Accounting Policies of Pioneer Agro Extracts Ltd. Company

Mar 31, 2015

A RECOGNITION OF INCOME AND EXPENDITURE :

i) Revenue/Incomes and Costs/Expenditure are generally accounted for on accrual, as they are earned or incurred ii) The Company accounts far excise duty on manufactured goods at their clearance from the factory rather than at the point of manufacture. This has however no impact on the operating results of the Company.

B FIXED ASSETS

Fixed Assets are stated at Cost, less accumulated Depreciation.

C DEPRECIATION AND AMORTISATION

i) Depreciation on Fixed Assets is provided on Written Down Value method on the rates specified in Schedule XIV of the Companies Act, 1956.

ii) In view of the amendment in Schedule XIV, depreciation on assets costing below Rs.5,000/- are depreciated at the rate of hundred percent.

iii) Depreciation on additions to assets or on sale/discernment of assets is calculated on pro-rata from the date of such addition or up to the date of such sale/discernment, as the case may be. iv) Amortized expenses are written of equally over a period of seven years starting with effect from Accounting Year 2005-06, v) Depreciation on amount added to revaluation is charged to Profit & Loss Account.

D VALUATION OF INVENTORIES

Method of valuation

Raw material, Packing material and Consumables At Cost

Finished Goods At Cost or net realizable value which ever is lower

Stock in Process At Cost

Byproducts At net realizable value

Stores and Spares At Cost

The Raw Material, Packing Material and Consumables are valued at cost on FIFO basis.

E EXPENDITURE DURING CONSTRUCTION

i) All indirect expenses including interest on borrowed fund which is attributed to construction or acquisition of Fixed Assets prior to this period is capitalized and added pro-rata to the cost of Building and Plant & Machinery.

ii) The expenses incurred on trial runs are also capitalized and added to the cost of Plant & Machinery.

F RESEARCH AND DEVELOPMENT

Revenue expenditure including overheads on Research and Development is charged out as expenses through the natural heads of accounts in the year in which incurred. Expenditure which results in the creation of capital assets is taken to Fixed Assets and depreciation is provided on such assets as are depreciable.

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Mar 31, 2014

A RECOGNITION OF INCOME ANO EXPENDITURE

i) Revenue/tncomes and Costs/Expendilure are generally accounted for on accrual, as they ore earned or mewed.

ii) The Company accounts for excise duty on manufactured poods at their clearance from the factory rather than at die point cf manufacture This has however no impact on trie operating results of the Company.

B FIXED ASSETS

Fixed Assets are stated at Cost less accumulated Depreciation.

C DEPRECIATION AND AMORTISATION

Depreciation on Fixed Assets is provided on Written Down Value method on the rates specified m Schedule XIV of the Companies Act 1958 If) In vww of the amendment in Schedule XIV, depreciation on assets costing below Rs.5,000/- are depreciated at the rate of hundred percent

i) Depreciation on additions to assets cr on sale/discarcnent of assets is calculated on oro-rata from She dele of such addition or up to the date of Amortised expenses are written of equally over a period of seven yeans.

ii) Depreciation on amount added to revaluation is charged to Prefit & Loss Account.

D VALUATION OF INVENTORIES

Method of valuation At cost

Raw material Packing material and Consumables At Cost

Finished Goods . At Cost or net realisable value which ever is lower

Stock in Process At Cost

By Prcducts . At net realisable value

Stores ana Spares At Cost

The Raw Matenal.Packing Materia! and Consumables are valued al cost on FIFO basis.

EXPENDITURE DURING CONSTRUCTION

i) All indiiect expenses including interest on boircwed fund which is attnbuled to construction or acquisition of Fixed Assets prior to this period is capitalised and added pro-rata to the cost of Building and Plant & Machinery

ii) The expenses incurred on trial runs are also capitalised and added to the cost of Plant & Machinery.

RESEARCH AND DEVELOPMENT

Revenue expenditure including overheads on Research and Development is charged out as expenses through the natural heads ot accounts in the yea'' in which inclined. Expenditure which results in the creation of capftei esseis is taken to Fixed Assets and deprecation is provided en such assets as are depreciable.

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Mar 31, 2010

1. RECOGNITION OF INCOME AND EXPENDITURE:

i) Revenue/Incomes and Costs/Expenditure are generally accounted for on accrual, as they are earned or incurred.

ii) The company accounts for excise duty on manufactured goods at their clearance from the factory rather than at the point of manufacture. This has however no impact on the operating results of the Company.

2. FIXED ASSETS

Fixed Assets are stated at Cost, less accumulated Depreciation.

3. Depreciation and Amortisation

i) Depreciation on Fixed Assets is provided on Written Down value method on the rates specified in Schedule XIV of the Companies Act, 1956.

ii) In view of the amendment in Schedule XIV, depreciation on assets costing below Rs.5000 are depreciated at the rate of hundred percent.

iii) Depreciation on additions to assets or on sale/discardment of assets, is calculated on pro-rata from the date of such addition or up to the date of such sale/discardment, as the case may be.

iv) Amortised Expenses are being written off equally over a period of seven years starting with effect from Accounting Year 2005-06.

v) Depreciation on Amount added on revaluation is charged to Profit & Loss Account.

5. EXPENDITURE DURING CONSTRUCTION:

a) All Indirect expenses including Interest on borrowed fund which is attributed to construction or acquisition of Fixed Assets prior to this period is capitalised and added pro - rata to the cost of Building and Plant & Machinery.

b) The Expenses incurred on Trial runs are also capitalized and added to the cost of Plant & Machinery

6. RESEARCH AND DEVELOPMENT

Revenue expenditure including overheads on Research and Development is charged out as expenses through the natural heads of account in the year in which incurred. Expenditure which results in the creation of capital assets is taken to Fixed Assets and depreciation is provided on such assets as are depreciable.