a) Basis for preparation of financial statements
The financial statements of the Company have been prepared in accordance with the Generally
Accepted Accounting Principles (GAAP). The Company has prepared these financial statements
to comply in all material respects with the Indian Accounting Standards notified under section
133 of the Companies Act 2013. The financial statements have been prepared on accrual basis
and under the historical cost convention.
b) Property, Plant & Equipment
Property, Plant & Equipment are stated at cost (Net of GST, wherever applicable) less
depreciation. Cost includes freight, duties and taxes and other expenses related to acquisition
c) Impairment
Impairment losses are provided to the extent the carrying amount exceeds their recoverable
amounts. Recoverable amount is the higher of an asset's net selling price and its value in use.
Value in use is present value of estimated future cash flows expected to arise from the
continuing use of the asset and from its disposal at the end of its useful life. Net selling price is
the amount obtainable from sale of the asset in an arm's length transaction between
d) Borrowing costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are
capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended us. All other borrowing costs are charged
e) Inventories
Finished Goods and Raw material are measured at lower of cost and net realisable value. Cost
comprises of purchase cost excluding taxes that are refundable.
f) Revenue Recognition
Revenue from sale of goods is recognized on despatch to customers and is recorded net of GST,
trade discounts and returns.
g) Depreciation & Amortization
Depreciation is charged in the accounts as under:
-Buildings are depreciatiated using Straight Line Method.
-Computers are depreciatiated using Straight Line Method. The assets are depreciated to the
maximum extent. The net value corresponds to the Residual value.
-Paddle wheel is depreciated using Written Down Value Method.
-Depreciation on additions/deletions is worked out on pra^ata-basis r<x»^
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N) Taxes on income
Deferred tax liabilities and deferred tax assets are recognized for the tax effect on the difference
between taxable income and accounting income which are not permanent in nature subject to
the consideration of prudence in the case of deferred tax assets.
i) Earnings per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable
to equity shareholders by the weighted average number of equity shares outstanding during the
period. The weighted average number of equity shares outstanding during the period are
adjusted for events of bonus issue and share split, if any. For the purpose of calculating diluted
earnings per share, the net profit for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the period are adjusted for the effects of
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j) Related Party Transactions
Disclosure of nature of relationships, Related Party Transactions and balances is separately
disclosed in Note 29
k) Segment Reporting
The company has two reportable segments, viz., Information Technology services and
Aquaculture (Shrimps and Fish). Kindly refer Note 30 for relevant disclosures.
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