The financial statements have been prepared to comply in all material
aspects with all the applicable accounting principles in India, the
applicable accounting standards, notified u/s 211(3C) of the Companies
Act, 1956 [Companies (Accounting Standards) Rules, 2006, as ammended]
and the relevant provisions of the Companies Act, 1956 and/or the
notified sections of Companies Act, 2013, to the extent applicable. A
summary of important accounting policies which have been applied
consistently, are set out below. Financial Statements have also been
prepared in accordance with relevant presentational requirements of the
Companies Act, 1956 of India.
1.2 BASIS OF ACCOUNTING
The financial statements have been prepared in accordance with the
historical cost convention and on accrual basis. All assets and
liabilities have been classified as current or non current as per the
Company''s normal operating cycle and other criteria set out in the
Schedule VI to the Companies Act 1956. The Company has ascertained its
operating cycle as twelve months for the purpose of current and non
current classification of assets and liabilities.
1.3 FIXED ASSETS
Fixed assets are stated at cost of acquisition together with any
incidental expenses of acquisition.
Depreciation on fixed assets other than Livestock and Estate &
Development has been provided on Written Down value method in
accordance with Schedule XIV of the Companies Act, 1956. Estate &
Development is not depreciated. Livestock is expensed over its useful
All expenditure incurred for extension of new areas of cultivation are
capitalised. However, cost of upkeep and maintenance and cost of
replanting in existing areas are charged to revenue.
Subsidies from Government in respect of fixed assets are deducted from
the cost of respective assets.
Profit or Loss on disposal of Fixed Assets is recognised in the
Statement of Profit and Loss.
Cost of software is capitalised where it is expected to provide future
enduring economic benefits. Capitalisation costs include licence fees
and cost of implementation / system integration services. The costs are
capitalised in the year in which the relevant software is implemented
for use. Expenses incurred on upgradation / enhancements is charged off
as revenue expenditure unless they bring similar significant additional
Capitalised software costs is amortised on a straight line basis over a
period of five years.
1.3.3 IMPAIRMENT OF FIXED ASSETS
An impairment loss is recognised where applicable, when the carrying
value of the fixed assets of a cash generating unit exceeds its net
selling price or value in use, whichever is higher.
Long Term Investments are stated at cost and where applicable,
provision is made in case of other than temporary diminution in value
of investments.Current investments are stated at lower of cost or fair
Inventories are valued at lower of cost and net realisable value. Cost
is determined on weighted average basis. Cost comprises expenditure
incurred in the normal course of business in bringing such inventories
to their location and condition and includes appropriate overheads.
Provision is made for obsolete and slow moving stocks where necessary.
1.6 RESEARCH AND DEVELOPMENT
Research and Development Expenditure of revenue nature is charged to
the Statement of Profit and Loss and capital expenditure is treated as
1.7 RETIREMENT BENEFITS
The Company operates defined contribution schemes like Provident Fund
and defined Contribution Pension Schemes.
The Company makes regular contribution to provident funds which are
fully funded and administered by Government and are independent of
Company''s finance. Contributions are recognized in Statement of
Profit and Loss on an accrual basis. The Company operates a non
contributory defined contribution pension scheme for certain employees.
The Company contributes 15% of the employees'' current salary to the
above contribution fund which is recognised in the Statement of Profit
The Company also operates defined benefit Provident Fund Schemes for
certain employees which are fully funded and administered by trustees
and are independent of the Company''s finance .The Company makes
regular contributions to the fund and shortfall if any,determined by
annual actuarial valuation, is recognized in the Statement of Profit
Defined Benefit Gratuity Plan is maintained by the company for all its
eligible employees. The Company also operates a Non Contributory
Defined Benefit Pension Scheme for certain employees. The Company
contributes to such funds on the basis of actuarial valuation at the
end of each year after setting off any net asset in respect of either
fund. Both the Pension Fund and gratuity fund are administered by the
Trustees and is independent of the Company''s finance.
For Schemes where recognized funds have been set up annual
contributions determined as payable in the actuarial valuation report
are contributed. Actuarial gains & losses are recognized in the
Statement of Profit and Loss. The Company recognizes in the Statement
of Profit and Loss gains or losses on curtailment or settlement of a
defined benefit plan as and when the curtailment or settlement occurs.
Post retirement medical benefits are provided by the Company for
certain category of employees. Liability is determined through
independent year end actuarial valuation and is recognized in the
Statement of Profit and Loss. Provision is made for retirement leave
encashment benefit payable to employees on the basis of independent
actuarial valuation, at the end of each year and charge is recognized
in the Statement of Profit and Loss.
Sales represent the invoiced value of goods supplied less Sales Tax /
Value Added Tax.
1.9 INCOME FROM INVESTMENTS
Income from investments is included together with the related tax
credit in the Statement of Profit and Loss.
1.10 REPLANTING AND OTHER SUBSIDIES
Replanting and other subsidies of revenue nature are recognised as
income in the Statement of Profit and Loss.
1.11 FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currencies are recorded in rupees by applying
the exchange rate prevailing on the date of transaction. Transactions
remaining unsettled are translated at the rate of exchange ruling at
the end of the year. Exchange gain or loss arising on
settlement/translation is recognised in the Statement of Profit and
Premium or discount on forward contracts are amortised as expense or
income over the life of the contract. Foreign exchange forward
contracts are revalued at the balance sheet date and the exchange
difference is recognised as gain/loss in the Statement of Profit and
Loss. Profit or Loss on cancellations/renewals of forward contracts is
recognised in the Statement of Profit and Loss.
1.12 TAXES ON INCOME
Current tax represents the amount computed as per prevailing taxation
laws under the Income Tax Act, 1961. Deferred Tax is recognized,
subject to the consideration of prudence, on timing differences, being
the difference between taxable incomes and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred Tax assets have been recognized where
there is reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
1.13 BORROWING COSTS
Borrowing cost attributable to acquisition and/or construction of
qualifying assets are capitalised as a part of the cost of such assets
up to the date when such assets are ready for intended use. Other
borrowing costs are charged to Statement of Profit and Loss.
Lease Payments under the Operating Lease are recognised as an expense
in the Statement of Profit and Loss, on a systematic basis.
1.15 PROVISIONS AND CONTINGENT LIABILITIES
Provisions are recognised when there is a present obligation as a
result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and there is a reliable estimate of the amount of the obligation.
Provisions are measured at the best estimate of the expenditure
required to settle the present obligation at the Balance sheet date and
are not discounted to its present value.
Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non occurrence of one or more
uncertain future events not wholly within the control of the company or
a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made, is termed as a
1.16 USE OF ESTIMATES
The preparation of financial statements is in conformity with Indian
GAAP requires the management to make judgements, estimates and
assumptions that effect the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent 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 the
outcomes requiring a material adjustment to the carrying amounts of
assets or liabilities in the future periods. Any revision to accounting
estimates is recognised prospectively in the current and future
1.17 EARNING 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
and for all periods presented is adjusted for events, such as bonus
shares, other than the conversion of potential equity shares, that have
changed the number of equity shares outstanding, without a
corresponding change in resources. For the purpose of calculating
diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.