Mar 31, 2018
1 Significant accounting policies
As per the Micro, Small and Medium Enterprises Development Act, 2006, the Company is required to identify the Micro, Small and Medium Enterprises and pay them interest on amounts overdue beyond the specified period irrespective of the terms agreed with them.
1.1 Basis of accounting and preparation of financial statements
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 relevant provisions of the Companies Act, 2013. The Financial Statements have been prepared on an accrual basis and under the historical cost convention.The accounting policies adopted in the preparation of financial statements are consistent with those of previous year except for the change in accounting policy, if any.
1.2 Use of estimates
The preparation of the Financial Statements in conformity with Indian GAAP requires Management to make Judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosures relating to contingent assets and liabilities at the end of the reporting period. Although these estimates are based on the managementâs best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in material or immaterial adjustments to the carrying amounts of assets or liabilities in future periods.
1.3 Inventories
Inventories are valued at cost, computed on a First-in-First-out (FIFO) basis, and estimated net realizable value whichever is lower. In respect of finished goods and work in process, appropriate overheads are loaded.
1.4 Depreciation and amortisation
Depreciation has been charged over the estimated useful life of a fixed assets on written down value method as per the rates prescribed and in the manner specified in Part C of Schedule - II of the Comapnies Act, 2013.Depreciation on fixed assets added/disposed off during the year/period is provided on pro-rata basis with reference to the date of addition/disposal. The useful lives of the groups of fixed assets
1.5 Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Income is accounted for on accrual basis in accordance with the Accounting Standards (AS) 9- âRevenue Recognitionâ. Insurance and other claims are recognized in accounts on lodgment to the extent these are measurable with reasonable certainty of acceptance. Excess/ shortfall is adjusted in the year of receipt. Interest is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.
1.6 Intangible Assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets are not capitalized and expensed off in the Statement of Profit and Loss in the year in which the expenditure is incurred. Intangible assets are amortized on a straight line basis over the estimated useful economic life. The amortization period and the amortization method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly.
1.7 Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Any subsidy/ reimbursement/ contribution received for installation and acquisition of any fixed assets is shown as deduction in the year of receipt. Capital work- in- progress is stated at cost.The Companyâs livestock comprise of dairy cattle. Livestock are initially recognised at cost. The cost of newborn calf is assumed to be nil. At each reporting date fair value of livestock is compared with carrying value and any material variations are recognised through profit and loss statement.
1.8 Investment
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in values is made to recognize a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.
1.9 Borrowig Cost
Borrowing cost includes interest. Such costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.
Mar 31, 2015
Corporate Information
Raghuvansh Agro farms Limited is a Limited Company in India and
incorporated under the provisions of the Companies Act, 1956. It came
into existence on 19.1.1996. The company is primarily engaged in
manufacturing and trading of agro products.
1. axis 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 relevant provisions of the Companies Act, 013. The
Financial Statements have been prepared on an accrual basis and under
the historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year except for the
change in accounting policy, if any.
2. Uses of Estimates
The preparation of the Financial Statements in conformity with Indian
GAAP requires Management to make Judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosures relating to contingent assets and
liabilities at the end of the reporting period. Although these
estimates are based on the management's best knowledge of current
events and actions, uncertainty about these assumptions and estimates
could result in material or immaterial adjustments to the carrying
amounts of assets or liabilities in future periods.
3. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
Income is accounted for on accrual basis in accordance with the
Accounting Standards (AS) 9- "Revenue Recognition".
Insurance and other claims are recognized in accounts on lodgment to
the extent these are measurable with reasonable certainty of
acceptance. Excess/ shortfall is adjusted in the year of receipt.
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the applicable interest rate.
4. Inventories
Inventories are valued at cost, computed on a First-in-First-out (FIFO)
basis, and estimated net realizable value whichever is lower. In
respect of finished goods and work in process, appropriate overheads
are loaded.
5. Tangible Fixed Assets
Fixed Assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price, borrowing costs, if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for
the intended use. Any subsidy/ reimbursement/ contribution received for
installation and acquisition of any fixed assets is shown as deduction
in the year of receipt. Capital work- in- progress is stated at cost.
6. Depreciation
Depreciation on assets is provided on the rates arrived at, based on
the useful life estimated by the management/prescribed under the
Schedule II of the Companies Act, 013.
Depreciation on fixed assets added/disposed off during the year/period
is provided on pro-rata basis with reference to the date of
addition/disposal.
7. Intangible Assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment losses, if any. Internally generated intangible assets are
not capitalized and expensed off in the Statement of Profit and Loss in
the year in which the expenditure is incurred.
Intangible assets are amortized on a straight line basis over the
estimated useful economic life.
The amortization period and the amortization method are reviewed at
least at each financial year end. If the expected useful life of the
asset is significantly different from previous estimates, the
amortization period is changed accordingly.
8. borrowing Cost
Borrowing cost includes interest. Such costs directly attributable to
the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its
intended use or sale are capitalized as part of the cost of the
respective asset. All other borrowing costs are expensed in the period
they occur.
9. Taxes on Income
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961 enacted in India. The tax
rates and tax Laws used to compute the amounts are those that are
enacted, at the reporting date.
Deferred Taxes reflect the impact of timing differences between taxable
income and accounting income originating during the current year and
reversal of timing differences for the earlier years. Deferred tax is
measured using the tax rates and the tax laws enacted at the reporting
date.
Deferred tax liabilities are recognized for all taxable timing
differences. Deferred tax assets including the unrecognized deferred
tax assets, if any, at each reporting date, are recognized for
deductible timing differences only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against which deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each
reporting date and are adjusted for its appropriateness.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set off current tax assets against
current tax liabilities and deferred tax assets and deferred taxes
relate to the same taxable entity and the same taxation authority.
Minimum Alternate Tax (MAT) paid in a year is charged to the Statement
of Profit and Loss as current tax. The company recognizes MAT credit
available as an asset only to the extent there is convincing evidence
that the company will pay normal income tax during the specified
period, i.e., the period for which MAT Credit is allowed to be carried
forward. In the year in which the Company recognizes MAT Credit as an
asset in accordance with the Guidance Note on Accounting for Credit
Available in respect of Minimum Alternate Tax under the Income Tax Act,
1961, the said asset is created by way of credit to the statement of
Profit and Loss and shown as "MAT Credit Entitlement." The Company
reviews the "MAT Credit Entitlement" asset at each reporting date and
writes down the asset to the extent the company does not have
convincing evidence that it will pay normal tax during the sufficient
period.
10. Employee benefits
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
Defined contribution plan: Company's contribution towards provident
fund is recognized in the profit and loss account.
11. Investment
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments.
On initial recognition, all investments are measured at cost. The cost
comprises purchase price and directly attributable acquisition charges
such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of
cost and fair value determined on an individual investment basis. Long
term investments are carried at cost. However, provision for diminution
in values is made to recognize a decline other than temporary in the
value of the investments.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
12. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all diluting potential equity shares.
13. Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date.
If there is any indication of impairment based on internal/external
factors, an impairment loss is recognized wherever the carrying amount
of an asset exceed its recoverable amount. The recoverable amount is
the greater of the assets net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying
amount of the assets over its remaining useful life.
A previously recognized impairment loss is increased or reversed
depending on changes in circumstances. However, the carrying value
after reversal is not increased beyond the carrying value that would
have prevailed by charging usual depreciation if there was no
impairment.
14. Provisions, Liabilities & Contingent Assets
a. Provisions
A provision is recognized when the company has present obligations as a
result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligations
and reliable estimate can be made of amount of the obligation.
Provisions are not discounted at their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
b.Contingent Liabilities
A Contingent liability is a possible obligation that arises from the
past events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is liability that cannot be
recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the
financial statements.
15. Leases
Where the company is Lessee
Assets taken on lease, under which the lesser effectively retains all
the risks and rewards of ownership, are classified as operating lease.
Operating lease payments are recognized as expense in the statement of
profit and loss account.
Assets acquired under leases where all the risks and rewards of
ownership are substantially transferred to company are classified as
finance leases. Such leases are capitalized at the inception of the
lease at the lower of fair value or the present value of minimum lease
payments and liability is created for an equivalent amount. Each lease
rental paid is allocated between the liability and interest cost so as
to obtain a constant periodic rate of interest on the outstanding
liability for each period.
Where the company is Lesser
Leases in which the company transfers substantially all the risks and
benefits of ownership of the asset are classified as finance leases.
Assets given under finance lease are recognized as a receivable at an
amount equal to the net investment in the lease. After initial
recognition, the company apportions lease rentals between the principal
repayment and interest income so as to achieve a constant periodic rate
of return on the net investment outstanding in respect of the finance
lease. The interest income is recognized in the statement of profit and
loss. Initial direct costs such as legal costs, brokerage costs, etc.
are recognized immediately in the statement of profit and loss.
Leases in which the company does not transfer substantially all the
risks and benefits of ownership of the asset are classified as
operating leases. Assets subject to operating leases are included in
fixed assets. Lease income on an operating lease is recognized in the
statement of profit and Loss as revenue from operation. Costs,
including depreciation, are recognized as an expense in the statement
of profit and loss. Initial direct costs such as legal costs, brokerage
costs, etc. are recognized immediately in the statement of profit and
loss.