Mar 31, 2016
Note: 21 SIGNIFICANT ACCOUNTI NG POLICIES & NOTES TO THE ACCOUNTS
A- SIGNIFICANT ACCOUNTING POLICIES
1 Basis of Accounting
The financial statements are prepared under the historical cost convention on the concept of a going g 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.
2 Changes in Accounting policies
The accounting policies adopted are consistent with those of previous financial year. The management assures that there has been no change in accounting policies as compared to that of previous year which would have any significant effect on these financials.
3 Recognise it on of Income Sales represents invoiced Value of goods Sold. Other Income is recognised and accounted for on accrual basis unless otherwise stated.
4 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.
4 (A) - Depreciation on tangible fixed assets
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
4 (B) - Depreciation of Land:
The deprecation on organic virgin land structure has been provided on the basis of remaining period of the lease as at the end of year on the WDV amount and addition made thereto.
5 Taxes on Income
Current tax is determined and provided for on the amount of taxable income at the applicable rates for the relevant financial year. Deferred Tax Assets and Liabilities (DTA/ DTL) are recognised, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and is capable of reversal in one or more subsequent periods. The DTA is recognised only to the extent that there is reasonable certainty of sufficient future profits against which such DTA can be realised.
6 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.
7 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.
Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the year/ period attribute table to equity share holder by the weighted average number of equity shares outstanding during the year/ period.
9 Use of estimates
The preparation of financial statements, in conformity with generally accepted accounting principles, requires management not 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.
10 Foreign Currency Transactions
Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the t transaction. Monetary items denominated in foreign currencies at the yearend are translated at the rate ruling at the yearend rate.
11 Balance Confirmations
Loans and Advances, Unsecured Loans, non-current assets and current liabilities are subject to confirmations. We have sent the balance confirmation requests to them and some of them have sent back their confirmation till now.
12 Loan Repayable On Demand
The Company has given/ taken some loans and advance which is on demand in the normal course of business. Such Loans / advances are carrying no interest in pursuance of the agreements done with the parties.
13 On the basis of a technical opinion obtained from an expert, we have not made any provision for retirement benefits in a view that Payment of Gratuity Act 1972 is not applicable to the company and hence it is outside the scope. Further in view of the closing leave a balance of the employees which is NIL, the provisioning was not required under the provision for leave encashment hence no provision has been made.
B- NOTES TO THE ACCOUNTS
1) The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.
2) All the investments made by the company are valued at Cost.
3) Managerial Remuneration: 336,000.00
The inventories of agriculture produce (Finished) are valued at 90% of their net realizable value and Agriculture Produce (semi finished) are valued at 75% of their net realizable value.
5) Deferred tax arising on account of timing difference and which are capable of reversal in one or mo re subsequent periods is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are recognised unless there is virtual certainty with respect to the reversal of the same in future years.
6) Depreciation on Fixed Assets (Except Land) is provided to the extent of depreciable amount on the Written down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. The deprecation on organic virgin land structure has been provided on the basis of remaining period of the lease as at the end of year on the WDV amount and addition made thereto.
7) All schedules annexed to and from integral part of the Balance Sheet and Profit & Loss Account.
8) Minimum Alternative Tax (MAT) is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that company will pay normal Income Tax during the specified period.
Mar 31, 2013
I) The accounts of the Company are prepared under historical c ost convention using the accrual method of accounting except otherwise stated in accordance with normally accepted accounting principles.
ii) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles followed by the company.
iii) Fixed assets are stated at their original cost of acqisition and subsequemt improvement thereon including taxes, freight and other incidental expenses related to acquisition/ construction and installation of the assets concerned.
iv) The depreciation on Fixed Assets (except land) has been provided on written down value method as the rate specified in schedule XIV of the Companies Act,1956. The depreciation of assets, addition/deduction during the year is charged with reference
to the date of addition/deduction of the assets.The depreciation on organic virgin land structure has been provided on the basis of the remaining period of the lease as at the year end.
The inventories of agriculture produce(Finished) are valued at 90% of their net realizab le value and Agriculture Produce (
v) semi finished) are valued at 75% of their net realizable value.
vi) Sales are accounted for at thhe time of passage of title of the goods, which generally coincides with their delivery.
vii) As the company is engaged in growing and selling agriculture produce, such income is exempt from income tax. Accordingly, there are no deferred tax assets/liabilities arising there from.