General Information
The company was incorporated on 03-08-1994. The company is engaged in the processing of Frozen foods (Green Peas). The company has not done business activity during the year.
Note No. 1 Significant Accounting Policies and key accounting estimates:
Basis of preparation of financial statements:
1) The financial statements are prepared under the historical cost convention and have been prepared in accordance with applicable mandatory Indian Accounting Standards (IND-AS) and relevant presentational requirements of the Companies Act, 2013.
2) The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principle in India. Accounting policies have been consistently applied except when IND-AS were initially adopted.
3) The preparation of financial statements in conformity with generally accepted accounting principle requires management to make estimates and assumption that affect the reported amount of assets and liabilities and disclosure of contingent liabilities and commitments at the end of the reporting period and results of operations during the reporting period. Although these estimates are based upon the management's best knowledge of current events and actions, actual results could differ from those estimates. Difference between the actual result and estimates are recognized in the period which the results are known/materialized.
4) Property Plant and equipment are stated at cost less depreciation. The cost of these includes interest on specific borrowings obtained for the purpose or acquiring up to the date of commissioning of the assets and other incidental expenses incurred up to that date.
5) Plant and Machinery includes expenses incurred on erection and commissioning, foundation, laboratory equipment, air and water pollution devices, electric installation, technical know-how fees, tools, and miscellaneous fixed assets other than land, building, furniture & fixture, vehicles, office equipment's computer equipment's and air conditioning equipment's. Technical know-how fee is inseparable and hence treated as part of plant & machinery. No adjustment is required to be made as per Indian accounting standard 38 on intangible assets, issued by the Institute of Chartered Accountants of India. Agricultural land valued at Rs. 1,90,13,150/- Situated at Sahabad Garhi, Mawana, Meeruth (UP) is under dispute.
6) Expenditure related to and incurred during implementation of new/expansion-cum-modernization projects is included under capital work in progress and the same is allocated to the respective tangible assets on completion of its construction/erection.
7) Useful lives of property, plant and equipment and intangible assets:
Charge in respect of periodic depreciation of these assets is derived after determining an estimate of expected useful life and expected residual value at the end of their life. This estimates of useful life and residual value are determined by the management at the time of acquisition.
8) Employee benefits
Provision for employee benefits charged on accrual basis is determined based on Indian Accounting standard 19 "Employees Benefits" issued by the Institute of Chartered Accountants of India. No provision for Gratuity and Leave encashment has been made during the year.
(i) Short-term benefits
All employee benefits payable wholly within twelve months of rendering service are classified as short term-benefits and are recognized in the period in which employee renders service.
(ii) Post-employment benefits
Gratuity liability is provided for on the basis of actuarial valuation.
(iii) Leave salary
Liability towards leave salary is calculated and settled at the time of termination of employment.
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