| a. Basis of Preparation of Financial Statements:
The financial statements are prepared under the historical cost
convention, in accordance with Indian Generally Accepted Accounting
Principles ("GAAP") comprising the mandatory accounting standards
issued by the Institute of Chartered Accountants of India and the
provisions of the Companies Act, 1956, on the accrual basis, as adopted
consistently by the company.
The preparation of the financial statements in conformity with GAAP
requires that the management of the company ("Management") make
estimates and assumptions that affect the reported amounts of revenue
and expenses for the year, reported balances of assets and liabilities,
and disclosure relating to contingent liabilities as of the date of the
financial statement.
b. Revenue Recognition:
All Income and expenses are recognized on Accrual basis.
c. Fixed Assets:
All Fixed Assets are stated at its cost of acquisition / construction
including any attributable expenses incurred for bringing the asset
into working condition for its intended use, less accumulated
depreciation.
Depreciation on assets have been provided on straight line method at
the rates, and in the manner prescribed in Schedule III to the
Companies' Act 2013.
Depreciation on assets and their respective additions / deduction have
been provided on pro- rata basis according to the period for which each
such assets have been put to use.
d. Earning Per Share:
In considering the Earning Per Share, the company considers the Net
Profit after tax and includes the post - tax effect of any extra -
ordinary items. The number of shares used in computing both basic and
diluted earning per share is the weighted average number of share
outstanding during the period. There are no potentially dilutive equity
shares.
e. Income Tax:
Income taxes are computed using the tax effect accounting method, where
taxes are accrued in the same period in which related revenue and
expenses arise. A provision is made for income tax annually based on
the tax liability computed after considering tax allowances and
exemptions.
The differences that result between the profit offered for income taxes
and the profit as per the financial statements are identified and
thereafter a deferred tax assets or deferred tax liability is recorded
for timing differences, namely the differences that originate in one
accounting period and reverse in another, based on the tax effect of
the aggregate amount being considered. The tax effect is calculated on
the accumulated timing differences at the end of an accounting period
based on prevailing enacted or substantially enacted regulations.
Deferred tax assets are recognized only if there is reasonable
certainty that they will be realised and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
f. Inventories:
The closing stock has been valued at Cost or Market Value which ever is
less as per Accounting Standard AS-2.
g. Employee Benefits:
As per the explanation received from the management there are no
employees in the company, Accounting Standard 15 (Revised) - Retirement
Benefits as issued by the institute of Chartered Accountants of India
is not applicable.
h. Investments:
Investments are shown at cost. In case of shares were market value is
not ascertainable face value has been considered as market value.
i. Segment Reporting:
The company is engaged in the business of Trading of Castror Seeds. The
products are similar in nature and therefore are not subject to
different risks and returns. Moreover, the company caters only to the
needs of Indian Markets. Hence there are no reportable business
segments/geographical segments.
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