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 amended]
and the relevant provisions of the Companies Act, 1956 or / and 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 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.
2 FIXED ASSETS 131 TANGIBLE
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 are charged
off as revenue expenditure unless they bring similar significant
Capitalised software costs is amortised on a straight line basis over a
period of five years.
4 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.
7 RESEARCH AND DEVELOPMENT
Research and Development Expenditure ol revenue nature is charged to
the Statement of Profit and Loss and capital expenditure is treated as
8 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 and
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 and Loss.
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
Sales represent the invoiced value of goods supplied less Sales Tax /
Value Added Tax.
10 INCOME FROM INVESTMENTS
Income from investments is included together with the related tax
credit in the Statement of Profit and Loss.
11 REPLANTING AND OTHER SUBSIDIES
Replanting and other subsidies of revenue nature are recognised as
income in the Statement of Profit and Loss.