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:
Based on the unverified book profits, the Company has made a provision and recommendation
for a dividend of Rs. 0.2/- per fully paid-up equity share of Rs. 10/- each.
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.
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:
There is not Intangible Assets as on 31/03/2026.
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 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
H. INVENTORIES:
Current Year inventory / WIP valued at lower of the cost and net realizable value. Quantity
records not maintain & no physical verification report. (Purchases of Rs. 1,26,56,375/- recorded
solely through book entries).
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. The Company has recognized an operating income of Rs. 2,53,12,750/- from the "sale of
rice" in the last quarter through journal vouchers without corresponding banking transactions
or GST returns.
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.
Income tax expense in the statement of profit and loss comprises: (Rs. In Lakh)
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