Accounting Policies of Newtrac Foods & Beverages Ltd. Company

Mar 31, 2024

II) SIGNIFICANT ACCOUNTING POLICIES

a. BASIS OF PREPARATION:

The financial statements have been prepared in accordance with Indian Accounting
Standards (hereafter referred to as the ''Ind AS'') as notified by Ministry of Corporate
Affairs pursuant to Section 133 of Companies Act, 2013 (the "Act") read with
Companies (Indian Accounting Standards (Ind AS)) Rules, 2015 and other relevant
provisions of the Act.

These financial statements are for the year ended 31st March 2024, are the
financials with comparatives prepared under Ind AS for all previous periods including
the year ended 31^st March 2017, the company had prepared its financial statement
in accordance with accounting standard notified under the Companies (Accounting
Standard) Rule 2006 (as amended) and other relevant provision of the Act
(hereinafter referred to as the ''Previous GAAP'') used for the statutory reporting
requirement of India.

The financial statements have been prepared on accrual and going concern basis.
The accounting polies are applied consistently to all period presented in the financial
statements, including the preparation of the opening Ind AS balance sheet as at 1^st
April 2016 being the date of transition to Ind AS.

b. USE OF ESTIMATES

The preparation of the financial statements, in conformity with the recognition and
measurement principles of Ind AS, requires the management to make estimates and
assumptions that affect the reported amounts of assets and liabilities as at the date
of financial statements and the results of operation during the reported period.
Although these estimates are based upon management''s best knowledge of current
events and actions, actual results could differ from these estimates which are
recognized in the period in which they are determined.

c. OPERATING CYCLE FOR CURRENT AND NON-CURRENT CLASSIFICATION

The Company presents assets and liabilities in the balance sheet based on current
/non-current classification.

All the assets and liabilities have been classified as current or non-current, wherever
applicable, as per the operating cycle of the Company as per the guidance set out in
Schedule III to the Act.

The operating cycle is the time between the acquisition of assets for processing and
their realisation in cash or cash equivalents. Based on the nature of activities of the
Company and the normal time between acquisition of assets and their realization in
cash or cash equivalents, the company has determined its operating cycle as 12
months for classification of its assets and liabilities as current and non-current.

d. PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment are stated at cost of acquisition including attributable
interest and finance costs, if any, till the date of acquisition/ installation of the assets
less accumulated depreciation and accumulated impairment losses, if any.

Subsequent expenditure relating to Property, Plant and Equipment is capitalised only
when it is probable that future economic benefits associated with the item will flow
to the Company and the cost of the item can be measured reliably. All other repairs
and maintenance costs are charged to the Statement of Profit and Loss as incurred.
The cost and related accumulated depreciation are eliminated from the financial
statements, either on disposal or when retired from active use and the resultant gain
or loss are recognised in the Statement of Profit and Loss.

Capital work-in-progress, representing expenditure incurred in respect of assets
under development and not ready for their intended use, are carried at cost. Cost
includes related acquisition expenses, construction cost, related borrowing cost and
other direct expenditure.

e. DEPRECIATION/AMORTISATION ON FIXED ASSETS

Depreciation on Fixed Assets is provided on straight-line method in accordance with
life of assets specified in Part C of Schedule II to the Companies Act, 2013 as per
details given below:

AMORTISATION

Expenses incurred on Computer Software are amortized on straight line basis over a
period of three years.

ASSETS ACQUIRED IN SATISFACTION OF CLAIMS

Assets acquired in satisfaction of claim has been accounted at fair value of the assets
acquired and is marked down by a subsequent reduction in the Net Realisable Value,
if any.

f. IMPAIRMENT OF NON-FINANCIAL ASSETS

Non- financial assets other than inventories and non-current assets held for sale are
reviewed at each balance sheet date to determine whether there is any indication. If
any such indication exists or when annual impairment testing for an asset required,
the company estimates the asset''s recoverable amount. The recoverable amount is
higher of assets or cash generating units (CGU) fair value less cost of disposal and its
value in use. Recoverable amount is determined for an individual asset, unless the
asset does not generate cash flow that is largely independent of those from other
assets or group of assets.

When the carrying amount of an assets or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount.

g. STOCK IN TRADE

Stock in trade is valued at weighted average cost or net realisable value whichever is
lower.

h. CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purpose of cash flow statement comprise cash in
hand, balances in current accounts with scheduled banks and bank deposits.

i. REVENUE RECOGNITION

Revenue in respect of sale of goods is recognized when risk and reward of ownership
are transferred. The sales are accounted net of goods and service tax. Further goods
returned or rejected are accounted in the year of return/rejection.

j. TAXES ON INCOME

Current tax is determined on the basis of the amount of tax payable in respect of
taxable income for the year.

Deferred tax is calculated at tax rates that have been enacted or substantively
enacted at the Balance Sheet date and is recognized on timing differences, being the
difference between the taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods. Deferred tax
assets subject to the consideration of prudence, are recognized and carried forward
only to the extent that there is a reasonable/virtual certainty that sufficient future
taxable income will be available against which such deferred tax asset can be
realized.

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Mar 31, 2014

1.1 Basis of Preparation of Financial Statements: The Financial Statements have been prepared under the historical cost convention on accrual basis. The mandatory applicable accounting standards in India and the provisions of Companies Act, 1956 have been followed in preparation of these financial statements.

All assets and liabilities have been classified as current or non-current as per the operating cycle criteria set out in the Revised Schedule VI to the Companies Act, 1956.

1.2 Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. Cost comprises of freight, duties, taxes, interest and other incidental expenses related to acquisition & installation.

1.3 Depreciation and Amortisation:

i) Leasehold land is amortised over the period of lease ii) Buildings (including Roads & Drains) is provided under straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

1.4 Investments:

Investments are stated at cost less provision for diminution in value other than temporary, if any. 1.5 Retirement Benefits:

i) Since during the year there were no employees in the company therefore there is no liability in respect of Gratuity.

ii) Since during the year there were no employees in the company therefore there is no liability in respect of Leave Benefits. 1.6 Taxation:

i) Current Tax:

Provision for current income tax is made on the taxable income using the applicable tax rates and tax laws as per the provisions of Income Tax Act, 1961.

ii) Deferred Tax:

The Deferred tax charge or credit is recognised using prevailing enacted tax rate. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the period and available case law to reassess realization / liabilities.

iii) Minimum Alternate Tax (MAT) credit:

MAT is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the period specified. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by the ICAI, the said asset is created by way of accredit to the statement of Profit and Loss and is shown as MAT Credit Entitlement. The Company reviews the same at each Balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

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Mar 31, 2012

1 1 Basis of Preparation of Financial Statemen

1.2 Depreciation and Amortisation:

i) Leasehold land is amortised over the period of lease.

ii) Buildings (including Roads 4 Drains) „ provided under

1.3 Investments:

Investments are staled at cost less provision for dimmution in value other than temporary, if any.

1.4 Retirement Benefits:

i) Since during the year there were no employees in the company therefore there Is no lability in respect of Gratuity.

ii) Since during the year there were no employees in the company therefore there is no lability in respect of Leave Benefits!

1.5 Taxation:

10 Deferred Tax: The Defend tax charge or credit is recognised using prevaiiing enacted tax rate. Where there is mabsorbed depreciation or carry forward losses, deferred tax assets ere recognized oniy i, there is virtue, certainty of realization of such assets. Other deferred tax assets Z reoogn^d only ,0 the extent there Is reasonahie certainty of reason in More. Oeferred tax assets , are raviewed as „ eaen J^ sheet date based on developments during the period and available case law to reassess realization / liabilities.

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Mar 31, 2011

A. System of Accounting

The Company generally adopts the accrual basis in the preparation of the Accounts i.e. the Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned or incurred except in case of significant uncertainties.

B Fixed Assets & Depreciation

Fixed assets are stated at cost less depreciation.

Depreciation has been provided in the Books, on the following basis.

a Leasehold land is amortised over the period of lease.

b Buildings (including Roads & Drains) is provided under straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

C Investments :

Investments are stated at cost.

D Gratuity

Since in the year end there were no employees in the company therefore there is no liability in respect of the same.

E Leave Pay

Since in the year end there were no employees in the company therefore there is no liability in respect of the same.

F Taxation :

Income Tax expenses comprises Current tax, Deferred tax charge or credit and Fringe benefit tax . Provision for current tax is made only on the assessable income at the tax rate applicable in the relevant assessment year. The Deferred tax charge or credit is recognised using prevailing enacted tax rate. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the period and available case law to reassess realization / liabilities.

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Mar 31, 2010

A. System of Accounting

The Company generally adopts the accrual basis in the preparation of the Accounts i.e. the Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned or incurred except in case of significant uncertainties.

B Fixed Assets & Depreciation

Fixed assets are stated at cost less depriciation.

Depreciation has been provided in the Books, on the following basis..

a Leasehold land is amortied over the period of lease.

b Buildings (including Roads & Drains) is provided under straight line method st the rates specified in Schedule XIV of the Companies Act, 1956.

C Investments:

Investments are stated at cost.

D Gratuity

Since in the year end there were no employees in the company therefore there is no liability in respect of the same.

E Leave Pay

Since in the year end there were no employees in the company therefore there is no liability in respect of the same.

F Taxation:

Income Tax expenses comprises Current tax, Deferred tax charge or credit and Fringe benefit tax . Provision for current tax is made only on the assessable income at the tax rate applicable in the relevant assessment year. The Deferred tax charge or credit is recognised using prevailing enacted tax rate. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the period and available case law to reassess realization / liabilities.