A. BASIS OF ACCOUNTING: a. The financial statements have been prepared in accordance with Indian
Accounting Standards (Ind AS), under the historical cost convention on accrual basis, the provisions of
the companies Act, 2013 (“the Act’) (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) Rule 2015 and relevant amendment rules issued
thereafter. b. Effective April 1, 2017, 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, with
April 1, 2016 as the transition date. 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.
B. USE OF ESTIMATES: The preparation of the Financial Statements are in conformity with Generally
Accepted Accounting Principles requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including contingent liabilities) and the
reported amounts of income and expenditure during the period. The Management believes that the
estimates used in preparation of the Financial Statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the actual results and the estimates are
recognized in the period in which the results are known/ materialized.
C. DIVIDEND: The company has declared/made a provision for dividend of Rs. 0.04 per fully paid-up
equity share of Re. 1 /- each out of the reported book profits for the current year.
D. PROPERTY, PLANT AND EQUIPMENTS: Property, Plant and Equipments has been recorded at
actual cost inclusive of duties, taxes and other residual expenses related to acquisition, improvement
and installation. The company depreciates property, plant and equipments over their estimated useful
lives using the WDV method. (Note: During the year, the management has entirely written off the gross
value of fixed assets and the corresponding accumulated depreciation).
The estimated useful lives of assets are as under:
For transaction to Ind AS, the Company has elected to continue with the carrying value of all of its
property, plant and equipments recognized as of April 1, 2016 (transition date) measured as per the
previous GAAP and use that carrying value as its deemed cost as of the transition date.
Intangible Assets: Intangible Assets are stated at cost of acquisition or less accumulated amortization.
No depreciation on IPO expenses and goodwill.
E. IMPAIRMENT OF ASSETS: Assets are reviewed for impairment losses whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount,
which is the higher of an asset’s net selling price and value in use.
F. INVESTMENTS: Current/Non-current investments are carried individually at cost subject to
verification, Cost of investments includes acquisition charges such as brokerage, fees and duties if any.
Investments carried at cost. (In Rs. Crores)
G. BORROWING COST AND FINANCE CHARGES: Borrowing costs directly attributable to the
acquisition or construction of an asset that necessarily takes a substantial period of time to get ready
for its intended use are capitalized as part of the cost of the asset until such time that the assets are
substantially ready for their intended use. Capitalization of borrowing costs is suspended and charged
to profit and loss during the extended periods when the active development on the qualifying assets is
interrupted. Qualifying fixed asset is an asset that necessarily takes a substantial period of time to get
ready for their intended use or sale. All other borrowing costs are not charged to statement of Profit
and Loss over the tenure of the borrowing.
H. INVENTORIES: Current Year inventory / WIP valued at lower of the cost and net realizable value.
Quantity records not maintain & no physical verification report. (Note: The management recognized
agro-commodity trading transactions entirely via book entries without physical inventory).
I. REVENUE RECOGNITION: Revenue is recognized to the extent it is probable that the economic
benefits will flow to the company and the revenue can be reliably measured, regardless of when the
payment is being made. Revenue is measured at the fair value of the consideration received or
receivable, taking into account contractually defined terms of payment and excluding taxes or duty
except turn over with related party. The Company assesses its revenue arrangements against specific
criteria to determine if it is acting as principle or agent. The company has concluded that it is acting as
a principal is all of its revenue arrangements except interest on loan and advances & investments. (Note:
For the current year, revenue of Rs. 2.50 Crores has been recorded via journal entries without supporting
evidence).
J. TAXATION: Taxes on Income are accounted in the same period to which the revenue and expenses
relate. Provision for current income tax is made on the basis of estimated taxable income, in accordance
with the provisions of the Income Tax Act, 1961 and rules framed the under Deferred tax is the tax effect
of timing difference The timing differences are differences between the taxable income and accounting
Income for a period that originate in one period and are capable of reversal in one or more subsequent
periods.
MAT 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. Income tax expense in the statement
of profit and loss comprises: (income tax provision have not been made for currecnt year)(Rs. In Lakh)
|