| a SYSTEM OF ACCOUNTING
The financial statements are prepared under historic cost convention.
Income and expenditure are recognized on accrual basis except dividend
Income and penal interest on loan is accounted for on cash basis.
FIXED ASSETS AND DEPRECIATION
i Fixed assets are stated at cost of acquisition or construction
Inclusive of freight, duties and taxes less Accumulated Depreciation.
ii Lump sum payments made at the time of the lease of agriculture land
are capitalized and are being amortized equally over the period of
lease.
iii Depreciation on Fixed Assets is being, provided on straight-line
method at the rate prescribed in Schedule XIV of the Companies Act,
1956 on pro-rata basis.
c IMPAIRMENT OF ASSETS
As at each balance sheet date, the carrying amount of assets is tested
for impairment so as to determine
i the provision for impairment loss, if any, required or
ii the reversal, if any, required for impairment loss recognized in
previous periods.
Impairment loss is recognized when the carrying amount of an asset
exceed its recoverable amount. Recoverable amount is determined
iii in the case of an individual asset, at the higher of net selling
price and the value in use.
iv in the case of cash generating unit (a group of assets that
generates identified independent cash flows), at higher of the cash
generating unit's selling price and the value in use.
Value in use is determined as the present value of estimated future
cash flow from the continuing use of assets and from its disposal at
the end of its useful life.
d INVESTMENTS
Non-Current Investments are stated at cost Provision for diminution in
the value Of Non-Current Investment is Made if such decline Is other
than temporary in nature
e INVENTORIES
Inventories are valued as under: -
i Agricultural Produce - at realizable value
ii Standing Agricultural Crop- at NIL value
iii Shares and Securities-Scrip-wise at cost or market price whichever
is less. Bonus shares/ units etc. are valued at Nil value.
f SALES
Sales of Agricultural product are accounted for as net of discount,
Freight, brokerage etc on sale.
g CURRENT TAX AND DEFERRED TAX
i Income. Tax is accounted in accordance with AS-22 "Accounting for
taxes on income" issued by ICAI. Deferred income taxes reflect impact
of current year timing difference between taxable income and accounting
income for the year and reversal of timing difference of earlier years.
Deferred tax assets are recognized only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available.
If Current tax is determined as the amount of tax payable in respect of
taxable income using the applicable tax rates and tax laws for the
year.
SEGMENT REPORTING
i Identification : The Company's operating businesses are organized and
managed separately according to the nature of product and services with
each segment representing a strategic business unit that offers
different product and services to different markets.
ii Allocation of common cost : Common allocable costs are allocated to
each segment according to the relative contribution of each segment to
the total common costs.
Iii Unallocable Items: includes general corporate incomes and expenses
items which are not allocated to any business segment.
iv Segment Policies: The company prepares its segment information in
conformity with the accounting policies adopted for preparing the
financial statement of the company as a whole
EMPLOYEE BENEFITS
Short term employee benefits are recognized as an expense at the
undiscounted amount in which the related service is rendered
ii There is no liability of the company as of now towards gratuity or
any other long term benefits payable to employees.
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