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Accounting Policies of Naturite Agro Products Ltd. Company

Mar 31, 2015

I. Basis of Preparation of Financial Statements:

The Financial statements have been prepared under the historical cost convention on accrual basis. The mandatory applicable accounting standards as prescribed under Section 133 of in the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 have been followed in preparation of these financial statements.

II. 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 amount of 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.

III. Revenue Recognition:

Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of products are transferred to customers. Revenue from domestic sales of products is recognized on dispatch of products.

Interest accrues on the time basis, determined by the amount outstanding and the rate applicable.

IV. Fixed Assets:

Fixed assets are recognized at cost of acquisition and installation less accumulated depreciation. The cost comprises purchase price, fright, duties, levies, borrowing cost and directly attributable cost of bringing the assets to their working condition for intended use. Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance or extend its estimated useful life.

V. Depreciation:

Depreciation on fixed assets is provided on straight-line method by using the lives of assets given in Schedule II of the Companies Act, 2013.

With Effective from April 01, 2014, the Company has reviewed and revised the useful life of fixed assets, generally in accordance with the provisions of the Schedule II to the Companies Act, 2013 for the purpose of providing depreciation on its fixed assets and based on the transitional provision provided in note 7(b) of Schedule II, the carrying value of assets which has completed its depreciation period (useful life) as on 1st April 2014 amounting is Rs. 45,601 has been charged to the statement of Profit and loss account.

VI. Valuation of Inventories:

Inventories are valued at the lower of cost (or) net realizable value.

Cost is arrived at by using FIFO method and includes all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

VII. Tax Expense:

Deferred tax resulting from "Timing Difference" between book Profit and taxable Profit is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

Provision is made for current tax as per the applicable provisions of Income Tax Act, 1961.


Mar 31, 2014

I. Basis of Preparation of Financial Statements:

Financial statements have been prepared and presented under historical cost convention in accordance with the accounting principles generally accepted in India having due regard to fundamental accounting assumptions of going concern, consistency and accrual and comply with the Accounting Standards referred to in Sec.211 (3C) of the Companies Act, 1956(''the Act'') which as per a clarification issued by the Ministry of Corporate affairs continue to apply under section 133 of the Companies Act 2013 ( which has superseded section 211(3c) of the Companies Act 1956 w.e.f 12 September 2013) as applicable and with the relevant provisions of the Companies Act, 1956. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

II. Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires management to make prudent and reasonable estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and the results of operations during the year. Difference between the actual results and estimates are recognized in the period in which the results are known or materialized.

III. Revenue Recognition:

Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of products are transferred to customers. Revenue from domestic sales of products is recognized on dispatch of products. Revenue from products is stated inclusive of duties, taxes but exclusive of returns, and applicable trade discounts and allowances.

Interest accrues on the time basis, determined by the amount outstanding and the rate applicable.

IV. Fixed Assets:

Fixed assets are carried at cost of acquisition less accumulated depreciation.

Cost includes non-refundable taxes, duties, freight, borrowing costs and other incidental expenses related to the acquisition and installation of the respective assets.

Fixed assets which are found to be not usable or retired from active use or when no further benefits are expected from their use are removed from the books of account and the difference if any, between the cost of such assets and the accumulated depreciation thereon is charged to Statement of Profit & Loss.

V. Depreciation:

Depreciation on fixed assets under Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

VI. Valuation of Inventories:

Inventories are valued at the lower of cost and net realizable value.

Cost is arrived at by using weighted average method and includes all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. In the case of finished goods and process stocks, appropriate share of labour, overheads and excise duty is included.

VII. Tax Expense:

Deferred tax resulting from "Timing Difference" between book profit and taxable profit is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

Provision is made for tax on Income is as per the applicable provisions of Income Tax Act, 1961.

VIII. Foreign Exchange Transactions:

Transactions denominated in foreign currency are accounted for initially at the exchange rate prevailing on the date of transaction. The Outstanding liabilities are translated at the yearend rates. The resulting gain or Loss is adjusted to Profit and Loss account. Any gain or losses arising due to exchange differences arising on translation or settlement are accounted for in the statement of profit or Loss.

IX. Other Notes to Accounts and Disclosures I Related party disclosures (AS-18):

i. Key Management Personnel: Dr. G Vallabh Reddy , Managing Director

Mrs. C. Vandana Reddy, Director NATURITE AGRO PRODUCTS LLC

IV. Contingent Liabilities and commitments - (AS-29):

a. Contingent Liabilities:

i) Guarantees and letters of credit: Nii

ii) Bank Guarantees: Rs. Nil

VII. Other Disclosures:-

The Previous year''s figures have been regrouped and recast wherever necessary to bring them in line


Mar 31, 2013

A. Basis of accounting

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting and in accordance with Generally Accepted Accounting Principles (''GAAP'') in India and comply in all material respects with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 to the extent applicable and in accordance with provisions of the Companies Act 1956.

b. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported accounts of revenues and expenses for the years presented. Actual results could differ from these estimates.

c. Fixed assets

Fixed assets are stated at their original cost of acquisition / installation less accumulated depreciation. Cost includes purchase price and all other attributable costs of bringing the assets to working condition for intended use.

d. Depreciation

Depreciation on fixed assets is provided on straight line basis at the rates specified in Schedule XIV to the Companies Act, 1956.

e. Investments

There are NO Long term investments.

f. Inventories

Inventories comprise raw material, work-in-progress, fnished goods and related accessories & equipments and are valued at the lower of cost and net realisable value.

g. Sales

Revenue from sale of goods is recognized when significant risk and rewards in respect of ownership of products are transferred to customers.

h. Interest Income

Interest income on term deposits is accounted for on accrual basis over the period of deposits.

i. Taxation

Income tax comprises current tax and deferred tax. Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.

j. Provision for Retirement benefits

Contribution to Defined scheme i.e. provident fund scheme is charged to Profit & loss account. Provision for Gratuity has not been made and will be accounted for on payment basis.

k. Earnings per share

The earnings considered in ascertaining the Company''s EPS comprises the net Profit after tax.


Mar 31, 2012

A. Basis of accounting

The financial statements are prepared under the historical cost convention, on the accrual basis of accounting and in accordance with Generally Accepted Accounting Principles (''GAAP'') in India and comply in all material respects with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 to the extent applicable and in accordance with provisions of the Companies Act 1956.

b. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting poli- cies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the f- nancial statement and the reported accounts of revenues and expenses for the years presented. Actual results could differ from these estimates.

c. Fixed assets

Fixed assets are stated at their original cost of acquisition / installation less accumulated de- preciation. Cost includes purchase price and all other attributable costs of bringing the assets to working condition for intended use.

d. Depreciation

Depreciation on fixed assets is provided on straight line basis at the rates specifed in Schedule XIV to the Companies Act, 1956.

e. Investments

There are NO Long term investments.

f. Inventories

Inventories comprise raw material, work-in-progress, fnished goods and related accessories & equipments and are valued at the lower of cost and net realisable value.

g. Sales

Revenue from sale of goods is recognized when signifcant risk and rewards in respect of owner- ship of products are transferred to customers.

h. Interest Income

Interest income on term deposits is accounted for on accrual basis over the period of deposits.

i. Taxation

Income tax comprises current tax and deferred tax. Deferred tax assets and liabilities are rec- ognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substan- tively enacted by the Balance Sheet date.

j. Provision for Retirement benefits

Contribution to Defined scheme i.e. provident fund scheme is charged to Profit & loss account. Provision for Gratuity has not been made and will be accounted for on payment basis.

k. Earnings per share

The earnings considered in ascertaining the Company''s EPS comprises the net Profit after tax.

 
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