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Raghuvansh Agrofarms Limited is a Limited Company in India and incorporated under the provisions of the Companies Act, 1956. It came into
existence on 19.12.1996. The company is primarily engaged in manufacturing and trading of agro products.
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2.1 Basis of accounting and preparation of financial statements
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These Standalone Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these Financial Statements to comply in all material aspects, with the Accounting Standards notified
under the Companies relevant provisions of the Companies Act, 2013. The Financial Statements have been prepared on an accrual basis and under
the historical cost convention except for certain financial instruments which are measured at fair value..The accounting policies adopted in the
preparation of financial statements are consistent with those of previous year except for the change in accounting policy, if any.
2.2 Use of estimates
The preparation of the Financial Statements in conformity with Indian GAAP requires Management to make Judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosures relating to contingent assets and liabilities at the
end of the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in material or immaterial adjustments to the carrying amounts of assets or liabilities in future
periods.
2.3 Inventories
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Inventories are valued at cost, computed on a First-in-First-out (FIFO) basis, and estimated net realizable value whichever is lower. In respect of
finished goods and work in process, appropriate overheads are loaded.
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2.5 Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.
Income is accounted for on accrual basis in accordance with the Accounting Standards (AS) 9- “Revenue Recognition”. Insurance and other claims
are recognized in accounts on lodgment to the extent these are measurable with reasonable certainty of acceptance. Excess/ shortfall is adjusted in
the year of receipt. Interest is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.
2.6 Intangible Assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less
accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets are not capitalized and expensed off in
the Statement of Profit and Loss in the year in which the expenditure is incurred. Intangible assets are amortized on a straight line basis over the
estimated useful economic life. The amortization period and the amortization method are reviewed at least at each financial year end. If the expected
useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly.
2.7 Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on
borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses
incurred up to that date. Any subsidy/ reimbursement/ contribution received for installation and acquisition of any fixed assets is shown as deduction
in the year of receipt. Capital work- in- progress is stated at cost.The Company's livestock comprise of dairy cattle. Livestock are initially recognised
at cost. The cost of newborn calf is assumed to be nil. At each reporting date fair value of livestock is compared with carrying value and any material
variations are recognised through profit and loss statement.
2.8 Investment
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are
classified as current investments. All other investments are classified as long term investments. On initial recognition, all investments are measured
at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current investments are
carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at
cost. However, provision for diminution in values is made to recognize a decline other than temporary in the value of the investments. On disposal of
an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.
2.9 Borrowig Cost
Borrowing cost includes interest. Such costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs
are expensed in the period they occur.
3.0 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted
3.1 Taxes on income
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act,
1961.
Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one
period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or
substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of
unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income
available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty
exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax
assets are reviewed at each Balance Sheet date for their realisability.
Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The company recognizes MAT credit
available as an asset only to the extent there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the
period for which MAT Credit is allowed to be carried forward. In the year in which the Company recognizes MAT Credit as an asset in accordance
with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961,
the said asset is created by way of credit to the statement of Profit and Loss and shown as "MAT Credit Entitlement." The
Company reviews the "MAT Credit Entitlement" asset at each reporting date and writes down the asset to the extent the
company does not have convincing evidence that it will pay normal tax during the sufficient period.
3.2 Impairment of assets
An impairment loss is recognized wherever the carrying amount of fixed assets exceeds the recoverable amount i.e. the higher of the assets' net
selling price and value in use. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life. A
previously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal
is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.
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