a) Basis of Accounting
The accounts are prepared under the Historical Cost Convention. The
Company adopts the accrual basis in the preparation of accounts in
accordance with the Accounting standards referred to in Section 211(3C)
of the Companies Act 1956.
b) Basis of preparation
The 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 (Accounting Standard) Rules, 2006, (as amended) and
the relevant provisions of the Companies act, 1956,. The financial
statements have been prepared on accrual basis and under the historical
cost convention. The accounting policies adopted in preparation of
financial statements are consistent with those of previous year.
c) Revenue recognition
Sale of goods is recognized on transfer of property to the buyers for
consideration. Interest on deployment of surplus funds is recognized
using the time proportion method, based on interest rates implicit in
d) Fixed Assets
i) Fixed Assets are stated at cost of acquisition inclusive of duties
(net of Cenvat), taxes, incidental expenses, erection/ commissioning
expenses etc. upto the time asset is ready for its intended use.
ii) Capital Work in progress is stated at the expenditure incurred upto
the date of the Balance Sheet including capital advances.
iii) The carrying amounts of assets are reviewed at each Balance Sheet
date to determine if there is any indication of Impairment based on
external/ internal factors. An impairment loss is recognized wherever
the carrying amount of the asset exceeds its recoverable amount which
represents the greater of the net selling price of assets and their ''
value in use''. The estimated future cash flows are discounted to
their present value of the weighted average cost of capital.
Depreciation on the Assets has been provided on straight-line methods
at the rates and in the manner specified in schedule-XIV of the
Companies Act, 1956. Depreciation on impaired assets is calculated on
its residual value, if any, on a systematic basis over its remaining
useful life. Planting material is written off over a period of 5 years
Long term investments, if any, are stated and carried at cost. However,
unutilized issue proceeds are invested in fixed deposits with the
g) Non-rurrent assets
Expenditure incurred for public issue, pre-operative expenses, market
development expenditure and expenditure on research and development
will be amortized in over a period of 5 years in equal installments
from the year of start of commercial production.
h) Foreign Currency Transactions
Foreign Exchange Transactions are recorded at the exchange rates
prevailing on the date of transaction and any exchange differences
arising on foreign transactions are recognized as income or expense in
the year in which they arise.
i) Borrowing costs:
Borrowing costs are charged to profit and loss account except in cases
where the borrowings are directly attributable to the acquisition,
construction or production of a qualifying asset.
j) Retirement Benefits:
As regards to provident fund benefits, the company makes the stipulated
contribution in respect of certain class of employees to regional
provident fund authority under which the company''s liability is
limited to the extent of contribution. Gratuity and leave encashment
has been provided based on the actuarial valuation.
Current Income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act 1961.
l) Earnings per share:
Earning per share is calculated by dividing the net profit or loss for
the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
m) Expenditure during construction period:
The expenditure incidental to the expansion/ new projects is allocated
to Fixed Assets in the year of commencement of commercial production.
Interest on Loans raised for the expansion/ diversification project is
set off against interest earned on unutilized Public issue funds.
n) Raw materials, stores and spare parts, packing materials, finished
goods and work in progress are valued at lower of cost and Net
realizable value (as certified by the management).
o) Deferred Tax Liability:-
The income from Agro based operations of the company comprises
Horticulture and Nursery operations, which is exempted from Income Tax.
Hence, Accounting Standard on deferred Tax Liability is not applicable
in so far as it relates to the income from its agro based operations.
However, for its Bio tech and Pharmaceutical operations, differed
liability/ asset can be recognized once the diversification projects