are stated at cost and where applicable, provision is made in case of permanent diminution in value of investments. Current investments are stated at lower of cost or fair value.

e) INVENTORIES

Inventories are valued at lower of cost and net realisable value. Cost is determined on weighted average basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their location and condition and includes appropriate overheads. Provision is made for obsolete and slow moving stocks where necessary.

f) RESEARCH AND DEVELOPMENT

Research and Development Expenditure of revenue nature is charged to the Profit and Loss Account and capital expenditure is treated as fixed assets.

g) RETIREMENT BENEFITS

(i) The Company operates defined contribution schemes like Provident Fund and defined Contribution Pension Schemes.

The Company makes regular contribution to provident funds which are fully funded and administered by Government and are independent of Company's finance. Contributions are recognized in Profit & Loss Account on an accrual basis. The Company operates a non contributory defined contribution pension scheme for certain employees. The Company contributes 15% of the employees' current salary to the above contribution fund which is recognised in the Profit & Loss Account.

The Company also operates defined benefit Provident Fund Schemes for certain employees which are fully funded and administered by trustees and are independent of the Company's finance. The Company makes regular contributions to the fund and shortfall if any, arising out of annual actuarial valuation, is recognized in the Profit and Loss Account.

(ii) Defined Benefit Gratuity Plan is maintained by the company for all its eligible employees. The Company also operates a Non Contributory Defined Benefit Pension Scheme for certain employees. The Company contributes to such funds on the basis of actuarial valuation at the end of each year after setting off any net asset in respect of either fund. Both the Pension Fund and gratuity fund are administered by the Trustees and is independent of the Company's finance.

(iii) For Schemes where recognized funds have been set up annual contributions determined as payable in the actuarial valuation report are contributed. Actuarial gains & losses are recognized in the Profit & Loss Account. The Company recognizes in the Profit & Loss Account gains or losses on curtailment or settlement of a defined benefit plan as and when the curtailment or settlement occurs.

(iv) Post retirement medical benefits are provided by the Company for certain category of employees. Liability is determined through independent year end actuarial valuation and is recognized in the Profit & Loss Account.

(v) Provision is made for retirement leave encashment benefit payable to employees on the basis of independent actuarial valuation, at the end of each year and charge is recognized in the Profit and Loss Account.

h) SALES

Sales represent the invoiced value of goods supplied less Sales Tax / Value Added Tax.

i) INCOME FROM INVESTMENTS

Income from investments is included together with the related tax credit in the Profit and Loss Account.

j) REPLANTING AND OTHER SUBSIDIES

Replanting and other subsidies of revenue nature are recognised as income in the Profit and Loss Account.

k) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded in rupees by applying the exchange rate prevailing on the date of transaction. Transactions remaining unsettled are translated at the rate of exchange ruling at the end of the year. Exchange gain or loss arising on settlement/translation is recognised in the Profit and Loss Account.

Premium or discount on forward contracts are amortised as expense or income over the life of the contract. Foreign exchange forward contracts are revalued at the Balance Sheet date and the exchange difference is recognised as gain/loss in the Profit & Loss Account. Profit or Loss on cancellations/renewals of forward contracts is recognised in the Profit and Loss Account.

l) TAXES ON INCOME

Current tax represents the amount computed as per prevailing taxation laws under the Income Tax Act, 1961.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets have been recognized where there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

m) BORROWING COSTS

Borrowing cost attributable to acquisition and/or construction of qualifying assets are capitalised as a part of the cost of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charged to Profit and Loss Account.

n) LEASES

Lease payments under the Operating Lease are recognised as an expense in the Profit & Loss Account, on a straight line basis over the lease term.


Dec 31, 2010

A) CONVENTION

The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards, notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently, are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956 of India.

b) BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the historical cost convention.

C) FIXED ASSETS

I) TANGIBLE

i) Fixed assets are stated at cost of acquisition together with any incidental expenses of acquisition.

ii) Depreciation on fixed assets other than Livestock and Estate & Development has been provided on Written Down value method in accordance with Schedule XIV of the Companies Act, 1956. Estate & Development is not depreciated. Livestock is expensed over its useful life.

iii) All expenditure incurred for extension of new areas of cultivation are capitalised. However, cost of upkeep and maintenance and cost of replanting in existing areas are charged to revenue.

iv) Subsidies from Government in respect of fixed assets are deducted from the cost of respective assets.

v) Profit or Loss on disposal of Fixed Assets is recognised in the Profit and Loss Account.

II) INTANGIBLE

i) Cost of software is capitalised where it is expected to provide future enduring economic benefits. Capitalisation costs include licence fees and cost of implementation / system integration services. The costs are capitalised in the year in which the relevant software is implemented for use. Expenses incurred on upgradation / enhancements is charged off as revenue expenditure unless they bring similar significant additional benefits

ii) Capitalised software costs is amortised on a straight line basis over a period of five years.

III) IMPAIRMENT OF FIXED ASSETS

An impairment loss is recognised where applicable, when the carrying value of the fixed assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

d) INVESTMENTS

Long Term Investments are stated at cost and where applicable, provision is made in case of permanent diminution in value of investments.

e) INVENTORIES

Inventories are valued at lower of cost (net of input VAT) and net realisable value. Cost is determined on weighted average basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their location and condition and includes appropriate overheads. Provision is made for obsolete and slow moving stocks where necessary.

f) RESEARCH AND DEVELOPMENT

Research and Development Expenditure of revenue nature is charged to the Profit and Loss Account and capital expenditure is treated as fixed assets.

g) RETIREMENT BENEFITS

(i) The Company operates defined contribution schemes like Provident Fund and defined Contribution Pension Schemes.

The Company makes regular contribution to provident funds which are fully funded and administered by Trustees/Government and are independent of Companys finance. Contributions are recognized in Profit & Loss Account on an accrual basis. The Company operates a non contributory defined contribution pension scheme for certain employees. The Company contributes 15% of the employees current salary to the above contribution fund which is recognised in the Profit & Loss Account.

(ii) Defined Benefit Gratuity Plan is maintained by the company for all its eligible employees. The Company also operates a Non Contributory Defined Benefit Pension Scheme for certain employees. The Company contributes to such funds on the basis of actuarial valuation at the end of each year after setting off any net asset in respect of either fund with effect from 31st December,2010. Both the Pension Fund and gratuity fund are administered by the Trustees and is independent of the Companys finance.

(iii) For Schemes where recognized funds have been set up annual contributions determined as payable in the actuarial valuation report are contributed. Actuarial gains & losses are recognized in the Profit & Loss Account. The Company recognizes in the Profit & Loss Account gains or losses on curtailment or settlement of a defined benefit plan as and when the curtailment or settlement occurs.

(iv) Post retirement medical benefits are provided by the Company for certain category of employees. Liability is determined through independent year end actuarial valuation and is recognized in the Profit & Loss Account.

(v) Provision is made for retirement leave encashment benefit payable to employees on the basis of independent actuarial valuation, at the end of each year and charge is recognized in the Profit and Loss Account.

h) SALES

Sales represent the invoiced value of goods supplied less Sales Tax / Value Added Tax.

i) INCOME FROM INVESTMENTS

Income from investments is included together with the related tax credit in the Profit and Loss Account.

j) REPLANTING AND OTHER SUBSIDIES

Replanting and other subsidies of revenue nature are recognised as income in the Profit and Loss Account.

k) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded in rupees by applying the exchange rate prevailing on the date of transaction. Transactions remaining unsettled are translated at the rate of exchange ruling at the end of the year. Exchange gain or loss arising on settlement/translation is recognised in the Profit and Loss Account.

Premium or discount on forward contracts are amortised as expense or income over the life of the contract. Foreign exchange forward contracts are revalued at the balance sheet date and the exchange difference is recognised as gain/loss in the Profit & Loss Account. Profit or Loss on cancellations/renewals of forward contracts is recognised in the Profit and Loss Account.

I) TAXES ON INCOME

Current tax represents the amount computed as per prevailing taxation laws under the Income Tax Act, 1961.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are recognized where there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

m) BORROWING COSTS

Borrowing cost attributable to acquisition and/or construction of qualifying assets are capitalised as a part of the cost of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charged to Profit and Loss Account.

n) LEASES

Lease Payments under the Operating Lease are recognised as an expense in the Profit & Loss Account, on a straight line basis over the lease term.


Dec 31, 2009

A) CONVENTION

The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards, notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. A summary of important accounting policies which have been applied consistently, are set out below. Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956 of India.

b) BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the historical cost convention.

c) FIXED ASSETS

I) TANGIBLE

i) Fixed assets are stated at cost of acquisition together with any incidental expenses of acquisition.

ii) Depreciation on fixed assets other than Estate and Development has been provided on Written Down value method in accordance with Schedule XIV of the Companies Act, 1956. Estate & Development is not depreciated.

iii) All expenditure incurred for extension of new areas of cultivation are capitalised. However, cost of upkeep and maintenance and cost of replanting in existing areas are charged to revenue.

iv) Subsidies from Government in respect of fixed assets are deducted from the cost of respective assets.

v) Profit or Loss on disposal of Fixed Assets is recognised in the Profit and Loss Account.

II) INTANGIBLE

i) Cost of software is capitalised where it is expected to provide future enduring economic benefits. Capitalisation costs include licence fees and cost of implementation / system integration services. The costs are capitalised in the year in which the relevant software is implemented for use. Expenses incurred on upgradation / enhancements is charged off as revenue expenditure unless they bring similar significant additional benefits.

ii) Capitalised software costs is amortised on a straight line basis over a period of five years.

III) IMPAIRMENT OF FIXED ASSETS

An impairment loss is recognised where applicable, when the carrying value of the fixed assets of a cash generating unit exceeds its net selling price or value in use, whichever is higher.

d) INVESTMENTS

Long Term Investments are stated at cost and where applicable, provision is made in case of permanent diminution in value of investments.

e) INVENTORIES

Inventories are valued at lower of cost (net of input VAT) and net realisable value. Cost is determined on weighted average basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their location and condition and includes appropriate overheads. Provision is made for obsolete and slow moving stocks where necessary.

f) RESEARCH AND DEVELOPMENT

Research and Development Expenditure of revenue nature is charged to the Profit and Loss Account and capital expenditure is treated as fixed assets.

g) RETIREMENT BENEFITS

(i) The Company operates defined contribution schemes like Provident Fund and defined Contribution Pension Schemes.

The Company makes regular contribution to provident funds which are fully funded and administered by Trustees/Government and are independent of Companys finance. Contributions are recognized in Profit & Loss Account on an accrual basis. The Company operates a non contributory defined contribution pension scheme for certain employees. The Company contributes 15% of the employees current salary to the above contribution fund which is recognised in the Profit & Loss Account.

(ii) Defined Benefit Plans like Gratuity and Pension Schemes are also maintained by the company. The Company contributes to gratuity fund and such contribution is determined by the actuary at the end of the year. The Company also operates a non contributory defined benefit pension scheme for certain employees. The Company contributes to the said defined benefit Pension Fund on the basis of actuarial valuation at the end of each year. Both the pension funds and gratuity fund are administered by the Trustees and is independent of the Companys finance.

(iii) For Schemes where recognized funds have been set up annual contributions, determined as payable in the actuarial valuation report, are contributed. Actuarial gains & losses are recognized in the Profit & Loss Account. The Company recognizes in the Profit & Loss Account gains or losses on curtailment or settlement of a defined benefit plan as and when the curtailment or settlement occurs.

(iv) Post retirement medical benefits are provided by the Company for certain category of employees. Liability is determined through independent year end actuarial valuation and is recognized in the Profit & Loss Account.

(v) Provision is made for retirement leave encashment benefit payable to employees on the basis of independent actuarial valuation, at the end of each year and charge is recognized in the Profit and Loss Account.

(vi) Expatriate retired employees pension paid is accounted for in the Profit and Loss Account.

h) SALES

Sales represent the invoiced value of goods supplied less Sales Tax / Value Added Tax.

i) INCOME FROM INVESTMENTS

Income from investments is included together with the related tax credit in the Profit and Loss Account.

j) REPLANTING AND OTHER SUBSIDIES

Replanting and other subsidies of revenue nature are recognised as income in the Profit and Loss Account.

k) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded in rupees by applying the exchange rate prevailing on the date of transaction. Transactions remaining unsettled are translated at the rate of exchange ruling at the end of the year. Exchange gain or loss arising on settlement/translation is recognised in the Profit and Loss Account.

Premium or discount on forward contracts are amortised over the life of the contract. Foreign exchange forward contracts are marked to market at the balance sheet date and the exchange loss if any, is recognised in the Profit & Loss Account.

l) DEFERRED TAXATION

Provision for deferred taxation is made using the liability method, at the current rates of taxation, on all timing differences to the extent that it is probable that a liability or asset will crystallise.

m) BORROWING COSTS

Borrowing cost attributable to acquisition and/or construction of qualifying assets are capitalised as a part of the cost of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charged to Profit and Loss Account.

n) LEASES

Lease Payments under the Operating Lease are recognised as an expense in the Profit & Loss Account, on a straight line basis over the lease term.

 
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