Home  »  Company  »  Nagarjuna Agrite  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Nagarjuna Agritech Ltd. Company

Mar 31, 2014

A) Basis of preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles In India and comply in all material aspects with the applicable Accounting Standards notified under section 211 (3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956 as adopted consistently by the Company.

Accounting policies not specifically referred to otherwise are consistent and In consonance with generally accepted accounting principles followed by the Company.

b) Fixed Assets:

Fixed Assets are valued at historical cost less depreciation. Attributable costs and expenses including borrowing costs for bringing the respective assets to working condition for their Intended use are capitalized.

c) Depreciation:

Depreciation is provided on straight line method as per the rates prescribed under Schedule XIV of the Companies Act, 1956.

d) Valuation of Inventories:

Closing slock of Inventories are valued at lower of cost or net realisable value. Cost has been ascertained on FIFO basis.

e) Revenue Recognition:

Revenue from the sale of grown items is recognised upon passage of the title to the customers which generally consists with the delivery and acceptance thereof

Interest income is recognized on accrual basis.

Operating lease rentals are accounted on mercantile basis as per the terms of the lease agreement.

f) Foreign Exchange transactions:

All foreign currency transactions were initially recognized at the rate on the date of transaction.

Exchange differences arising on the settlement of monetary items were recognized as income/expense.

Monetary items as on the date of Balance Sheet are stated at the closing rate/realistic rate.

g) Cash Flow Statement:

The Cash Flow Statement has been compiled from and is based on the Balance Sheet and the related Statement of Profit and Loss for the year ended on that date. The Cash Flow Statement has been prepared under the indirect method as set out in the Accounting Standard - 3 on Cash Flow Statement issued by ICAI Cash and cash equivalents in the cash flow statement comprise cash at bank, cash/cheques in hand and short term Investments with an original maturity of three months or less.

h) Accounting for Taxes on Income:

Current Tax: Provision for Current Income Tax is made on the basis of the taxable income for the year as determined In accordance with the provisions of Income Tax Act, 1961.

Deferred Tax- Deferred income tax is recognized, 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. The tax effect is calculated on the accumulated timing differences at the year end based on tax rates and laws, enacted or substantially enacted as of the Balance Sheet date.

I) Impairment of Assets:

The Management assesses using external and internal sources whether there is any Indication that an asset may be impaired. Impairment of an asset occurs where the carrying value exceeds the present value of cash flow expected to arise from the continuing use of the asset and Its eventual disposal. The provision for impairment loss is made when recoverable amount of the asset is tower than the carrying mount.

j) Provisions and Contingent Liabilities and Contingent Assets:

Provisions in respect of present obligations arising out of past events are made In the accounts when reliable estimate can be made of the amount of obligations and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but if material, are disclosed in the notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.

k) Operating Lease:

Operating Lease payments are recognized as an expense in the Profit and Loss Statement of the year to which they relate

i) Earnings Per Share:

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after ax by the weighted average number of equity shares considered for deriving basic earnings per share and also the walghtad average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

m) Government Grants:

Air freight subsidy towards reimbursement of Air freight charges/expenses Is deduced from the related expenditure. Capital Subsidy towards reimbursement of capital expenditure Is deducted from the concern capital expenditure.

n) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported revenues and expenses during the reporting period. Difference between toe actual results and estimates are recognised in the period In which the results are known / materialised.


Mar 31, 2013

A) Basis of preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles in India and comply in all material aspects with the applicable Accounting Standards notified under section 211 (3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956 as adopted consistently by the Company.

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

b Fixed Assets:

Fixed Assets are valued at historical cost less depreciation. Attributable costs and expenses including borrowing costs for bringing the respective assets to working condition for their intended use are capitalized.

c) Depreciation:

Depreciation is provided on straight line method as per the rates prescribed under Schedule XIV of the Companies Act, 1956.

d) Valuation of Inventories:

Closing stock of inventories are valued at lower of cost or net realisable value. Cost has been ascertained on FIFO basis.

e) Revenue Recognition:

Revenue from the sale of grown items is recognised upon passage of the title to the customers which generally consists with the delivery and acceptance thereof Interest income is recognized on accrual basis.

Operating lease rentals are accounted on mercantile basis as per the terms of the lease agreement.

f) Foreign Exchange transactions:

All foreign currency transactions were initially recognized at the rate on the date of transaction.

Exchange differences arising on the settlement of monetary items were recognized as income/expense.

Monetary items as on the date of Balance Sheet are stated at the closing rate/realistic rate.

g) Cash Flow Statement:

The Cash Flow Statement has been compiled from and is based on the Balance Sheet and the related Statement of Profit and Loss for the year ended on that date. The Cash Flow Statement has been prepared under the indirect method as set out in the Accounting Standard - 3 on Cash Flow Statement issued by ICAI Cash and cash equivalents in the cash flow statement comprise cash at bank, cash/cheques in hand and short tem investments with an original maturity of three months or less.

h) Accounting for Taxes on Income:

Current Tax: Provision for Current Income Tax is made on the basis of the taxable income for the year as determined in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax: Deferred income tax is recognized, 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. The tax effect is calculated on the accumulated timing differences at the year end based on tax rates and laws, enacted or substantially enacted as of the Balance Sheet date.

i) Impairment of Assets:

The Management assesses using external and internal sources whether there is any indication that an asset may be impaired. Impairment of an asset occurs where the carrying value exceeds the present value of cash flow expected to arise from the continuing use of the asset and its eventual disposal. The provision for impairment loss is made when recoverable amount of the asset is lower than the carrying amount.

j) Provisions and Contingent Liabilities and Contingent Assets:

Provisions in respect of present obligations arising out of past events are made in the accounts when reliable estimate can be made of the amount of obligations and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but if material, are disclosed in the notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.

k) Operating Lease:

Operating Lease payments are recognized as an expense in the Profit and Loss Statement of the year to which they relate

l) Earnings Per Share:

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

m) Government Grants:

Air freight subsidy towards reimbursement of Air freight charges/expenses is deducted from the related expenditure. Capital Subsidy towards reimbursement of capital expenditure is deducted from the concerned capital expenditure.

n) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialised.


Mar 31, 2012

A) Basis of preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles in India and comply in all material aspects with the applicable Accounting Standards notified under section 211 (3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956 as adopted consistently by the Company.

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

b) Fixed Assets:

Fixed Assets are valued at historical cost less depreciation. Attributable costs and expenses including borrowing costs for bringing the respective assets to working condition for their intended use are capitalized.

c) Depreciation:

Depreciation is provided on straight line method as per the rates prescribed under Schedule XIV of the Companies Act, 1956.

d) Valuation of Inventories:

Closing stock of inventories are valued at lower of cost or net realizable value. Cost has been ascertained on FIFO basis.

e) Revenue Recognition:

Revenue from the sale of grown items is recognized upon passage of the title to the customers which generally consists with the delivery and acceptance thereof.

f) Foreign Exchange transactions:

All foreign currency transactions were initially recognized at the rate on the date of transaction. Exchange differences arising on the settlement of monetary items were recognized as income/expense. Monetary items as on the date of Balance Sheet are stated at the closing rate/realistic rate.

g) Cash Flow Statement:

The Cash Flow Statement has been compiled from and is based on the Balance Sheet and the related Statement of Profit and Loss for the year ended on that date. The Cash Flow Statement has been prepared under the indirect method as set out in the Accounting Standard - 3 on Cash Flow Statement issued by ICAI Cash and cash equivalents in the cash flow statement comprise cash at bank, cash/cheques in hand and short term investments with an original maturity of three months or less.

h) Accounting for Taxes on Income:

Current Tax: Provision for Current Income Tax is made on the basis of the taxable income for the year as determined in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax: Deferred income tax is recognized, 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. The tax effect is calculated on the accumulated timing differences at the yearend based on tax rates and laws, enacted or substantially enacted as of the Balance Sheet date.

i) Impairment of Assets:

The Management assesses using external and internal sources whether there is any indication that an asset may be impaired. Impairment of an asset occurs where the carrying value exceeds the present value of cash flow expected to arise from the continuing use of the asset and its eventual disposal. The provision for impairment loss is made when recoverable amount of the asset is lower than the carrying amount.

j) Provisions and Contingent Liabilities and Contingent Assets:

Provisions in respect of present obligations arising out of past events are made in the accounts when reliable estimate can be made of the amount of obligations and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but if material, are disclosed in the notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.

k) Operating Lease:

Operating Lease payments are recognized as an expense in the Profit and Loss Statement of the year to which they relate

l) Earnings Per Share:

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

m) Government Grants:

Air freight subsidy towards reimbursement of Air freight charges/expenses is deducted from the related expenditure. Capital Subsidy towards reimbursement of capital expenditure is deducted from the concerned capital expenditure.

n) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.


Mar 31, 2011

A. Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention on the basis of a going concern and in accordance with generally accepted accounting principles and the provisions of the Companies Act. 1956 and applicable Accounting Standards issued by ICAI as adopted consistently by the company.

Ac-counting policies not specifically referred to otherwise are consistent and In consonance with generally accepted accounting principles followed by the company.

b. Fixed assets

Fixed assets are valued at cost les s depreciation.

c. Depreciation

Depreciation has been provided on straight line method at the rates specified in the schedule XIV of the Companies Act, 1956.

d. Inventories

Closing stocks of inventories are valued at lower of cost or net realisable value. Cost Formula used is on FIFO basis.

e. Foreign currency transactions

Exports invoiced in foreign currency are converted at the exchange rate prevailing on the date of transactions. Gain/ Loss arising out of fluctuation In exchange rates are accounted for on realisation.

Other foreign currency transactions are recognised at the rate on the date of transaction.

Monetary (terns as on the dale of Balance Sheet are stated at the closing rate/realistic rate.

f. Cash Flow Statement

The cash flow statement has been compiled from and is based on the Balance Sheet as at 31st March, 2011 and the related Profit and Loss Account (or Use year ended on that date. The Cash Row Statement has been prepared under the indirect method as set out in the Accounting Standard - 3 on Cash Row Statement issued by ICAI.

g. Revenue Recognition

Revenue from the sale of grown items is recognised upon passage of the title to the customers which generally consists with the delivery and acceptance thereof.

h. Impairment of Assets

The Management assesses using external and internal sources whether there is any indication that an asset may be impaired. Impairment of an asset occurs where the carrying value exceeds the present value of cash flow expected Lo arise from the continuing use of the asset and its eventual disposal. The provision for impairment loss is made when recoverable amount of the asset is lower than the carrying amount.

i. Provisions and Contingent Liabilities and Contingent Assets

Provision s in respect of present obligations arising out of past events are made in the accounts when reliable estimate can be made of the amount of obligations and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but if material, are disclosed in the notes to accounts. Contingent assets are not recognized or disclosed in the financial statements,

j Accounting for Taxes on Income

Current Tax; Pro vision for Current Income Tax is made on the basis of the taxable income for the year as determined in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax: Deferred income tax is recognized, 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. The tax effect is calculated on the accumulated timing differences at the year end based on tax rates and laws, enacted or substantially enacted as of the Balance Sheet date.

k. Government Grants

Air freight subsidy receivable {reimbursement of Air freight charges/expenses) is accounted on mercantile basis and is deducted from the related expenditure.

 
Subscribe now to get personal finance updates in your inbox!