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Accounting Policies of Pochiraju Industries Ltd. Company

Mar 31, 2015

A) Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 ofthe Companies (Accounts) Rules, 2014.

Management evaluates all recently issued or revised accounting standards on an ongoing basis. The financial statements are prepared under the historical cost convention. Recognition of income and expenses, accrual basis of accounting is followed.

b) Use of Estimates

The preparation of financial statements in conformity with GAAP requires Management to make estimates and assumptions that effect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and intangible assets.

Management periodically assessed using external and internal sources whether there is an indication that an asset may be impaired. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Actual results could differ from those estimates.

c) Revenue recognition

Sale of goods is recognized on transfer of property to the buyers for consideration. Interest on deployment of surplus funds is recognized using the time proportion method, based on interest rates implicit in the transaction.

d) Fixed Assets

i) Fixed Assets are stated at cost of acquisition inclusive of duties (net of Cenvat), taxes, incidental expenses, erection/ commissioning expenses etc. upto the time asset is ready for its intended use.

ii) Capital Work in progress is stated at the expenditure incurred upto the date of the Balance Sheet including capital advances.

iii) The carrying amounts of assets are reviewed at each Balance Sheet date to determine if there is any indication of Impairment based on external/ internal factors. An impairment loss is recognized wherever the carrying amount of the asset exceeds its recoverable amount which represents the greater of the net selling price of assets and their 'value in use'. The estimated future cash flows are discounted to their present value of the weighted average cost of capital.

e) Depreciation

Depreciation on fixed assets has been provided on straight-line method based on useful life of asset specified in Schedule II of the Companies Act, 2013 on pro-rata basis.

f) Investments

Long term investments, if any, are stated and carried at cost. However, unutilized issue proceeds are invested in fixed deposits with the company's bankers.

g) Non-current assets

Expenditure incurred for public issue, pre-operative expenses, market development expenditure and expenditure on research and development will be amortized in over a period of 5 years in equal installments from the year of start of commercial production.

h) ForeignCurrencyTransactions

Foreign Exchange Transactions are recorded at the exchange rates prevailing on the date of transaction and any exchange differences arising on foreign transactions are recognized as income or expense in the year in which they arise.

i) Borrowing costs:

Borrowing costs are charged to profit and loss account except in cases where the borrowings are directly attributable to the acquisition, construction or production of a qualifying asset.

j) Retirement Benefits:

As regards to provident fund benefits, the company makes the stipulated contribution in respect of certain class of employees to regional provident fund authority under which the company's liability is limited to the extent of contribution. Gratuity and leave encashment has been provided based on the actuarial valuation.

k) Taxation:

Current Income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act 1961.

l) Earningspershare:

Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

m) Expenditure during construction period:

The expenditure incidental to the expansion/ new projects is allocated to Fixed Assets in the year of commencement of commercial production. Interest on Loans raised for the expansion/ diversification project is set off against interest earned on unutilized Public issue funds.

n) Raw materials, stores and spare parts, packing materials, finished goods and work in progress are valued at lower of cost and Net realizable value (as certified by the management).

o) Deferred Tax Liability:-

The income from Agro based operations of the company comprises Horticulture and Nursery operations, which is exempted from Income Tax. Hence, Accounting Standard on deferred Tax Liability is not applicable in so far as it relates to the income from its agro based operations. However, for its Bio tech and Pharmaceutical operations, differed liability/ asset can be recognized once the diversification projects are completed.




Mar 31, 2014

A) Basis of Accounting

The accounts are prepared under the Historical Cost Convention. The Company adopts the accrual basis in the preparation of accounts in accordance with the Accounting standards referred to in Section 211(3C) of the Companies Act 1956.

b) Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material aspects with the accounting standards notified under the Companies (Accounting Standard) Rules, 2006, (as amended) and the relevant provisions of the Companies act, 1956,. The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies adopted in preparation of financial statements are consistent with those of previous year.

c) Revenue recognition

Sale of goods is recognized on transfer of property to the buyers for consideration. Interest on deployment of surplus funds is recognized using the time proportion method, based on interest rates implicit in the transaction.

d) Fixed Assets

i) Fixed Assets are stated at cost of acquisition inclusive of duties (net of Cenvat), taxes, incidental expenses, erection/ commissioning expenses etc. upto the time asset is ready for its intended use.

ii) Capital Work in progress is stated at the expenditure incurred upto the date of the Balance Sheet including capital advances.

iii) The carrying amounts of assets are reviewed at each Balance Sheet date to determine if there is any indication of Impairment based on external/ internal factors. An impairment loss is recognized wherever the carrying amount of the asset exceeds its recoverable amount which represents the greater of the net selling price of assets and their ''value in use''. The estimated future cash flows are discounted to their present value of the weighted average cost of capital.

e) Depreciation

Depreciation on the Assets has been provided on straight-line methods at the rates and in the manner specified in schedule-XIV of the Companies Act, 1956. Depreciation on impaired assets is calculated on its residual value, if any, on a systematic basis over its remaining useful life. Planting material is written off over a period of 5 years equally.

f) Investments

Long term investments, if any, are stated and carried at cost. However, unutilized issue proceeds are invested in fixed deposits with the company''s bankers.

g) Non-current assets

Expenditure incurred for public issue, pre-operative expenses, market development expenditure and expenditure on research and development will be amortized in over a period of 5 years in equal installments from the year of start of commercial production.

h) Foreign Currency Transactions

Foreign Exchange Transactions are recorded at the exchange rates prevailing on the date of transaction and any exchange differences arising on foreign transactions are recognized as income or expense in the year in which they arise.

i) Borrowing costs:

Borrowing costs are charged to profit and loss account except in cases where the borrowings are directly attributable to the acquisition, construction or production of a qualifying asset.

j) Retirement Benefits:

As regards to provident fund benefits, the company makes the stipulated contribution in respect of certain class of employees to regional provident fund authority under which the company''s liability is limited to the extent of contribution. Gratuity and leave encashment has been provided based on the actuarial valuation.

k) Taxation:

Current Income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act 1961.

l) Earnings per share:

Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

m) Expenditure during construction period:

The expenditure incidental to the expansion/ new projects is allocated to Fixed Assets in the year of commencement of commercial production. Interest on Loans raised for the expansion/ diversification project is set off against interest earned on unutilized Public issue funds.

n) Raw materials, stores and spare parts, packing materials, finished goods and work in progress are valued at lower of cost and Net realizable value (as certified by the management).

o) Deferred Tax Liability:-

The income from Agro based operations of the company comprises Horticulture and Nursery operations, which is exempted from Income Tax. Hence, Accounting Standard on deferred Tax Liability is not applicable in so far as it relates to the income from its agro based operations. However, for its Bio tech and Pharmaceutical operations, differed liability/ asset can be recognized once the diversification projects are completed.


Mar 31, 2013

A) Basis of Accounting

The accounts are prepared under the Historical Cost Convention. The Company adopts the accrual basis in the preparation of accounts in accordance with the Accounting standards referred to in Section 211(3C) of the Companies Act 1956.

b) Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material aspects with the accounting standards notified under the Companies (Accounting Standard) Rules, 2006, (as amended) and the relevant provisions of the Companies act, 1956,. The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies adopted in preparation of financial statements are consistent with those of previous year.

c) Revenue recognition

Sale of goods is recognized on transfer of property to the buyers for consideration. Interest on deployment of surplus funds is recognized using the time proportion method, based on interest rates implicit in the transaction.

d) Fixed Assets

i) Fixed Assets are stated at cost of acquisition inclusive of duties (net of Cenvat), taxes, incidental expenses, erection/ commissioning expenses etc. upto the time asset is ready for its intended use.

ii) Capital Work in progress is stated at the expenditure incurred upto the date of the Balance Sheet including capital advances.

iii) The carrying amounts of assets are reviewed at each Balance Sheet date to determine if there is any indication of Impairment based on external/ internal factors. An impairment loss is recognized wherever the carrying amount of the asset exceeds its recoverable amount which represents the greater of the net selling price of assets and their '' value in use''. The estimated future cash flows are discounted to their present value of the weighted average cost of capital.

e) Depreciation

Depreciation on the Assets has been provided on straight-line methods at the rates and in the manner specified in schedule-XIV of the Companies Act, 1956. Depreciation on impaired assets is calculated on its residual value, if any, on a systematic basis over its remaining useful life. Planting material is written off over a period of 5 years equally.

f) Investments

Long term investments, if any, are stated and carried at cost. However, unutilized issue proceeds are invested in fixed deposits with the company''s bankers.

g) Non-current assets

Expenditure incurred for public issue, pre-operative expenses, market development expenditure and expenditure on research and development will be amortized in over a period of 5 years in equal installments from the year of start of commercial production.

h) Foreign Currency Transactions

Foreign Exchange Transactions are recorded at the exchange rates prevailing on the date of transaction and any exchange differences arising on foreign transactions are recognized as income or expense in the year in which they arise.

i) Borrowing costs:

Borrowing costs are charged to profit and loss account except in cases where the borrowings are directly attributable to the acquisition, construction or production of a qualifying asset.

j) Retirement Benefits:

As regards to provident fund benefits, the company makes the stipulated contribution in respect of certain class of employees to regional provident fund authority under which the company''s liability is limited to the extent of contribution. Gratuity and leave encashment has been provided based on the actuarial valuation.

k) Taxation:

Current Income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act 1961.

l) Earnings per share:

Earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

m) Expenditure during construction period:

The expenditure incidental to the expansion/ new projects is allocated to Fixed Assets in the year of commencement of commercial production. Interest on Loans raised for the expansion/ diversification project is set off against interest earned on unutilized Public issue funds. n) Raw materials, stores and spare parts, packing materials, finished goods and work in progress are valued at lower of cost and Net realizable value (as certified by the management).

o) Deferred Tax Liability:-

The income from Agro based operations of the company comprises Horticulture and Nursery operations, which is exempted from Income Tax. Hence, Accounting Standard on deferred Tax Liability is not applicable in so far as it relates to the income from its agro based operations. However, for its Bio tech and Pharmaceutical operations, differed liability/ asset can be recognized once the diversification projects are completed.


Mar 31, 2012

A) Basis of Accounting

The accounts are prepared under the Historical Cost Convention. The Company adopts the accrual basis in the preparation of accounts in accordance with the Accounting standards referred to in Section 211(3C) of the Companies Act 1956.

b) Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material aspects with the accounting standards notified under the Companies (Accounting Standard) Rules, 2006, (as amended) and the relevant provisions of the Companies act, 1956,. The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies adopted in preparation of financial statements are consistent with those of previous year.

c) Revenue recognition

Sale of goods is recognized on transfer of property to the buyers for consideration. Interest on deployment of surplus funds is recognized using the time proportion method, based on interest rates implicit in the transaction.

d) Fixed Assets

i) Fixed Assets are stated at cost of acquisition inclusive of duties (net of Cenvat), taxes, incidental expenses, erection/ commissioning expenses etc. upto the time asset is ready for its intended use.

ii) Capital Work in progress is stated at the expenditure incurred upto the date of the Balance Sheet including capital advances.

iii) The carrying amounts of assets are reviewed at each Balance Sheet date to determine if there is any indication of Impairment based on external/ internal factors. An impairment loss is recognized wherever the carrying amount of the asset exceeds its recoverable amount which represents the greater of the net selling price of assets and their ' value in use'. The estimated future cash flows are discounted to their present value of the weighted average cost of capital.

e) Depreciation

Depreciation on the Assets has been provided on straight-line methods at the rates and in the manner specified in schedule-XIV of the Companies Act, 1956. Depreciation on impaired assets is calculated on its residual value, if any, on a systematic basis over its remaining useful life. Planting material is written off over a period of 5 years equally.

f) Investments

Long term investments, if any, are stated and carried at cost. However, unutilized issue proceeds are invested in fixed deposits with the company's bankers.

g) Non-rurrent assets

Expenditure incurred for public issue, pre-operative expenses, market development expenditure and expenditure on research and development will be amortized in over a period of 5 years in equal installments from the year of start of commercial production.

h) Foreign Currency Transactions

Foreign Exchange Transactions are recorded at the exchange rates prevailing on the date of transaction and any exchange differences arising on foreign transactions are recognized as income or expense in the year in which they arise.

i) Borrowing costs:

Borrowing costs are charged to profit and loss account except in cases where the borrowings are directly attributable to the acquisition, construction or production of a qualifying asset.

j) Retirement Benefits:

As regards to provident fund benefits, the company makes the stipulated contribution in respect of certain class of employees to regional provident fund authority under which the company's liability is limited to the extent of contribution. Gratuity and leave encashment has been provided based on the actuarial valuation.

k) Taxation:

Current Income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act 1961.

l) Earnings per share:

Earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

m) Expenditure during construction period:

The expenditure incidental to the expansion/ new projects is allocated to Fixed Assets in the year of commencement of commercial production. Interest on Loans raised for the expansion/ diversification project is set off against interest earned on unutilized Public issue funds.

n) Raw materials, stores and spare parts, packing materials, finished goods and work in progress are valued at lower of cost and Net realizable value (as certified by the management).

o) Deferred Tax Liability:-

The income from Agro based operations of the company comprises Horticulture and Nursery operations, which is exempted from Income Tax. Hence, Accounting Standard on deferred Tax Liability is not applicable in so far as it relates to the income from its agro based operations. However, for its Bio tech and Pharmaceutical operations, differed liability/ asset can be recognized once the diversification projects are completed.


Mar 31, 2010

A) Basis of Accounting

The accounts are prepared under the Historical Cost Convention. The Company adopts the accrual basis in the preparation of accounts in accordance with the Accounting standards referred to in Section 211(3C) of the Companies Act 1956.

b) Revenue recognition

Sale of goods is recognised on transfer of property to the buyers for consideration. Interest on deployment of surplus funds is recognised using the time proportion method, based on interesst rates implicit in the transaction.

c) Fixed Assets

i) Fixed Assets are stated at cost of acquisition inclusive of duties (net of Cenvat), taxes, incidental expenses, erection/ commissioning expenses etc. upto the time asset is ready for its intended use.

ii) Capital Work in progress is stated at the expenditure incurred upto the date of the Balance Sheet including capital advances.

iii) The carrying amounts of assets are reviewed at each Balance Sheet date to determine if there is any indication of Impairment based on external/ internal factors. An impairment loss is recognized wherever the carrying amount of the asset exceeds its recoverable amount which represents the greater of the net selling price of assets and their value in use. The estimated future cash flows are discounted to their present value of the weighted average cost of capital.

d) Depreciation

Depreciation on the Assets has been provided on straight-line methods at the rates and in the manner specified in schedule-XIV of the Companies Act, 1956. Depreciation on impaired assets is calculated on its residual value, if any, on a systematic basis over its remaining useful life. Planting material is written off over a period of 5 years equally.

e) Investments

Long term investments, if any, are stated and carried at cost. However, unutilized issue proceeds are invested in fixed deposits with the companys bankers.

f) Miscellaneous Expenses

Miscellaneous Expenditure includes public issue expenses and pre-operative expenses of the expansion project under implementation and expenditure on Research and Development, Market Development.

g) Foreign Currency Transactions

Foreign Exchange Transactions are recorded at the exchange rates prevailing on the date of transaction and any exchange differences arising on foreign transactions are recognized as income or expense in the year in which they arise.

h) Borrowing costs:

Borrowing costs are charged to profit and loss account except in cases where the borrowings are directly attributable to the acquisition, construction or production of a qualifying asset.

i) Retirement Benefits:

As regards to provident fund benefits, the company makes the stipulated contribution in respect of certain class of employees to regional provident fund authority under which the companys liability is limited to the extent of contribution. Gratuity will be accounted for on payment basis.

j) Taxation:

Tax expense comprises of current and fringe benefit tax. Current Income tax and Fringe Benefit Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act 1961.

k) Earnings per share:

Earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

l) Expenditure during construction period:

The expenditure incidental to the expansion/ new projects is allocated to Fixed Assets in the year of commencement of commercial production. Interest on Loans raised for the expansion/ diversification project is set off against interest earned on unutilised Public issue funds. m) Raw materials, stores and spare parts, packing materials, finished goods and work in progress are valued at lower of cost and Net realisable value (as certified by the management). n) Deferred Tax Liability:- The income from Agro based operations of the company comprises Horticulture and Nursery operations, which is exempted from Income Tax. Hence, Accounting Standard on deferred Tax Liability is not applicable in so far as it relates to the income from its agro based operations. However, for its Bio tech and Pharmaceutical operations, differed liability/ asset can be recognised once the diversification projects are completed. o) Contingent Liabilities

All known liabilities, wherever material, are provided by way of Notes to accounts.

 
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