Enter the first few characters of Company and click 'Go'

Accounting Policies of Karuturi Global Ltd. Company

Mar 31, 2018

1. SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of Presentation

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act , 2013 (âActâ) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The Company has adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards . The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP.

Accounting policies have been consistently applied except where a new accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and 12 months or other criteria as set out in the Schedule VI to the Companies Act, 2013. The operating cycle is a period of production and their realization in cash and cash equivalents.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

1.3 Revenue Recognition

Revenue from the sale of grown/traded items is recognized upon passage of the title to the customers which generally coincides with the delivery and acceptance thereof. Income by way of âinterestâ is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Income by way of âdividendâ is recognized when the Companyâs right to receive dividend is established.

Operating Lease rentals are accounted on the basis of period of lease.

Other income from the sale of duty credit script under Vishesh Krishi and Gram Udyog Yojana has been accounted on the basis of estimated realization of scrips.

1.4 Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an assetâs expected useful life and the expected residual value at the end of its life. The useful lives and residual values of companyâs assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by management. The company depreciates property, plant and equipment over their estimated useful lives using the straight-line method.

1.5 Intangible Assets

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end.

Research costs are expensed as incurred. Software product development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the company has an intention and ability to complete and use or sell the software and the costs can be measured reliably. The costs which can be capitalized include the cost of material, direct labour, overhead costs that are directly attributable to preparing the asset for its intended use. Research and development costs and software development costs incurred under contractual arrangements with customers are accounted as expenses in the Statement of Profit and Loss.

Depreciation

Depreciation on fixed assets has been provided on âStraight line method based on the remaining useful life of the asset as prescribed under the Companies Act 2013. Depreciation on additions/disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use / sold...

Biological assets are not depreciated as the same is not covered in IndAS 16 Property, Plant & Equipments.

1.6 Investments

Investments, which are readily realizable and intended to be held for not more than 1 year from the date on which such investments are made, are classified as a Current Investments. All other investments are classified as non-current investments.

Current investments are carried at the lower of cost and quoted/fair value computed category wise. Long term and strategic investments are stated at cost, less any diminution in the value other than temporary.

1.7 Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction.

Monetary current assets and liabilities, denominated in foreign currency are translated at the rates of exchange at the balance sheet date and the resultant gain or loss is recognized in the Statement of profit and loss.

In accordance with the option given in the Ministry of Corporate Affairs Notification No. GSR 225(E) dated 31st March 2009 and amended from time to time the Exchange fluctuations arising on reporting of long term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, insofar as they relate to acquisition of a depreciable capital assets, is added to or deducted from the cost of the assets and will be depreciated over the balance life of the asset, and in other cases is accumulated in âForeign Currency Monetary Item Translation Difference Accountsâ in the Companyâs financial statements and amortized over the balance period of such long term asset/liability but not beyond 31st march 2020, by recognition as income or expenses in each such of the period.

1.8 Inventory

Cost of Inventories comprises of all cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.

Inventory as physically verified and certified by the management are valued at cost or market rate whichever is lower using the FIFO method. Raw materials are valued at cost. Stock in trade is valued at the lower of cost or net realizable value. Agricultural produce are valued at net realizable value basis.

1.9 Employee Benefits

Short Term Employee Benefits: The company accounts for short term employee benefits viz., salary, bonus and other allowances as and when the services are rendered by employees i.e., on accrual basis of accounting and dues within 12 months.

Defined Contribution Plan:

Provident Fund: Contribution towards provident fund for certain employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.

Defined Benefit Plan:

Gratuity: The Company provides for Gratuity, a defined benefit retirement plan (Gratuity Plan) covering eligible employees. In accordance with the Payment of Gratuity Act, 1972, the Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employeeâs salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation using project unit credit method as at balance sheet date, based upon which, the Company makes necessary and adequate provisions in the books of accounts. The consequent actuarial gain or loss is expensed in the period of accrual of gain or loss.

Other Long term Benefits:

Compensated Absence: Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year end are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.

Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year are treated as other long term employee benefits. The Companyâs liability is actuarially determined using the Projected Unit Credit methods at balance sheet date. Actuarial losses/ gains are recognised in the Statement of Profit and Loss in the year in which they arise.

1.10 Employee Stock Options:

The options are valued, as per SEBI Guidelines âEmployee Stock Option Plans/Employee Stock Purchase Plansâ, based on the fair market value of the shares on the date of grant. The difference between the fair market value of shares and the exercise price would be expensed off in the year of exercise of the options, net off any receipt of amount from the employee towards exercise of the options.

1.11 Borrowing Cost:

Borrowing costs including exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest cost, that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred

1.12 Earnings per Share:

Basic earnings per equity share are computed by dividing net profit after tax by weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing adjusted net profit after tax by the aggregate of weighted average number of equity shares and all dilutive potential equity shares.

1.13 Provision for Current Tax and Deferred Income Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

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 substantially enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent there is a reasonable certainty that the asset will be realized in future. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses. Deferred tax assets and deferred tax liabilities have been offset wherever the company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

Minimum Alternative Tax credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

1.14 Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.15 Cash and Cash Equivalents.

In the cash flow statement, cash and cash equivalents include cash in hand, demand deposits with banks, other shortterm highly liquid investments with original maturities of three months or less.

1.16 Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized in terms of Indian Accounting Standard - 37: âProvisions, Contingent Liabilities and Contingent Assetsâ, issued by the Institute of Chartered Accountants of India, where there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are recognized only when there is a possible obligation from past events due to occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets are not recognized in the Financial Statements

1.17 Leases

As a lessee:

The Company leases certain tangible assets were risks and rewards of ownership are retained by the lesser are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease.

As a lessor:

The Company has leased certain tangible assets and such leases where the Company has Substantially retained all the risks and rewards of ownership are classified as operating leases. Lease income on such operating leases are recognised in the Statement of Profit and Loss on a straight line basis over the lease term which is representative of the time pattern in which benefit derived from the use of the leased asset is diminished. Initial direct costs are recognised as an expense in the Statement of Profit and Loss in the period in which they are incurred.

Finance lease:

Assets held under finance lease are included in the Balance Sheet at cost less depreciation in accordance with the Companyâs normal accounting policies. Interest is charged to the profit and loss account over the period of the lease in proportion to the principal sum outstanding.

1.18 Operating Segment

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for preparing and presenting the financial statement of the Company as a whole.

Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the Company as a whole and are not allocable to segments on a reasonable basis, have been included under âUnallocated corporate revenue/ expensesâ.

Mar 31, 2016

GENERAL INFORMATION OF THE COMPANY

Incorporated in 1994, Karuturi Global is today the largest producer of cut roses in the world, with are area of over 292 hectares under Greenhouse cultivation and an annual production capacity of around 555 million stems.

From a modest beginning in 1994, as an export-oriented unit for floriculture, we have expanded our presence into agriculture and food processing verticals with operations spread across Ethiopia, Kenya and India.

The Mission of the company is âTo emerge as an integrated agri-products company servicing the world market through unmatched product, cost and quality advantages.â

NOTES TO ACCOUNTS:

1. SIGNIFICANTACCOUNTING POLICIES

1.1 Basis of Presentation

The Financial Statements of the Company are prepared under historical cost convention, on accrual basis of accounting to comply in all material respects, with the mandatory Accounting standards as notified by the Companies (Accounting Standards) Rules, 2006 as amended (''the Rules'') and the relevant provisions of the Companies Act, 2013 (''the Act''). Accounting policies have been consistently applied except where a new accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and 12 months or other criteria as set out in the Schedule VI to the Companies Act, 2013. The operating cycle is a period of production and their realization in cash and cash equivalents.

1.2 Use of Estimates

The preparation of the financial statements are in conformity with the Indian GAAP which requires the management make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

1.3 Revenue Recognition

Revenue from the sale of grown/traded items is recognized upon passage of the title to the customers which generally coincides with the delivery and acceptance thereof. Income by way of ''interest'' is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Income by way of ''dividend'' is recognized when the Company''s right to receive dividend is established.

Operating Lease rentals are accounted on the basis of period of lease.

Other income from the sale of duty credit script under Vishesh Krishi and Gram Udyog Yojana has been accounted on the basis of estimated realization of scrips.

1.4 Tangible and Intangible Assets

Tangible Assets are stated at actual cost less accumulated depreciation and impairment if any. The actual cost includes acquisition cost, taxes, duties, wherever applicable, and all other expenses directly attributable for putting the asset into its intended use.

The cost and accumulated depreciation of tangible assets sold are removed from the stated values and the resultant Profit/Loss has been included in Statement of Profit & Loss.

Biological assets are stated at revalued amount, which is the fair value at the date of revaluation less any accumulated impairment losses. Fair value is determined by market based evidence by appraisal that is carried out by professionally qualified valuer. Revaluation of biological assets are carried out at sufficient regularity and any material differences are adjusted accordingly to ensure that the carrying value of the asset does not differ materially from the fair values determined as at balance sheet date.

Intangible Assets are stated at actual cost less accumulated depreciation. The actual cost includes acquisition cost, taxes, duties, wherever applicable, and all other expenses directly attributable for putting the asset into its intended use.

1.5 Depreciation

Depreciation on fixed assets has been provided on âStraight line method at the rates prescribed under the Companies Act 2013. Depreciation on additions/disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use / sold.

Biological assets are not depreciated as the same is not covered in Accounting Standard - 6 "Depreciation Accounting".

1.6 Investments

1.7 Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction.

In accordance with the option given in the Ministry of Corporate Affairs Notification No. GSR 225(E) dated 31st March 2009 and amended from time to time the Exchange fluctuations arising on reporting of long term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, insofar as they relate to acquisition of a depreciable capital assets, is added to or deducted from the cost of the assets and will be depreciated over the balance life of the asset, and in other cases is accumulated in ''Foreign Currency Monetary Item Translation Difference Accounts'' in the Company''s financial statements and amortized over the balance period of such long term asset/liability but not beyond 31st march 2020, by recognition as income or expenses in each such of the period.

1.8 Inventory

Cost of Inventories comprises of all cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.

1.9 Employee Benefits

Short Term Employee Benefits: The company accounts for short term employee benefits viz., salary, bonus and other allowances as and when the services are rendered by employees i.e., on accrual basis of accounting and dues within 12 months.

Defined Contribution Plan:

Provident Fund: Contribution towards provident fund for certain employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.

Defined Benefit Plan:

Gratuity: The Company provides for Gratuity, a defined benefit retirement plan (Gratuity Plan) covering eligible employees. In accordance with the Payment of Gratuity Act, 1972, the Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation using project unit credit method as at balance sheet date, based upon which, the Company makes necessary and adequate provisions in the books of accounts. The consequent actuarial gain or loss is expensed in the period of accrual of gain or loss.

Other Long term Benefits:

Compensated Absence: Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year end are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.

Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year are treated as other long term employee benefits. The Company''s liability is actuarially determined using the Projected Unit Credit methods at balance sheet date. Actuarial losses/ gains are recognized in the Statement of Profit and Loss in the year in which they arise.

1.10 Employee Stock Options:

1.11Borrowing Cost:

1.12 Earnings per Share:

1.13 Provision for Current Tax and Deferred Income Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

1.14 Impairment of Assets:

1.15 Cash and Cash Equivalents.

In the cash flow statement, cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

1.16 Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized in terms of Accounting Standard - 29: âProvisions, Contingent Liabilities and Contingent Assetsâ, issued by the Institute of Chartered Accountants of India, where there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Assets are not recognized in the Financial Statements

1.17 Leases As a lessee:

As a lessor:

The Company has leased certain tangible assets and such leases where the Company has Substantially retained all the risks and rewards of ownership are classified as operating leases. Lease income on such operating leases are recognized in the Statement of Profit and Loss on a straight line basis over the lease term which is representative of the time pattern in which benefit derived from the use of the leased asset is diminished. Initial direct costs are recognized as an expense in the Statement of Profit and Loss in the period in which they are incurred.

Finance lease:

Assets held under finance lease are included in the Balance Sheet at cost less depreciation in accordance with the Company''s normal accounting policies. Interest is charged to the profit and loss account over the period of the lease in proportion to the principal sum outstanding.

1.18 Segment Reporting

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for preparing and presenting the financial statement of the Company as a whole.

Mar 31, 2014

1.1 Basis of Presentation

The Financial Statements of the Company are prepared under historical cost convention, on accrual basis of accounting to comply in all material respects, with the mandatory Accounting standards as notified by the Companies (Accounting Standards) Rules, 2006 as amended (''the Rules'') and the relevant provisions of the Companies Act, 1956 (''the Act'').

Accounting policies have been consistently applied except where a new accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and 12 months or other criteria as set out in the Schedule VI to the Companies Act, 1956. The operating cycle is a period of production and their realization in cash and cash equivalents.

1.2 Use of Estimates

The preparation of the financial statements are in conformity with the Indian GAAP which requires the management make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

1.3 Revenue Recognition

Revenue from the sale of grown/traded items is recognized upon passage of the title to the customers which generally coincides with the delivery and acceptance thereof. Income by way of ''interest'' is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Income by way of ''dividend'' is recognized when the Company''s right to receive dividend is established.

Operating Lease rentals are accounted on the basis of period of lease.

Other income from the sale of duty credit script under Vishesh Krishi and Gram Udyog Yojana has been accounted on the basis of estimated realization of scrips.

1.4 Tangible and Intangible Assets

Tangible Assets are stated at actual cost less accumulated depreciation and impairment if any. The actual cost includes acquisition cost, taxes, duties, wherever apphcable, and all other expenses directly attributable for putting the asset into its intended use.

The cost and accumulated depreciation of tangible assets sold are removed from the stated values and the resultant Profit/Loss has been included in Statement of Profit & Loss.

Biological assets are stated at revalued amount, which is the fair value at the date of revaluation less any accumulated impairment losses. Fair value is determined by market based evidence by appraisal that is carried out by professionally qualified valuer. Revaluation of biological assets are carried out at sufficient regularity and any material differences are adjusted accordingly to ensure that the carrying value of the asset does not differ materially from the fair values determined as at balance sheet date.

Intangible Assets are stated at actual cost less accumulated depreciation. The actual cost includes acquisition cost, taxes, duties, wherever applicable, and all other expenses directly attributable for putting the asset into its intended use.

1.5 Depreciation

Depreciation on fixed assets has been provided on "Straight line method at the rates prescribed in Schedule XIV to the Companies Act 1956. Depreciation on additions/disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use / sold. Assets purchased/Installed during the year costing less than Rs. 5,000/- each are fully depreciated.

Biological assets are not depreciated as the same is not covered in Accounting Standard - 6 "Depreciation Accounting".

1.6 Investments

Investments, which are readily realizable and intended to be held for not more than 1 year from the date on which such investments are made, are classified as a Current Investments. All other investments are classified as non-current investments.

Current inv''estments are carried at the lower of cost and quoted/fair value computed category wise. Long term and strategic investments are stated at cost, less any " diminution in the value other than temporary.

1.7 Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevaihng on the date of transaction.

Monetary current assets and liabilities, denominated in foreign currency are translated at the rates of exchange at the balance sheet date and the resultant gain or loss is recognized in tlie Statement of profit and loss.

In accordance with die option given in the Ministry of Corporate Affairs Notification No. GSR 225(E) dated 31 March 2009 and amended from time to time the Exchange fluctuations arising on reporting of long term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, insofar as they relate to acquisition of a depreciable capital assets, is added to or deducted from the cost of the assets and will be depreciated over the balance life of the asset, and in otlier cases is accumulated in ''Foreign Currency Monetary Item Translation Difference Accounts'' in the Company''s financial statements and amortized over the balance period of such long term asset/liability but not beyond 31 march 2020, by recognition as income or expenses in each such of the period.

1.8 Inventory

Cost of Inventories comprises of all cost of purchase, cost of conversion and other cost incurred m bringing them to their respective present location and condition.

Inventory as physically verified and certified by the management arc valued at cost or market rate whichever is lower using the FIFO method. Raw materials are valued at cost. Stock in trade is valued at the lower of cost or net realizable value. Agricultural produce are valued at net realizable value basis.

1.9 Employee Benefits

Short Term Employee Benefits: The company accounts for short term employee benefits viz., salary, bonus and other allowances as and when the services are rendered by employees i.c., on accrual basis of accounting and dues within 12 months.

'' Defined Contribution Plan:

Provident Fund: Contribution towards provident fund for certain employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a , monthly basis.

Defined Benefit Plan;

Gratuity: The Company provides for Gratuity, a defined benefit retirement plan (Gratuity Plan) covering eligible employees. In accordance with the Payment of Gratuity Act, 1972, the Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation using project unit credit method as at balance sheet date, based upon which, the Company makes necessary and adequate provisions in the books of accounts. The consequent actuarial gain or loss is expensed in the period of accrual of gain or loss.

Other Long term Benefits:

Compensated Absence: Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year end are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.

Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year are treated as other long term employee benefits. The Company''s liability is actuarially determined using the Projected Unit Credit methods at balance sheet date. Actuarial losses/ gains are recognised in the Statement of Profit and Loss in the year in which they arise.

1.10 Employee Stock Options:

The options are valued, as per SEBI Guidelines "Employee Stock Option Plans/Employee Stock Purchase Plans", based on the fair market value of the shares on the date of grant. The difference between the fair market value of shares and the exercise price would be expensed off in the year of exercise of the options, net off any receipt of amount from the employee towards exercise of the options.

l.llBorrowing Cost:

Borrowing costs including exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest cost, that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred

1.12 Earnings per Share:

Basic earnings per equity share arc computed by dividing net profit after lax by weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing adjusted net profit after tax by the aggregate of weighted average number of equity shares and all dilutive potential equity shares.

1.13 Provision for Current Tax and Deferred Income Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax resultiiig from timing difference between book profit and taxable profit is accounted for using the tax rates and laws that are enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent there is a reasonable certainty that the asset wiU be realized in future. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses. Deferred tax assets and deferred tax liabilities have been offset wherever the company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation aulliorily.

Minimum Alternative Tax credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

1.14 Impairment of Assets;

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of Profit and Loss '' Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.15 Cash and Cash Equivalents.

In the cash flow statement, cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

1.16 Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized in terms of Accounting Standard - 29: "Provisions, Contingent Liabilities and Contingent Assets", issued by the Institute of Chartered Accountants of India, where there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are recognized only when there is a possible obligation from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets are not recognized in the Financial Statements

1.17 Leases As a lessee:

The Company leases certain tangible assets were risks and rewards of ownership are retained by the lesser are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease.

As a lessor:

The Company has leased certain tangible assets and such leases where the Company has Substantially retained all the risks and rewards of ownership are classified as operating leases. Lease income on such operating leases are recognised in the Statement of Profit and Loss on a straight line basis over the lease term which is representative of the time pattern in which benefit derived from the use of the leased asset is diminished. Initial direct costs are recognised as an expense in the Statement of Profit and Loss in the period in which they are incurred.

Finance lease:

Assets held under finance lease are included in the Balance Sheet at cost less depreciation in accordance with the Company''s normal accounting policies. Interest is charged to the profit and loss account over the period of the lease in proportion to the principal sum outstanding.

1.18 Segment Reporting

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for preparing and presenting the financial statement of the Company as a whole.

Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the Company as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocated corporate revenue/ expenses".

Mar 31, 2012

1.1 Basis of Presentation

The Financial Statements of the Company are prepared under historical cost convention, on accrual basis of accounting to comply in all material respects, with the mandatory Accounting standards as notified by the Companies (Accounting Standards) Rules, 2006 as amended ('the Rules,') and the relevant provisions of the Companies Act, 1956 ('the Act'). Accounting policies have been consistently applied except where a new accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2 Use of Estimates

The preparation of the financial statements are in conformity with the Indian GAAP which requires the management make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

1.3 Revenue Recognition

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

Income by way of 'interest' is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Income by way of 'dividend' is recognized when the Company's right to receive dividend is established.

Operating Lease rentals are accounted on the basis of period of lease.

1.4 Fixed Assets

Fixed Assets are stated at actual cost less accumulated depreciation and impairment if any. The actual cost includes acquisition cost, taxes, duties, wherever applicable, and all other expenses directly attributable for putting the asset into its intended use.

The cost and accumulated depreciation of fixed assets sold are removed from the stated values and the resultant Profit/Loss has been included in Profit & Loss Account.

1.5 Depreciation

i) Depreciation on fixed assets has been provided on "Straight line method" at the rates prescribed in Schedule XIV to the Companies Act 1956. Depreciation on additions/disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use/sold. Assets purchased/Installed during the year costing less than Rs.5000/- each are fully depreciated.

ii) Depreciation on biological assets is made to the extent the carrying cost exceeds the realizable/fair value of such assets.

1.6 Investments

Current Investments are carried at the lower of cost and quoted/fair value computed category wise.

Long term and strategic investments are stated at cost, less any diminution in the value other than temporary.

1.7 Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction.

Monetary current assets and liabilities, denominated in foreign currency are translated at the rates of exchange at the balance sheet date and the resultant gain or loss is recognized in the Profit and Loss Account.

In accordance with the option given in the Ministry of Corporate Affairs Notification No. GSR 225(E) dated 31st March 2009 and amended from time to time the Exchange fluctuations arising on reporting of long term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, insofar as they relate to acquisition of a depreciable capital assets, is added to or deducted from the cost of the assets and will be depreciated over the balance life of the asset, and in other cases is accumulated in Foreign Currency Monetary Item Translation Difference Accounts in the Company's financial statements and amortized over the balance period of such long term asset/liability but not beyond 31st march 2020, by recognition as income or expenses in each such of the period.

1.8 Inventory

Cost of Inventories comprises of all cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.

Inventory as physically verified and certified by the management are valued at cost or market rate whichever is lower using the FIFO method. However agricultural pruduces are valued at net realisable value basis.

1.9 Employee Benefits

Short Term Employee Benefits: The company accounts for short term employee benefits viz., salary, bonus and other allowances as and when the services are rendered by employees i.e., on accrual basis of accounting.

Gratuity: The Company provides for Gratuity, a defined benefit retirement plan (Gratuity Plan) covering eligible employees. In accordance with the Payment of Gratuity Act, 1972, the Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date, based upon which, the Company makes necessary and adequate provisions in the books of accounts. The consequent actuarial gain or loss is expensed in the period of accrual of gain or loss.

1.10 Employee Stock Options:

The options are valued, as per SEBI Guidelines "Employee Stock Option Plans/Employee Stock Purchase Plans", based on the fair market value of the shares on the date of grant. The difference between the fair market value of shares and the exercise price would be expensed off in the year of exercise of the options, net off any receipt of amount from the employee towards exercise of the options.

1.11 Borrowing Cost:

Borrowing costs including exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest cost, that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.

1.12 Earnings per Share:

Basic earnings per Equity Share are computed by dividing net profit after tax by weighted average number of Equity Shares outstanding during the year. Diluted earnings per Equity Share is computed by dividing adjusted net profit after tax by the aggregate of weighted average number of Equity Shares and dilutive potential Equity Shares and also includes that of potential conversions from FCCB to equity and vested Employee Stock Option Plan outstanding during the year.

1.13 Provision for Current Tax and Deferred Income Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

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 substantially enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent there is a reasonable certainty that the asset will be realized in future.

1.14 Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.15 Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized in terms of Accounting Standard Ã 29: "Provisions, Contingent Liabilities and Contingent Assets", issued by the Institute of Chartered Accountants of India, where there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are recognized only when there is a possible obligation from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Mar 31, 2011

1. Basis of Presentation

The Financial Statements of the Company are prepared under historical cost convention,on accrual basis of accounting to comply in all material respects, with the mandatory Accounting standards as notified by the Companies (Accounting Standards) Rules, 2006 as amended ('the Rules') and the relevant provisions of the Companies Act, 1956 ('the Act'). Accounting policies have been consistently applied except where a new accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2. Use of Estimates

The preparation of the financial statements are in conformity with the Indian GAAP which requires the management make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

3. Revenue Recognition

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

Revenue from Services consist primarily of revenue earned from services performed on a 'time and material' basis. The related revenue is recognized as and when the services are performed.

Revenue from Internet Service Provision (ISP) is recognized in the year on time proportionate basis.

Export sales are accounted at the exchange rate prevailing on the date of sale.

Income by way of 'interest' is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Income by way of 'dividend' is recognized when the Company's right to receive dividend is established.

Operating Leases: Rentals are accounted on the basis of period of lease.

4. Fixed Assets

Fixed Assets are stated at actual cost less accumulated depreciation and impairment if any . The actual cost includes acquisition cost, taxes, duties, wherever applicable, and all other expenses directly attributable for putting the asset into its intended use.

The cost and accumulated depreciation of fixed assets sold are removed from the stated values and the resultant Profit/Loss has been included in Profit & Loss Account.

5. Depreciation

A) Depreciation on fixed assets has been provided on "Straight line method at the rates prescribed in Schedule XIV to the Companies Act 1956. Depreciation on additions/disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use / sold. Assets purchased/Installed during the year costing less than Rs.5000/- each are fully depreciated.

B) Depreciation on biological assets is made to the extent the carrying cost exceeds the realizable/fair value of such assets.

6. Investments

Current Investments are carried at the lower of cost and quoted/fair value computed category wise.

Long term and strategic investments are stated at cost, less any diminution in the value other than temporary.

7. Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction.

Monetary current assets and liabilities, denominated in foreign currency are translated at the rates of exchange at the balance sheet date and the resultant gain or loss is recognized in the Profit and Loss Account.

In accordance with the option given in the Ministry of Corporate Affairs Notification No. GSR 225(E) dated 31st March 2009 and amended on 11th May 2011 the Exchange fluctuations arising on reporting of long term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, insofar as they relate to acquisition of a depreciable capital assets, is added to or deducted from the cost of the assets and will be depreciated over the balance life of the asset, and in other cases is accumulated in 'Foreign Currency Monetary Item Translation Difference Accounts' in the Company's financial statements and amortized over the balance period of such long term asset/liability but not beyond 31st march 2012, by recognition as income or expenses in each such of the period.

8. Inventory

Cost of Inventories comprises of all cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.

Inventory as physically verified and certified by the management are valued at cost or market rate whichever is lower using the FIFO method. However agricultural outputs are valued at net releasable value basis.

9. Employee Benefits

Short Term Employee Benefits: The company accounts for short term employee benefits viz., salary, bonus and other allowances as and when the services are rendered by employees i.e., on accrual basis of accounting.

Gratuity: The Company provides for Gratuity, a defined benefit retirement plan (Gratuity Plan) covering eligible employees. In accordance with the Payment of Gratuity Act, 1972, the Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date, based upon which, the Company makes necessary and adequate provisions in the books of accounts. The consequent actuarial gain or loss is expensed in the period of accrual of gain or loss.

Employee Stock Options:

The options are valued, as per SEBI Guidelines "Employee Stock Option Plans/Employee Stock Purchase Plans", based on the fair market value of the shares on the date of grant. The difference between the fair market value of shares and the exercise price would be expensed off in the year of exercise of the options, net off any receipt of amount from the employee towards exercise of the options.

10. Borrowing Cost :

Borrowing costs including exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest cost, that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.

11. Earnings Per Share:

Basic earnings per equity share are computed by dividing net profit after tax by weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing adjusted net profit after tax by the aggregate of weighted average number of equity shares and dilutive potential equity shares and also includes that of potential conversions from FCCB to equity and vested Employee Stock Option Plan outstanding during the year.

12. Provision for Current Tax and Deferred Income Tax Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

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 substantially enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent there is a reasonable certainty that the asset will be realized in future.

13. Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

14. Accounting of Financial Instruments:

The contractual gains/losses arising out of derivative transactions(Options), are accumulated in Hedging Reserve Account and will be charged off /charged back to Profit and Loss Account at the time of derecognizing of underlying financial liability (FCCB) in accordance with Accounting Standard Ã 30 "Financial Instruments: Recognition and Measurement" issued by Institute of Chartered Accountants of India.

Premium on Redemption of Foreign Currency Convertible Bonds is recognized only in the event of non- conversion of bonds to shares, at the end of maturity period.

15. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized in terms of Accounting Standard Ã 29: "Provisions, Contingent Liabilities and Contingent Assets", issued by the Institute of Chartered Accountants of India, where there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are recognized only when there is a possible obligation from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets are not recognized in the Financial Statements.

Mar 31, 2010

1. Basis of Presentation

The Financial Statements of the Company are prepared under historical cost convention, on accrual basis of accounting to comply in all material respects, with the mandatory Accounting standards as notified by the Companies (Accounting Standards) Rules, 2006 as amended ("the Rules") and the relevant provisions of the Companies Act, 1956 ("the Act"). Accounting policies have been consistently applied except where a new accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2. Use of Estimates

The preparation of the financial statements are in conformity with the Indian GAAP which requires the management make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized.

3. Revenue Recognition

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

Revenue from Services consist primarily of revenue earned from services performed on a Ãtime and materialÃ basis. The related revenue is recognized as and when the services are performed.

Revenue from Internet Service Provision (ISP) is recognized in the year on time proportionate basis .

Export sales are accounted at the exchange rate prevailing on the date of sale. The payment received in foreign exchange against these bills is credited at the exchange rates prevailing on the date of receipt of payment.

Income by way of "interest" is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Income by way of "dividend" is recognized when the Companys right to receive dividend is established.

Operating Leases: Rentals are accounted on the basis of period of lease.

4. Fixed Assets

Fixed Assets are stated at actual cost less accumulated depreciation and impairment if any . The actual cost includes acquisition cost, taxes, duties, wherever applicable, and all other expenses directly attributable for putting the asset into its intended use.

The cost and accumulated depreciation of fixed assets sold are removed from the stated values and the resultant Profit/Loss has been included in Profit & Loss Account.

5. Depreciation

A) Depreciation on fixed assets has been provided on Straight line method at the rates prescribed in Schedule XIV to the Companies Act 1956. Depreciation on additions/disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use / sold. Assets purchased/Installed during the year costing less than Rs.5000/- each are fully depreciated.

B) Depreciation on biological assets is made to the extent the carrying cost exceeds the realizable/fair value of such assets.

6. Investments

Current Investments are carried at the lower of cost and quoted/fair value computed category wise.

Long term and strategic investments are stated at cost, less any diminution in the value other than temporary.

7. Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction.

Monetary current assets and liabilities, denominated in foreign currency are translated at the rates of exchange at the balance sheet date and the resultant gain or loss is recognized in the Profit and Loss Account.

In accordance with the option given in the Ministry of Corporate Affairs Notification No. GSR 225(E) dated 31st March 2009, the Exchange fluctuations arising on reporting of long term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, insofar as they relate to acquisition of a depreciable capital assets, is added to or deducted from the cost of the assets and will be depreciated over the balance life of the asset, and in other cases is accumulated in "Foreign Currency Monetary Item Translation Difference AccountsÃ in the Company"s financial statements and amortized over the balance period of such long term asset/liability but not beyond 31st march 2011, by recognition as income or expenses in each such of the period.

8. Inventory

Cost of Inventories comprises of all cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.

Inventory is valued at cost or market rate whichever is lower using the FIFO method of accounting.

9. Employee Benefits

Short Term Employee Benefits: The company accounts for short term employee benefits viz., salary, bonus and other allowances as and when the services are rendered by employees i.e., on accrual basis of accounting.

Gratuity: The Company provides for Gratuity, a defined benefit retirement plan (Gratuity Plan) covering eligible employees. In accordance with the Payment of Gratuity Act, 1972, the Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date, based upon which, the Company makes necessary and adequate provisions in the books of accounts. The consequent actuarial gain or loss is expensed in the period of accrual of gain or loss.

Employee Stock Options: The options are valued, as per SEBI Guidelines ÃEmployee Stock Option Plans/Employee Stock Purchase PlansÃ, based on the fair market value of the shares on the date of grant. The difference between the fair market value of shares and the exercise price would be expensed off in the year of exercise of the options, net off any receipt of amount from the employee towards exercise of the options.

10. Earnings Per Share:

Basic earnings per equity share are computed by dividing net profit after tax by weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing adjusted net profit after tax by the aggregate of weighted average number of equity shares and dilutive potential equity shares and also includes that of potential conversions from FCCB to equity and vested Employee Stock Option Plan outstanding during the year.

11. Provision for Current Tax and Deferred Income Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

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 substantially enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent there is a reasonable certainty that the asset will be realized in future.

12. Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

13. Accounting of Financial Instruments:

The contractual gains/losses arising out of derivative transactions(Options), are accumulated in Hedging Reserve Account and will be charged off /charged back to Profit and Loss Account at the time of derecognizing of underlying financial liability (FCCB) in accordance with Accounting Standard Ã 30 ÃFinancial Instruments: Recognition and MeasurementÃ issued by Institute of Chartered Accountants of India.

Premium on Redemption of Foreign Currency Convertible Bonds is recognized only in the event of non- conversion of bonds to shares, at the end of maturity period.

14. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized in terms of Accounting Standard - 29: "Provisions, Contingent Liabilities and Contingent Assets", issued by the Institute of Chartered Accountants of India, where there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are recognized only when there is a possible obligation from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets are not recognized in the Financial Statements.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article