Hindustan Agrigenetics Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2014

METHOD OF ACCOUNTING

1.1 The financial statements have been prepared and presented in accordance with the generally accepted accounting principles (GAAP) in india under historical cost convention on accural basis and comply in all material aspects with the accounting standards and the relevant provisions prescribed in companies act 1956, besides the guidelines of the Institute of chartered accountants of india, except otherwise states.

1.2 The Company generally, recognises income and expenditure on an accrual basis except those with

significant uncertainties.

USES OF ESTIMATES

1.3 The Preparation of financial statements in conformity with generally accepted accounting principles requires management to estimates and assumption to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The actual outcome may be different from the estimates. Differences between actual results and estimates are recognised in the period in which the results are known or materialise.

1.4 current and non current classification

All assets and liabilities are classified into current and non- current.

1.5 Assets

An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected to be realised in, or is intended for sale or consumption in, the company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within 12 months after the reporting date; or

(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

1.6 Liabilities

An liabilities is classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within 12 months after the reporting date; or

(d) The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

1.7 Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

FIXED ASSETS

1.8 Fixed assets (Tangible) are stated at original cost including relevant taxes (other than those subsequently recoverable from tax authorities), duties freight and other incidental expenses related to acquisition/ installation of the respective assets.

DEPRECIATION

1.9 Depreciation on Fixed Assets is provided on Written down Value method basis as per rates prescribed under Schedule XIV to the companies Act, 1956 as prevailing except in case of certain assets such as depreciation has been provided at higher rates based on useful life as determined by the management.

1.10 In respect of fixed assets added/disposed off during the year depreciation is provided on pro-rata basis with referance to the month of addition/deduction, however, in case of new projects the depreciation from the date of commencing of such project is changed to the statement of profit and loss.

INVENTORIES

The inventories are valued as follows : -

Finished goods & by products :- are valued at lower of cost or net realisable value

Semi Finished goods. :- Cost of raw materials and consumables based on landed cost of each respective items and other variables overheads are allocated to the respective product, and fixed production overheads such as depreciation, staff related to production, Q & A Supervisors are charged on weighted average basis on variables costs.

Raw materials & :- are valued at cost on First in First Out (FIFO) Basis

Packing materials :- are valued at cost.

Obsolete, defectives, slow moving and/or unserviceable inventories, if any are duly accounted for.

REVENUE RECOGNITIONS TURNOVER

1.11 Revenue from sale of goods in the course of ordinary activities is recognised when property in goods or all significant risks and rewards of their ownership are transferred to the customers and stated net of sales tax/ VAT/ trade discounts and rebates

1.12 Income from services is recognised as they are rendered ( based on agreement/arrangement with the concerned customers).

TAXES AND DUTIES

1.13 Rent, Short & Excess Recoveries & other Income are accounted for on accrual basis.

BORROWING COSTS

Borrowing Costs that are attributable to acquisition, construction or production of qualifying assets are capitalised as pert of cost of such assets. A qualifying assets is an assets that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are charged to the profit and loss account.

TAXES ON INCOME

1.14 Current tax is determined as the amount of tax payable in respect of taxable income in specified under Income Tax 1961 as amended.

1.15 Deferred tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing dif-ferences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods and using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

1.16 Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

EVENTS OCCURRING AFTER BALANCE SHEET

Events Occurring after balance sheet date have been considered in preparation of financial statements.

FOREIGN CURRENCY TRANSLATION

1.17 Transaction in foreign currency are recorded at exchange rate prevailing at the time of the transactions and exchange differences arising from foreign currency transactions are dealt with in profit and loss account. Transactions in foreign currencies remaining unsettled at the end of the year are translated at contracted rate where they are covered by foreign exchange forward contracts and at the rate prevailing at the end of the year in other cases and the corresponding effect is given in the respective account. Any difference subsequently as compared to actual payments or realisation is recognised as exchange variations in the year of settlement / realisation and dealt in profit and loss account.

1.18 In the case of forward exchange contracts entered to hedge the foreign exchange fluctuations , the difference between the forward rate and the exchange rate at the date of the transaction is recognized as income or expenses over the life of the contract, except in respect of liabilities incurred for acquiring fixed assets, in which case such difference is adjusted in the carrying amount of the respective fixed assets. Any profit or loss arising on cancellation or renewal of a forward exchange contract is recognised as income or expense for the period, except in the case of forward exchange contract relating to liabilities incurred for acquiring fixed assets, in which case such profit or loss is adjusted in the carrying amount of the respective fixed assets.

1.19 The Company follows the Accounting Standards which are made mandatory. It is in the process of formulating the requisite mechanism/ systems to meet prescribed requirements under Accounting Standards 30, 31 & 32. It shall be following the accounting policy of recognition, presentation & disclosure of forward exchange transactions including Derivative/ Hedging/ Currency Swaps & Interest Swaps etc as prescribed under these Accounting Standards with effect from the date these are made mandatory by ICAI. s 11 Impairment of Assets

In accordance with Accounting Standard 28 (AS28) on impairment of assets, where there is an indication on impairment of the company assets, the carrying amount of the company assets are reviewed at each balancesheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of cash generating unit to which the assets belongs) is estimated at the higher of its net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. An impairment loss is recognised whenever the carrying amount of an assets or a cash generating unit exceeds its recoverable amount. Impairment loss is recognised in the statement of profit and loss

Provisions and Contingent Liabilities

The company creates a provision when there exist a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or discloure is made. Contigent assets are not recognized in the financial statements.

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Mar 31, 2013

(1) METHOD OF ACCOUNTING

1.1 The financial statements have been prepared and presented in accordance with the generally accepted accounting principles (GAAP) in india under historical cost convention on accural basis and comply in all material aspects with the accounting standards and the relevant provisions prescribed in companies act 1956, besides the guidelines of the Institute of chartered accountants of india, except otherwise states.

1.2 The Company generally, recognises income and expenditure on an accrual basis except those with significant uncertainties.

(2) USES OF ESTIMATES

2.1 The Preparation of financial statements in conformity with generally accepted accounting principles requires management to estimates and assumption to be All assets and liabilities are classified into current and non- current.

2.2.1 Assets

An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected to be realised in, or is intended for sale or consumption in, the company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within 12 months after the reporting date; or

(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

An liabilities is classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within 12 months after the reporting date; or

(d) The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

(3) FIXED ASSETS

3.1 Fixed assets (Tangible) are stated at original cost including relevant taxes (other than those subsequently recoverable from tax authorities), duties freight and other incidental expenses related to acquisition/ installation of the respective assets.

(4) DEPRECIATION

4.1 Depreciation on Fixed Assets is provided on straight line method basis as per rates prescribed under Schedule XIV to the companies Act, 1956 as prevailing except in case of certain assets such as depreciation has been provided at higher rates based on useful life as determined by the management.

4.2 In respect of fixed assets added/disposed off during the year depreciation is provided on pro-rata basis with referance to the month of addition/deduction, however, in case of new projects the depreciation from the date of commencing of such project is changed to the statement of profit and loss.

(5) INVENTORIES

The inventories are valued as follows : -

Finished goods & by products :- are valued at lower of cost or net realisable value

Semi Finished goods. :- Cost of raw materials and consumables based on landed cost of each respective items and other variables overheads are allocated to the respective product, and fixed production overheads such as depreciation, staff related to production, Q & A Supervisors are charged on weighted average basis on variables costs.

Raw materials & :- are valued at cost on First in First Out (FIFO) Basis

Packing materials :- are valued at cost.

Obsolete, defectives, slow moving and/or unserviceable inventories, if any are duly accounted for.

(6) REVENUE RECOGNITIONS TURNOVER

6.1 Revenue from sale of goods in the course of ordinary activities is recognised when property in goods or all significant risks and rewards of their ownership are transferred to the customers and stated net of sales tax/ VAT/ trade discounts and rebates

6.2 Income from services is recognised as they are rendered ( based on agreement/arrangement with the concerned customers).

TAXES AND DUTIES

6.3 Rent, Short & Excess Recoveries & other Income are accounted for on accrual basis.

(7) BORROWING COSTS

Borrowing Costs that are attributable to acquisition, construction or production of qualifying assets are capitalised as pert of cost of such assets. A qualifying assets is an assets that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are charged to the profit and loss account.

(8) TAXES ON INCOME

8.1 Current tax is determined as the amount of tax payable in respect of taxable income in specified under Income Tax

8.2 Deferred tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing dif-ferences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods and using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

8.3 Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

(9) EVENTS OCCURRING AFTER BALANCE SHEET

Events Occurring after balance sheet date have been considered in preparation of financial statements.

(10) FOREIGN CURRENCY TRANSLATION

10.1 Transaction in foreign currency are recorded at exchange rate prevailing at the time of the transactions and exchange differences arising from foreign currency transactions are dealt with in profit and loss account. Transactions in foreign currencies remaining unsettled at the end of the year are translated at contracted rate where they are covered by foreign exchange forward contracts and at the rate prevailing at the end of the year in other cases and the corresponding effect is given in the respective account. Any difference subsequently as compared to actual payments or realisation is recognised as exchange variations in the year of settlement / realisation and dealt in profit and loss account.

10.2 In the case of forward exchange contracts entered to hedge the foreign exchange fluctuations , the difference between the forward rate and the exchange rate at the date of the transaction is recognized as income or expenses over the life of the contract, except in respect of liabilities incurred for acquiring fixed assets, in which case such difference is adjusted in the carrying amount of the respective fixed assets. Any profit or loss arising on cancellation or renewal of a forward exchange contract is recognised as income or expense for the period, except in the case of forward exchange contract relating to liabilities incurred for acquiring fixed assets, in which case such profit or loss is adjusted in the carrying amount of the respective fixed assets.

10.3 The Company follows the Accounting Standards which are made mandatory. It is in the process of formulating the requisite mechanism/ systems to meet prescribed requirements under Accounting Standards 30, 31 & 32. It shall be following the accounting policy of recognition, presentation & disclosure of forward exchange transactions including Derivative/ Hedging/ Currency Swaps & Interest Swaps etc as prescribed under these Accounting Standards with effect from the date these are made mandatory by ICAI.

11 Impairment of Assets

In accordance with Accounting Standard 28 (AS28) on impairment of assets, where there is an indication on impairment of the company assets, the carrying amount of the company assets are reviewed at each balancesheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of cash generating unit to which the assets belongs) is estimated at the higher of its net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. An impairment loss is recognised whenever the carrying amount of an assets or a cash generating unit exceeds its recoverable amount. Impairment loss is recognised in the statement of profit and loss

12 Provisions and Contingent Liabilities

The company creates a provision when there exist a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or discloure is made. Contigent assets are not recognized in the financial statements.

SEGMENT INFORMATION

(i) Primary Segment

As the company business actively falls within a single primary business segment viz seeds. The disclosure requirement of Accounting Standard No-17- Segment reporting issued by the Institute of Chartered Accountants of India are not applicable.

(ii) Secondary Segment

Revenue of Geographical Segment

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Mar 31, 2011

I) METHOD OF ACCOUNTING

i) The financial statement are prepared on a going concern basis with historical costs on accrual basis of accounting and in accordance with generally accepted accounting policies in India, the Accounting standards notified under the companies (Accounting Standards Rules, 2006) as adopted consistently by the company.

ii) The Company generally accounts for income and expenditure on mercantile basis except those with Significant uncertainties.

II) USES OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principle requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and reported amounts of revenue and expenses during the reported year. Difference between actual results and the estimates are recognized in the year in which the results are known/materialized. Actual results could offer with these estimates.

III) FIXED ASSETS

i) Fixed assets are stated at original cost including taxes, freight and other incidental expenses.

ii) Expenses related to acquisition/ installation have been included and are net of capital subsidies.

iii) The motor vehicles and motor cycles which were given to the employees for use. The employees had refused to hand over the said assets, as the company was not able to pay their salaries and other dues. The written down values thus have been adjusted against amounts due to employees.

iv) The company has revalued its existing agricultural land situated at Village & Grampanchayat, Dundigal in Hyderabad in consuance with the Land acquisition price determined by Andhra Pradesh Government price for acquisition and the difference in value thereof credited to revaluation reserve during the financial year 2006-07.

III) DEPRECIATION

a) Depreciation on fixed Assets is provided on written down method as per rates prescribed under schedule XIV to the Computer Act, 1956 as prevailing..

b) Depreciation on structures on leased lands and fixtures installed therein are charged over the balance lease period.

IV) INVENTORIES

The inventories are valued as follows :

Seed:

Raw Materials : At lower of landed cost including apportioned procurement expenses like freight, basis packing and market cess, and realisable value.

Semi Finished at lower of landed cost and apportioned manufacturing expenses and realisable value.

Finished Goods: at lower of landed cost apportioned manufacturing expenses and packing costs, or realisable value .

V) TURNOVER

The Company has not conducted any turnover during the year.

VI) MISCELLANEOUS EXPENDITURE :

(i) Preliminary and share issue expenses are amortised over a period of 5 Years on a prorata basis beginning from the year of incurrence .

VII) TAXES ON INCOME

(i) Current tax is determined as the amount of tax payable in respect of taxable income in specified under Income Tax 1961 as amended.

(ii) Deferred tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods and using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

(iii) Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised in future.

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Mar 31, 2010

1) METHOD OF ACCOUNTING

i) The financial statement are prepared on a going concern basis with historical costs on accrual basis of accounting and in accordance with generally accepted accounting policies in India, the Accounting standards notified under the companies (Accounting Standards Rules, 2006) as adopted consistently by the company.

ii) The Company generally accounts for income and expenditure on mercantile basis except those with Significant uncertainties.

II) USES OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principle requires estimates and assumptions to be made that affect the reported amount of assets and liabilitis on the date of financial statements and reported amounts of revenue and expenses during the reported year. Difference between actual results and the estimates are recognized in the year in which the results are known/materialized. Actual results could offer with these estimates.

III) FIXED ASSETS

i) Fixed assets are stated at original cost including taxes, freight and other incidental expenses.

ii) Expenses related to acquisition/ installation have been included and are net of capital subsidies.

iii) The motor vehicles and motor cycles which were given to the employees for use. The employees had refused to hand over the said assets, as the company was not able to pay their salaries and other dues. The written down values thus have been adjusted against amounts due to employees.

iv) The company has revalued its existing agricultural land situated at Village & Grampanchayat, Dundigal in Hyderabad in consuance with Ihe Land acquisition price determined by Andhra Pradesh Government price for acquisition and the difference in value thereof credited to revaluation reserve during the financial year 2006-07.

III) DEPRECIATION

a) Depreciation on fixed Assets is provided on straight-line bases as per rates prescribed under schedule XIV to the Computer Act, 1956 as prevailing. However, no depreciation has been provided on fixed Assets as the company has not conducted any business during the year.

b) Depreciation on structures on leased lands and fixtures installed therein are charged over the balance lease period. No depreciation has been provided since the unit is non-operational during the year.

IV) INVENTORIES

The inventories are valued as follows :

Seed:

Raw Materials : At lower of landed cost including apportioned procurement expenses like freight, basis packing and market cess, and realisable value.

Semi Finished: at lower of landed cost and apportioned manufacturing expenses and realisable value.

Finished Goods: at lower of landed cost apportioned manufacturing expenses and packing costs, or realisable value.

Stores & Packing items

At Purchase Cost

V) TURNOVER

The Company has not conducted any turnover during the year.

VI) MISCELLANEOUS EXPENDITURE (to the extent not written off):

(i) "Preliminary and share issue expenses are amortised over a period 10 Years on a prorata basis beginning from the year of incurrence However, there is no amortization during the year, as no business conducted during the year.

VII) TAXES ON INCOME

(i) Current tax is determined as the amount of tax payable in respect of taxable income in specified under Income Tax 1961 as amended.

(ii) Deferred tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods and using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

(iii) Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised in future.

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Mar 31, 2009

I) METHOD OF ACCOUNTING

i) The financial statement are prepared on a going concern basis with historical costs and comply with the standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

ii) The Company generally accounts for income and expenditure on mercantile basis except those with Significant uncertainties.

II) FIXED ASSETS

i) Fixed assets are stated at original cost including taxes, freight and other incidental expenses.

ii) Expenses related to acquisition/ installation have been included and are net of capital subsidies.

iii) The motor vehicles and motor cycles which were given to the employees for use. The employees had refused to hand over the said assets, as the company was not able to pay their salaries and other dues. The written down values thus have been adjusted against amounts due to employees.

iv) The company has revalued its existing agricultural land situated at Village & Grampanchayat, Dundigal in Hyderabad in consonance with the Land acquisition price determined by Andhra Pradesh Government price for acquisition and the difference in value thereof credited to revaluation reserve during the financial year 2006-07.

III) DEPRECIATION

a) Depreciation on fixed Assets is provided on straight-line bases as per rates prescribed under schedule XIV to the Computer Act, 1956 as prevailing. However, no depreciation has been provided on fixed Assets as the company has not conducted any business during the year.

b) Depreciation on structures on leased lands and fixtures installed therein are charged over the balance lease period. No depreciation has been provided since the unit is non-operational during the year.

IV) INVENTORIES

The inventories are valued as follows :

Seed:

Raw Materials : At lower of landed cost including apportioned procurement expenses like freight, basis packing and market cess, and realisable value.

Semi Finished: at lower of landed cost and apportioned manufacturing expenses and realisable value.

Finished Goods: at lower of landed cost apportioned manufacturing expenses and packing costs, or realisable value .

Stores & Packing items

At Purchase Cost

V) TURNOVER

The Company has not conducted any turnover during the year.

VI) MISCELLANEOUS EXPENDITURE (to the extent not written off):

(i) Preliminary and share issue expenses are amortised over a period 10 Years on a prorata basis beginning from the year of incurrence However, there is no amortization during the year, as no business conducted during the year.

VII) TAXES ON INCOME

(i) Current tax is determined as the amount of tax payable in respect of taxable income in specified under Income Tax Act 1961 as amended.

(ii) Deferred tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods and using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

(iii) Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised in future.