| 1. Corporate Information
NUWAY ORGANIC NATURAL INDIA LTD. (the Company) is a public limited
company domiciled in India and incorporated on July 10, 1995 under the
provisions of Indian Companies Act, 1956. The Company is in the
business of the manufacturing whisky, rum, gin and other alcoholic /
non alcoholic drinks. The company is having manufacturing plant for
alcoholic drinks at Rajpura in Punjab. The company also deals in
cosmetics items.
2. Basic of Preparation
The financial statements are prepared on accrual basis under the
historical cost convention in accordance with the generally accepted
accounting principles in India and to comply with the Accounting
Standards referred to in subsection(10)of section 143 of the
CompaniesAct,2013 including the Rules framed there under
3. Use of estimates
The preparation of financial statement in conformity with the generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of the assets and liabilities on
the date of the date of financial statement and reported amount &
Revenue and Expenses during the reporting period. Differences between
Actual and estimates are recongnised in the period in which result get
materialized.
4. Significant accounting policies: a Revenue recognition
Revenue /Income from sale of traded goods is recognized on dispatch of
goods. Sales are exclusive of Sales Tax which ever applicable.
Interest on deployment of funds is recognized on accrual basis.
Dividend income is recognized on receipt. Profit on sale of investment
is recognized on sale of investment.
b Fixed Assets
Fixed assets of the company were stated at cost of acquisition less
accumulated depreciation. Cost is inclusive of freight, duties, levies,
any directly attributable cost of bringing the assets to their working
condition for their intended use.
c Depreciation
Depreciation on fixed assets has been charged on Diminishing Balance
Method at the rates prescribed in schedule-XIV of the Companies Act
1956 as amended in 1993. Depreciation on additions was charged on pro-
rata basis relating to the period of use of such assets.
d Inventories
Inventories are valued on the following bases: Raw material At cost or
net reliable value whichever is lower. Cost is ascertained on FIFO
basis.
At cost or net realisable value whichever is lower. Cost includes
direct material. Work-in-progress (net of Cenvator VAT, if any)and
direct labour and proportion of Manufacturing overheads based on normal
working capacity.
Finished Goods At cost (inclusive of Excise Duties) or net realisable
value whichever is lower.
Costincludesdirectmaterial(netofCenvatorVATifany)anddirectlabourand
proportion of Manufacturing overheads based on normal working capacity.
e Cash Flow Statement
Cash Flow Statement has been prepared on indirect method as per the
guidelines and AS-3 issued by ICAI
Taxes on Income
Tax expense comprises current income tax and deferred income tax Income
Tax is measured at the amount expected to be paid to the Tax
Authorities in accordance with the Income Tax Act, 1961 using the tax
rates as per the Tax Law that have been enacted or substantively
enacted as on the date of the Balance Sheet.
Deferred Tax Assets and Liabilities are recognized on timing
differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods in accordance with the Accounting Standard
22 "Accounting for Taxes on Income", issued by the Institute of
Chartered Accountants of India. Deferred Tax Assets and Liabilities are
recognized using the tax rates as per the Tax Law that have been
enacted or substantively enacted as on the date of the Balance Sheet
g Investments
Long Term Investments are carried at cost, however, provision for
diminution in the value of Investment is made only if Auccha decline is
other than temporary in the opinion of management.
h Miscellaneous Expenditure
Expenses incurred for Capital Enhancement are capitalized in
Pre-operative Expense (Pending Written off) and 1/5th of said expenses
are being written off against the profits of the company.
i. Employee benefits
No Provision has been made for Gratuity during the year as the same is
being accounted for on cash basis.
No Provision for earned leave has been made in the accounts for the
year. It will be charged to revenue as and when paid.
j Contingent Liabilities and provisions:
Provisions involving substantial degree of estimation in measurement
are recognized when there is present obligation as a result of past
events and it is possible that there will be an outflow of resources
Contingent Liabilities are not recognized in the financial statements
but are disclosed in the note of accounts. Contingent assets are neither
recognized and nor disclosed in financial statements.
k Borrowing Cost
Borrowing cost that are directly attributable to acquisition or
construction of qualifying assets has been capitalized as part of such
asset as perAS-16 on Borrowing Costs issued by the ICAI. All other
borrowing cost are charged to revenue in the period when they are
incurred
I. Earning Per Share
EPS is calculated by dividing the net profit for the year attributable
to equity shareholders by the weighted average no. of equity shares
outstanding during the year as per AS-20 issued by the ICAI
m. Impairment of assets
Fixed Assets are assessed annually on the balance sheet date having
regard to the internal and external source of information so as to
analyze whether any impairment of the asset has taken place.
If the recoverable amount, represented by the higher of net selling
price or the value in use, is less than the carrying amount of cash -
generated unit the difference is recognized as impairment loss and
debited to P & L account.
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