Accounting Policies of RKD Agri & Retail Ltd. Company

Mar 31, 2024

1. Company Information

RKD AGRI & RETAIL LIMITED (""the Company"") is a public limited Company domiciled in India. The registered office of the Company is at 52 Rayfreda Building, Junction Of Mahakali Caves, Holy Family Church, Chakala, MIDC, Mumbai - 400093

The Company was incorporated on 30th April 1986. The Company is engaged in the "Retail and wholesale trade of Printing & stationery, Bags and in Agriculture & Allied Activities."

The equity shares of the Company are listed on the Bombay Stock Exchange (BSE) in India.

2. Summary of Significant Accounting Policies

(A) Basis of Preparation of Financial Statements:

(i) Compliance with Ind AS: The standalone financial statements have been prepared to comply, in all material aspects, with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, read with Companies (Indian Accounting Standards) Rules, 2015 and the relevant provisions of the Companies Act, 2013.

Effective 1st April, 2017, the Company has adopted Ind AS and adoption was carried out in accordance with Ind AS 101.

Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(ii) Classification of assets and liabilities: All assets and liabilities have been classified as current or non-current based on the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Deferred tax assets and liabilities are classified as non-current on net basis.

(iii) Historical cost convention: The financial statements have been prepared on going concern basis under the historical cost convention.

(iv) Functional and presentation currency: The Company''s functional and presentation currency is Indian Rupee. All amounts disclosed in the financial statements and notes have been rounded off to the nearest rupee

(B) Property, Plant and Equipment:

(i) All plant and equipment are shown at cost (net of adjustable taxes) less accumulated depreciation. The cost of an asset comprises of its purchase price, non-refundable / adjustable purchase taxes and any cost directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by the management, the initial estimate of any decommissioning obligation, if any and for assets that necessarily take a substantial period of time to get ready for their intended use, finance costs. The purchase price is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. The cost also includes trial run cost and other operating expenses such as freight, installation charges etc.

(ii) Stores and spares which meet the definition of property, plant and equipment and satisfy the recognition criteria of Ind AS 16 are capitalised as property, plant and equipment.

(iii) An Item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset or significant part) is included in the Statement of Profit and Loss when the asset is derecognised.

(iv) In line with the provisions of Schedule II to the Companies Act, 2013, the Company depreciates significant components of the main asset (which have different useful lives as compared to the main asset) based on the individual useful life of those components. Useful life for such components of property, plant and equipment has been assessed based on the historical experience and internal technical inputs.

(v) The residual values and useful lives of property, plant and equipment are reviewed at each financial year end, and changes, if any, are accounted prospectively.

(C) Borrowing Costs:

(i) Borrowing costs are charged to Statement of Profit and Loss except to the extent attributable to acquisition /construction of and asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

(ii) Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(D) Inventories:

Inventories are valued as follows:

Finished goods Lower of cost and net realizable value. Cost includes direct materials and labour Cost is determined on a First in First out (FIFO) basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

(E) Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

(i) Sale of Goods:

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. The Company collects goods and service tax (GST) on behalf of the government and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue.

(ii) Others:

Revenue is recognised in respect of scheme discount, discount received etc., when it is reasonably certain that the ultimate collection will be made.

(F) Employee Benefits:

All employee benefits payable wholly within 12 months of rendering services are classified as short term employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the expected cost of bonus are recognised during the period in which the employee renders related service.

(G) Taxation:

Income tax expense comprises of current tax expense and the net change in the deferred tax asset or liability during the year.

(i) 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.

(ii) Deferred Tax: Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

(H) Segment Reporting:

Ind AS - 108 relating to “Operating Segment” is applicable to the Company.

(I) Earning per share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.

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 dilutive potential equity shares.

(J) Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as as result of past events, for which it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(K) Trade and other payables:

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial period which are unpaid. The amounts are unsecured and are usually paid within twelve months of recognition. Trade and other payables are presented as current liabilities unless payment is not due within twelve months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.

(L) Financial Instruments: i) Financial Asset

Financial Assets are measured at amortised cost or fair value through Other Comprehensive Income or fair value through Profit or Loss, depending on its business model for managing those financial assets and the assets contractual cash flow Characteristics.

Subsequent measurements of financial assets are dependent on initial categorisation. For impairment purposes significant financial assets are tested on an individual basis, other financial assets are assessed collectively in groups that share similar credit risk characteristics.

ii) Financial Liability

At initial recognition, all financial liabilities other than fair valued through profit and loss are recognised initially at fair value less transaction costs that are attributable to the issue of financial liability.

(M) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

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Mar 31, 2014

1. Method of Accounts: The Financial Statements have been prepared under the historical cost convention, in accordance with the Generally Accepted Accounting Principles accepted in India and the provisions of the Companies Act, 1956, as adopted consistently by the Company. Method of accounting employed by the company is generally mercantile both as to income and expenditure. All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

The preparation of financial statements in conformity with accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of financial statements, and the reported amounts of revenues and expenses during the reporting period.

2. Revenue Recognition: There is no transaction in nature of trading or manufacturing during the year. The commission income is recognised on acceptance basis.

3. Fixed Assets & Depreciation: There is no fixed assets at the end of the year.

4. Inventories: There are no inventories as at the beginning as well as at the end of the year.

5. Investment: Investments being long term are stated at cost. Investments are subject to physical verification and reconciliation thereof with actual quantity as regards the numbers of investment, which might have been increased due to conversion, bonus if any or decreased due to conversion from one form to another. The details shown in NOTE "5" of the Balance Sheet is taken as certified and valued by management. Further on account what is stated above, the market values of quoted shares are not determined.

6. Retirement Benefits :

(i) Provident Fund: Since there is no employee eligible for Provident Fund at the date of financial statement, no provision for Provident Fund has been made in books of account.

(ii) Gratuity: Since there is no employee eligible for gratuity at the date of financial statement, no provision for gratuity has been made in books of account.

7. Contingency :

(i) Sundry Creditors, Debtors and Loans and Advances including borrowings and cash credit from bank are subject to confirmation and reconciliation with respect to individual details. Same are taken as certified by management and necessary adjustments in this respect have been carried out and further be carried out on ascertainment of amounts thereof.

8. Contingent Liabilities: There is no Contingent liability for the year.

9. Taxation: No provision for Taxation and deferred taxation has been provided in the books of account.

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Mar 31, 2013

1. Method of Accounts: The Financial Statements have been prepared under the historical cost convention, in accordance with the Generally Accepted Accounting Principles accepted in India and the provisions of the Companies Act. 1956. as adopted consistently by the Company. Method of accounting employed by the company is generally mercantile both as to income and expenditure. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

The preparation of financial statements in conformity with accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of financial statements, and the reported amounts of revenues and expenses during the reporting period.

2. Revenue Recognition: There is no transaction in nature of trading or manufacturing during the year. The commission income is recognized on acceptance basis.

3. Fixed Assets & Depreciation: There is no fixed assets at the end of the year.

4. Inventories: There are no inventories as at the beginning as well as at the end of the year.

5. Investment: Investments being long term are stated at cost. Investments are subject to physical verification and reconciliation thereof with actual quantity as regards the numbers of investment. which might have been increased due to conversion, bonus if any or decreased due to conversion from one form to another. The details shown in NOTE "5" of the Balance Sheet is taken as certified and valued by management. Further on account what is stated above, the market values of quoted shares are not determined.

6. Interest on Borrowings: The Interest on cash credit account with Union Bank of India has been charged against the profit for the current year since the said interest has been charged by the bank in its books on settlement basis of this account with bank.

7. Retirement Benefits:

(I) Provident Fund: Since there is no employee eligible for Provident Fund at the date of financial statement, no provision for Provident Fund has been made in books of account.

(ii) Gratuity: Since there is no employee eligible for gratuity at the date of financial statement, no provision for gratuity has been made in books of account.

8. Contingency:

(i) Sundry Creditors, Debtors and Loans and Advances including borrowings and cash credit from bank are subject to confirmation and reconciliation with respect to individual details. Same are taken as certified by , management and necessary adjustments in this respect have been carried out and further be carried out on ascertainment of amounts thereof.

9. Contingent Liabilities: There is no Contingent liability for the year.

10. Taxation: No provision for Taxation and deferred taxation has been provided in the books of account.

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Mar 31, 2011

1. Method of Accounts: The Financial Statements have been prepared under the historical cost convention, in accordance with the Generally Accepted Accounting Principles accepted in India and the provisions of the Companies Act, 1956, as adopted consistently by the Company. Method of accounting employed by the company is generally mercantile both as to income and expenditure. All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

The preparation of financial statements in conformity with accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of financial statements, and the reported amounts of revenues and expenses during the reporting period.

2. Revenue Recognition: There is no transaction in nature of trading or manufacturing during the year. Other Income has been accounted on receipt basis.

3. Fixed Assets & Depreciation : There is no fixed assets at the end of the year.

4. Inventories: There are no inventories as at the beginning as well as at the end of the year.

5. Investment: Investments being long term are stated at cost. Investments are subject to physical verification and reconciliation thereof with actual quantity as regards the numbers of investment, which might have been increased due to conversion, bonus if any or decreased due to conversion from one form to another. The details shown in Schedule 'E' of the Balance Sheet is taken as certified and valued by management. Further on account what is stated above, the market values of quoted shares are not determined.

6. Interest on Borrowings: The Interest on cash credit account with Union Bank of India has not been charged against the profit for the current year since the said interest has not been charged by the bank in its books and account is NPA under settlement and it is further subject to reconciliation on availability of statement.

7. Retirement Benefits :

(i) Provident Fund: Since there is no employee eligible for Provident Fund at the date of financial statement, no provision for Provident Fund has been made in books of account.

(ii) Gratuity: Since there is no employee eligible for gratuity at the date of financial statement, no provision for gratuity has been made in books of account.

8. Contingency :

(i) Sundry Creditors, Debtors and Loans and Advances including borrowings and cash credit from bank are subject to confirmation and reconciliation with respect to individual details. Same are taken as certified by management and necessary adjustments in this respect have been carried out and further be carried out on ascertainment of amounts thereof

9. Contingent Liabilities: The Company has Cash Credit Account with Union Bank of India, Udhna on which the bank has not charged interest in their books on this account and hence the company has not debited the interest on Cash Credit Account. The amount of interest and the contingent liabilities thereof has not been quantified, since the Company had corresponded for the bank for settlement.

10. Taxation: No provision for Taxation and deferred taxation has been provided in the books of account.

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Mar 31, 2010

1. Method of Accounts: The Financial Statements have been prepared under the historical cost convention, in accordance with the Generally Accepted Accounting Principles accepted in India and the provisions of the Companies Act, 1956, as adopted consistently by the Company. Method of accounting employed by the company is generally mercantile both as to income and expenditure. All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

The preparation of financial statements in conformity with accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of financial statements, and the reported amounts of revenues and expenses during the reporting period.

2. Revenue Recognition: There is no transaction in nature of trading or manufacturing during the year. Other Income has been accounted on receipt basis.

3. Fixed Assets & Depreciation : There is no fixed assets at the end of the year.

4. Inventories: There are no inventories as at the beginning as well as at the end of the year.

5. Investment: Investments being long term are stated at cost. Investments are subject to physical verification and reconciliation thereof with actual quantity as regards the numbers of investment, which might have been increased due to conversion, bonus if any or decreased due to conversion from one form to another. The.details shown in Schedule * F' of the Balance Sheet is taken as certified and value.d by management. Further on account what is stated above, the market values of quoted shares are not determined.

6. Retirement Benefits : (i) Provident Fund: Since there is no employee eligible for Provident Fund at the date of financial statement; no provision for Provident Fund has been made in books of account.

(ii) Gratuity: Since there is no employee eligible for gratuity at the date of financial statement, no provision for gratuity has been made in books of account.

7. Interest on Borrowings; The Interest on cash credit account with Union Bank of India has not been charged against the profit for the current year since the said interest has not been charged by the bank in its books and it is further subject to reconciliation on availability of statement.

8. Contingency:

(i) Sundry Creditors, Debtors and Loans and Advances including borrowings and cash credit from bank are subject to confirmation and reconciliation with respect to individual details. Same are taken as certified by management and necessary adjustments in this respect have been carried out and further be carried out on ascertainment of amounts thereof.

9. Contingent Liabilities: The Company has Cash Credit Account with Union Bank of India, Udhna on which the bank has not charged interest in their books on this account and hence the company has not debited the interest on Cash Credit Account. The amount of interest and the contingent liabilities thereof has not been quantified, since the Company had corresponded for the bank statement & interest thereon, and bank has not provided any statement of said cash credit account along with detail of interest.

10. Dividend Account With Union Bank of India: The Company has Dividend Account with Union Bank of India, Udhna, the balance with same Bank is subject to reconciliation.

11. Taxation: No provision for Taxation and deferred taxation has been provided in the books of account.