(i) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards specified under
Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013 (the 2013 Act) / Companies Act, 1956 (the 1956
Act), as applicable. The financial statements have been prepared on
accrual basis under the historical cost convention. The accounting
policies adopted in the preparation of the financial statements are
consistent with those followed in the previous year.
The preparation of financial statements requires the management to make
estimates and assumptions in the reported amounts of assets and
liabilities (including contingent liabilities) as at the date of the
financial statements and the reported income and expenses during the
reporting period. Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Actual results could differ from these estimates.
The raw material & components, stores, packing materials and
work-in-progress are valued at cost and finished goods are valued at
lower of cost or net realizable value on First in First out basis.
Excise and Custom Duties payable in respect of finished goods/imported
material held in bond are provided for and consequently include cost of
conversion and other cost incurred in bringing the inventories to their
present location and conditions. Obsolete unserviceable and slow moving
inventories are duly recognized and provided.
(iii) CASH FLOW STATEMENT
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for effects of transactions of a non-cash
nature, any deferrals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or
financing cash flows. The cash flows from operating, investing and
financing activities of the company are segregated.
(iv) EVENTS OCCURRING AFTER THE DATE OF BALANCE SHEET
Events occurring after the date of the Balance Sheet, wherever
material, are considered up to the date of approval of accounts by the
Board of Directors.
(v) FIXED ASSETS, DEPRECIATION AND IMPAIRMENT LOSS
Fixed Assets are stated at cost net of modvat/cenvat. The cost includes
all pre-operative expenses and the financing cost of borrowed fund
relating to the construction period in the case of new projects.
Depreciation has been provided on Useful life basis as prescribed in
Schedule II of the Companies Act 2013.
The carrying amounts of the fixed assets are reviewed at each Balance
Sheet date to assess whether they are recorded in excess of their
recoverable amounts. In case the recoverable amount of the Fixed Assets
is lower than its carrying amount a provision is made for the
(vi) RECOGNITION OF INCOME AND EXPENDITURE:
a) All income and expenditure are accounted on accrual basis.
b) INCOME FROM SALES:
Revenue is recognized when significant risks and rewards of ownership
of the goods sold are transferred to the customer and the commodity has
been delivered to the shipping agent/Customer.
Sales are net of Sales tax, Excise duty, Goods return & trade discount.
c) INCOME FROM SERVICES:
Revenue in respect of contracts for services is recognised on when the
service are rendered and related costs are incurred.
(vii) FOREIGN CURRENCY TRANSACTIONS
Transactions in Foreign Currencies are recorded at the exchange rate
prevailing at the date of transaction. Foreign currency denominated
Current Assets and Current Liabilities at year end exchange rates. The
resulting gains or losses are recognised in the Statement of Profit and
Loss. The premium or gain/losses arising from forward cover
transactions are recognised in the Statement of Profit & Loss over the
life of the forward contract.
Long term investment are stated at cost, provision is made to recognize
a decline, other than temporary, in the value of long term investments.
(ix) RETIREMENT BENEFITS
a) Contribution to Provident Fund is made to Regional Provident Fund
Commissioner. Contributions toward Gratuity are made to the schemes of
life Insurance Corporation of India based on premium actuarially
assessed and intimated in terms of the policies taken with them. These
contributions are charged to Profit & Loss Account.
b) Provision for incremental liability in respect of encashable
privilege leave is made on the basis of independent actuarial valuation
at the year end.
(x) 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.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
(xi) TAXES ON INCOME
Income tax expenses comprises of Current Tax and Deferred Tax charge or
credit. Provision for Current Tax is made on the assessable income at
the tax rate applicable to the relevant Assessment Year. The Deferred
Tax Asset and Deferred Tax Liability is calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred Tax Assets arising mainly on account of
brought forward losses and unabsorbed depreciation under tax laws, are
recognised, only if there is virtual certainty of its realization,
supported by convincing evidence. Deferred Tax Assets on account of
other timing differences are recognized, only to the extent there is a
reasonable certainty of its realization. At each Balance Sheet date,
the carrying amounts of Deferred Tax Assets are reviewed to reassure
(xii) TRADE RECEIVABLES
Trade Receivables are stated after making adequate provision for
(xiii) BUSINESS SEGMENTS
The Company is engaged mainly in the business of food processing.
These, in the context of Accounting Standard 17 on Segment Reporting,
as specified in the Companies (Accounting Standards) Rules, 2006, are
considered to constitute one single primary segment. Further, there is
no reportable secondary segment i.e. Geographical Segment.