Swadha Nature Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1. CORPORATE INFORMATION:

• Swadha Nature Limited (the Company) is a listed entity incorporated on 12^th of February 1992.

• The Company’s registered office is at 601B, Ashiana Plaza, Budh Marg, Patna-800001.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES:

2.1 Statement of Compliance:

These financial statements have been prepared in accordance with Ind-AS as prescribed under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 and other provisions of the Companies Act, 2013 as amended from time to time.

2.2 Basis of preparation

These financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

2.3 Accounting Estimates:

The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make judgments, estimates and assumptions, that affect the reported balance of assets and liabilities, disclosure relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses for the years presented. Actual results may differ from these estimates.

2.4 Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The Company assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. The Company has concluded that it is acting as a principal in all of its revenue arrangements. The specific recognition criteria described below must also be met before revenue is recognized.

Value added tax(VAT)/Goods and Service Tax (GST) is not received by the Company on its own account. Rather, it is tax collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.

Sale of goods

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are stated exclusive of VAT/ Goods and Service Tax (GST).

Interest income

Interest Income is accrued on a time proportion basis using the effective interest rate.

2.5 Property, Plant & Equipment:

Property, Plant & Equipment has been recorded at actual cost inclusive of duties, taxes and other incidental expenses related to acquisition, improvement and installation. The Company depreciates furniture fixtures over their estimated useful lives using the SLM method. The estimated useful lives of assets are as under:

Name of Asset	Useful life
Furniture & Fittings	10 Years

2.6 Impairment of Assets:

Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an asset’s net selling price and value in use.

2.7 Investments:

Investments are in equity shares of unlisted company being Non-Current in nature, are stated at cost.

2.8 Foreign Currency Transactions:

Foreign currency transactions, if any, are recorded at the exchange rates prevailing on the date of the transaction. Gains and losses arising out of subsequent fluctuations are accounted for on actual payment or realization. Monetary items denominated in foreign currency as at the balance sheet date are converted at the exchange rates prevailing on that day. Exchange differences are recognized in the statement of profit and loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

2.9 Borrowing Cost:

Borrowing cost, if any, directly attributable to qualifying assets, which take substantial period to get ready for its intended use, are capitalized to the extent they relate to the period until such assets are ready to be put to use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

2.10 Inventories:

Stock and operating supplies are valued at lower of cost and net realizable Value. Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition, Cost is determined on a first in first out basis. Net realizable value is the estimated selling price in the ordinary course of business less estimated cost of completion and estimated costs necessary to make sale.

2.11 Employees’ Benefits:

Termination benefits are recognized as an expense as and when incurred.

2.12 Taxes on Income:

Taxes on Income are accounted in the same period to which the revenue and expenses relate.

Provision for current income tax is made on the basis of estimated taxable income, in accordance with the provisions of the Income Tax Act, 1961 and rules framed there under.

Deferred tax is the tax effect of timing differences. The timing differences are differences between the taxable income and accounting income for a period that originate in one period and are capable of reversal in one or more subsequent periods.

2.13 Earning Per Share (EPS):

Basic earnings per share are computed by dividing the profit/ (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/(loss) after tax by the weighted average number of equity shares considered for deriving basic earnings per share.

2.14 Contingencies and Provisions:

Provisions are recognized when the Company has a present obligation (legal or constructive) 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 a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are recognized only when there is a possible obligation arising from past events, due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of obligation cannot be made. Contingent assets are not recognized in the financial statements.

2.15 Statement of Cash Flow:

Cash flows are reported using the indirect method, whereby profit/(loss) before exceptional items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on available information.

2.16 Financial Instruments:

Financial Assets and Financial Liabilities are recognized when the Company becomes party to the contractual provisions of the financial instrument. Financial Assets are derecognized when the rights to receive benefits have expired or been transferred, and the Company has transferred substantially all risks and rewards of ownership of such financial asset. Financial liabilities are derecognized when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expired. Purchase or sale of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place are recognized on trade date i.e., the date when the Company commits to purchase or sale the asset.

NOTES TO ACCOUNTS:

3.1 Some of the Balances of sundry creditors, sundry debtors, loans &advances and other liabilities are subject to confirmation and reconciliation.

3.2 In the opinion of the Board of Directors, Current Assets, Loans & Advances are approximately of the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

3.3 The Company operates in one segment i.e., trading of agricultural produce and chemical and within one geographical segment i.e., India.

3.4 The Company manages its capital to ensure that it will be able to continue as a going concern. The structure is managed to provide ongoing returns to shareholders and service debt obligations, whilst maintaining maximum operational flexibility.

3.5 The carrying amounts of trade payables, other financial liabilities, cash and cash equivalents, other bank balances, trade receivables and other financial assets are considered to be the same as their fair values due to their short-term nature.

3.6 The Company opines that no provision for expected credit loss is required.

3.7 There is no significant market risk or liquidity risk to which the Company is exposed.

3.8 The disclosure of transactions with the related parties is given below:

(i) Parties where control exists: NIL

(ii) Subsidiary Companies: NIL

(iii) Fellow Subsidiary Companies: NIL

(iv) Key Management Personnel: Manoj Kumar Saraf and Dipakkumar Shah - Managing Director & CFO, Mr. Dhanesh Shah - Company Secretary

Terms and conditions of transactions with related parties: NIL

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Mar 31, 2024

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS AND SIGNIFICANT
ACCOUNTING POLICIES:

2.1 Statement of Compliance:

These financial statements have been prepared in accordance with Ind-AS as prescribed under
section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards)
Rules, 2015 and other provisions of the Companies Act, 2013 as amended from time to time.

2.2 Basis of preparation

These financial statements of the Company have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards)
Rules, 2015.

2.3 Accounting Estimates:

The preparation of these financial statements in conformity with the recognition and
measurement principles of Ind AS requires management to make judgments, estimates and
assumptions, that affect the reported balance of assets and liabilities, disclosure relating to
contingent liabilities as at the date of the financial statements and the reported amounts of
income and expenses for the years presented. Actual results may differ from these estimates.

2.4 Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured, regardless of when the payment is
being made. Revenue is measured at the fair value of the consideration received or receivable,
taking into account contractually defined terms of payment and excluding taxes or duty. The
Company assesses its revenue arrangements against specific criteria to determine if it is acting
as principal or agent. The Company has concluded that it is acting as a principal in all of its
revenue arrangements. The specific recognition criteria described below must also be met
before revenue is recognized.

Value added tax(VAT)/Goods and Service Tax (GST) is not received by the Company on its
own account. Rather, it is tax collected on value added to the commodity by the seller on
behalf of the government. Accordingly, it is excluded from revenue.

Sale of goods

Revenue from the sale of goods is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Sales are stated exclusive of VAT/ Goods
and Service Tax (GST).

Interest income

Interest Income is accrued on a time proportion basis using the effective interest rate.

2.5 Property, Plant & Equipment:

Property, Plant & Equipment has been recorded at actual cost inclusive of duties, taxes and
other incidental expenses related to acquisition, improvement and installation. The Company
depreciates furniture fixtures over their estimated useful lives using the SLM method. The
estimated useful lives of assets are as under:

2.6 Impairment of Assets:

Assets are reviewed for impairment losses whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognized
for the amount by which the carrying amount of the assets exceeds its recoverable amount,
which is the higher of an asset’s net selling price and value in use.

2.7 Investments:

Investments are in equity shares of unlisted company being Non-Current in nature, are stated
at cost.

2.8 Foreign Currency Transactions:

Foreign currency transactions, if any, are recorded at the exchange rates prevailing on the date
of the transaction. Gains and losses arising out of subsequent fluctuations are accounted for on
actual payment or realization. Monetary items denominated in foreign currency as at the
balance sheet date are converted at the exchange rates prevailing on that day. Exchange
differences are recognized in the statement of profit and loss. Non-monetary items that are
measured in terms of historical cost in a foreign currency are translated using the exchange
rates at the dates of the initial transactions.

2.9 Borrowing Cost:

Borrowing cost, if any, directly attributable to qualifying assets, which take substantial period
to get ready for its intended use, are capitalized to the extent they relate to the period until
such assets are ready to be put to use. Other borrowing costs are recognized as an expense in
the period in which they are incurred.

2.10 Inventories:

Stock and operating supplies are valued at lower of cost and net realizable Value. Cost
includes cost of purchase and other costs incurred in bringing the inventories to their present
location and condition, Cost is determined on a first in first out basis. Net realizable value is
the estimated selling price in the ordinary course of business less estimated cost of completion
and estimated costs necessary to make sale.

2.11 Employees’ Benefits:

Termination benefits are recognized as an expense as and when incurred.

2.12 Taxes on Income:

Taxes on Income are accounted in the same period to which the revenue and expenses relate.

Provision for current income tax is made on the basis of estimated taxable income, in
accordance with the provisions of the Income Tax Act, 1961 and rules framed there under.

Deferred tax is the tax effect of timing differences. The timing differences are differences
between the taxable income and accounting income for a period that originate in one period
and are capable of reversal in one or more subsequent periods.

2.13 Earning Per Share (EPS):

Basic earnings per share are computed by dividing the profit/ (loss) after tax by the weighted
average number of equity shares outstanding during the year. Diluted earnings per share is
computed by dividing the profit/(loss) after tax by the weighted average number of equity
shares considered for deriving basic earnings per share.

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Mar 31, 2012

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention, on the accrual basis of accounting, in accordance with generally accepted accounting principles and the provision of Companies Act, 1956.

2. FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized.

3. DEPRECIATION

Depreciation is provided as per WDV method on the rates prescribed by schedule XIV of the Companies Act, 1956, on a pro-rata basis. The fixed assets include other incidental expenses incurred up to the date of commissioning of such Assets.

4. INVESTMENT

Investments are valued at cost of acquisition. These are meant for long-term holding.

5. INVENTORIES

Inventories consist of shares of various companies held for the purpose of trading. These have been valued at cost or market price whichever is less.

6. CONTINGENT LIABILITY

Contingent liabilities are not provided for in the accounts and are shown separately in the notes on account if any.

7. GRATUITY

No provision of gratuity has been made. It will be accounted for in the books as and when it is actually paid.

8. DEFERRED TAX

Income Tax expenses comprise current tax and deferred tax charges or release. The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty or realization or such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty or realization in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.

9. REVENUE RECOGNITION

a. Income is recognized on accrual basis except dividend received on an investment which is accounted for as and when received.

b. Underwriting commission, if received, is accounted for as and when received.

c. Other miscellaneous receipts, if any, are recognized as and when the same is received.

10. TAXATION

Provision of taxation is based on current applicable rates of taxes after claiming allowable deductions.

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Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention, on the accrual basis of accounting, in accordance with generally accepted accounting principles and the provision of Companies Act, 1956.

2. FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalised.

3. DEPRECIATION

Depreciation is provided as per w.d.v. method on the rates prescribed by schedule XIV of the Companies Act, 1956, on a pro-rata basis. The fixed assets includes other incidental expenses incurred up to the date of commissioning of such Assets.

4. INVESTMENT

Investments are valued at cost of acquisition. These are meant for long-term holding.

5. INVENTORIES

Inventories consist of shares of various companies held for the purpose of trading. These have been valued at cost or market price whichever is less.

6. CONTINGENT LIABILITY

Contingent liabilities are not provided for in the accounts and are shown separately in the notes on account if any.

7. GRATUITY

No provision of gratuity has been made. It will be accounted for in the books as and when it is actually paid.

8. Deferred Tax

Income Tax expenses comprise current tax and deferred tax charges or release. The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty or realization or such assets- Other deferred tax assets are recognized only to the extent there is reasonable certainty or realization in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.

9. PRELIMINARY EXPENSES

The management has decided to write-off the preliminary expenses on straight-line basis over a period of ten years.

10. REVENUE RECOGNITION

1. Income is recognized on accrual basis except dividend received on investments which is accounted for as and when received.

2. Underwriting commission, if received, is accounted for as and when received.

3. Other miscellaneous receipts, if any, is recognised as and when the same is received.

11. TAXATION

Provision of taxation is based on current applicable rates of taxes after claiming allowable deductions.

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Mar 31, 2010

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention, on the accrual basis of accounting, in accordance with generally accepted accounting principles and the provision of Companies Act, 1956.

1.2. FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation, ALL costs relating to the acquisition and installation of fixed assets are capitalised.

1.3. DEPRECIATION

Depreciation is provided as per w.d.v, method on the rates prescribed by schedule XIV of the Companies Act, 1956, on a prorate basis. The fixed assets include other incidental expenses incurred up to the date of commissioning of such Assets.

1.4. INVESTMENT

Investments are valued at cost of acquisition. These are meant for long-term holding.

1.5. INVENTORIES

Inventories consist of shares of various companies held for the purpose of trading. These have been valued at cost or market price whichever is Less.

1.6. CONTINGENT LIABILITY

Contingent liabilities are not provided for In the accounts and are shown separately in the notes on account if any.

1.7. GRATUITY

No provision of gratuity has been made. It will be accounted for in the books as and when it is actually paid,

1.8. Deferred Tax

Income Tax expenses comprise current tax and deferred tax charges or release. The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty or realization or such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty or realisation in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.

1.9.REVENUE RECOGNITION

1.9.1. Income is recognized on accrual basis except dividend received on an investment which is accounted for as and when received.

1.9.2. Underwriting commission, if received, is accounted for as and when received.

1.9.3. Other miscellaneous receipts, if any. is recognised as arid when the same is received.

1.10. TAXATION

Provision of taxation is based on current applicable rates of taxes after claiming allowable deductions.

1.10. TAXATION

Provision of taxation is based on current applicable rates of taxes after claiming allowable deductions,

(A) CONTINGENT LIABILITY NOT PROVIDED FOR

Claims against the Company not acknowledged as debt. Rs. Nil. (Previous year : Nil.) Liability for uncalled amount on 6800 partly paid up equity shares of Punsumi Foils & Components Ltd held as investment amounting to Rs.34,000.

The liability for the dividend received on shares already sold by the Company but not transferred in the name of buyers.