CORPORATE INFORMATION
Flora Corporation Limited, is a public limited company incorporated on 22/03/1988 having its registered
office at Plot No 57, AP Text Book Press Colony, Gunrock, Kharkhana, Secunderabad The company is
engaged in the business of Marine & Fisheries Products, dealing of Scrap Products and Dairy Products.
The Shares of the Company is listed on Bombay Stock Exchange Limited and Ahmedabad Stock Exchange
Limited.
BASIS OF PREPARATION
(a) ACCOUNTING CONVENTION
These standalone Ind AS financial statements of the company have been prepared in accordance with
Indian Accounting standard (Hereinafter referred to as the "Ind AS") as noticed by the Ministry of
corporate Affairs pursuant to the section 133 of the Companies Act, 2013 ("the Act") read along with the
companies (Indian Accounting standard) Rules, 2015 and the companies (Indian Accounting standard)
amendment rules, 2016 and other relevant provisions of the companies act as applicable in India.
B) Use of Estimates
The preparation of these Ind AS financial statements in conformity with Ind AS requires the
management to make estimates, judgments and assumptions. These estimates, judgments and
assumptions affect the application of accounting policies and the reported amount of assets and
liabilities, the disclosures of contingent assets and liabilities at the date of Ind AS financial statements
and reported amount of revenues and expenses during the periods. The application of the accounting
policies that require critical accounting estimates involving complex and subjective judgments and the
use of assumptions in these Ind AS financial statement have been disclosed in "Notes to Ind As Financial
Statements.".
Accounting estimates could change from period to period. Actual results could differ from those
estimates. Appropriate changes in estimates. Change in estimates and reflected in the Ind AS financial
statements".
c) Current/ Non- Current Classification
Any assets or liabilities are classified as Current if it satisfies any of the following conditions:
i) The assets/liabilities are expected to be realized/ settled in the company's normal operating cycle;
ii) The assets is intend for sales or consumptions;
iii) The assets/liabilities are held primarily for the purpose of trading;
iv) The assets/ liabilities are expected to be realized/ settled within a 12 month of period after the end if
the reporting period.
v) The assets is considered as currents when it is as cash or cash Equivalents unless it is restricted from
being exchanged or used to settle a liability for at least 12 month after the reporting periods.
vi)In the case of liabilities, the Company does not have and unconditional right to defer the settlement
of the liabilities for at least 12 month after the end of the reporting period. All other assets and liabilities
are classified as Non - current.
For the purpose of liabilities classification, the Company has ascertained, the Company has ascertained
its normal operating cycles as 12 months. This bases on the nature of services and the time between the
acquisition of assets or inventories for processing and their realization in cash Equivalents.
(d)Property, plants and equipments
(i) Measurement at recognition:
An Item of property, plants and Equipments that qualifies as an asset is measured on initial recognition
at cost, net of recoverable taxes, if any less accumulated depreciation/amortization and impairment
losses, if any.
The Company identifies and determines cost of each part of an item of property, plants and Equipment
separately. If the part has a cost which is significant to the total cost of that item of property, plant and
equipment and has a useful life that is materially different from that of remaining items.
The cost comprises of its purchase price including import duties and other non-refundable purchase
taxes or levies, directly attributable to the cost of bringing the asset to its present location and working
condition for its intended use and the initial estimate of decommissioning, restoration and similar
liabilities, if any. Any trade discount and rebates are deducted in arriving at the purchase prices of such
property, plants and Equipments.
Such cost also includes the cost of replacing a part of the plants and Equipments and the borrowing cost
of the long term construction projects, if the recognition criteria are met. When the significant parts of
property, plants and Equipment are required to be replaced at periodical intervals, the Company
recognizes such part as individual assets with specific useful lives and depreciates them accordingly.
Likewise, When a major inspection is performed, its cost is recognized in the carrying amount of the
plants and Equipments as a replacement as a replacement if the recognition criteria are satisfied.
All other repair and maintenance costs are recognized in the statement of profit and loss as incurred.
The present value of the expected cost for the decommissioning of assets after its use is included in the
cost of the respective asset if the recognition criteria for a provision are met.
All costs, including administrative, financing and general overhead expenses, as are specifically
attributable to construction of a project or to the acquisition of a property, plants and Equipments or
bringing it to its present location and working condition, is included as a part of the cost of construction
of a project or as a part of the cost of property, plants and Equipments, till the commencement of the
property, plants and Equipments are capitalized as aforementioned. borrowing cost relating to the
acquisition / construction of property, plants and Equipments are ready to be put to use. Any
subsequent expenditure related to an item of property plants and Equipments is added to its book value
only if it increases the future economic benefits from the existing property, plants and Equipments
beyond its previously assessed standard of performance. Any items such as spare parts, stand by
equipment are servicing equipment that meet the definitions of the property, plants and equipments
are capitalized at cost and depreciated over the useful life of the respective property, plants and
Equipments. Cost is in the nature of repair and maintance are recognised in the statement of profit and
loss as and when incurred.
(ii) Capital work-in-progress and capital advances
Cost of any property, plants and equipments nit ready for intended use, as on the balance sheet date, is
shown as a Capital work-in-progress. Any advance given towards acquisition of property, plants and
equipments outstanding at each balance sheet date are disclosed as "Other Non- current Asset".
(iii) Depreciation
Depreciation on each part of property, plants and equipment is provided to the extent of the
depreciable amount of the assets on the basis of "Written Down Value Method (WDV)" on the useful life
the property, plants and Equipments as estimated by the management and is changed to the statement
of profit and loss as per the requirements of schedule-II to the companies Act, 2013. The estimated
useful life of the property, plants Equipments has been assessed based on the technical advice which is
considered in the property, plants and equipments, the usage of the property,, plants and equipments,
expected physical wear and tear of the property, plants and equipments, the operating conditions,
anticipated technological changes, manufactured warranties and maintenance support of the property
and Equipment etc.
When the parts of an item of the property, plants and Equipments have different useful life, they are
accounted for as a separate item (major components) and are depreciated over their useful life of the
principal property, plants and Equipments whichever is less.
(e) Inventories
Inventories of the raw material, work-in-progress, finished goods, packing material, stores and spares,
components, consumable and trading stock are carried at lower of cost and net realizable value.
However, raw material and other items held for use in production of inventories are not written down
below cost if the finished goods in which they will be incorporated are expected to be sold at or above
cost. The comparison of cost and net realizable value is made on an item by item basis. Cost of
inventories included the cost incurred in bringing the each product to its present location and conditions
are accounted as follows:
A )Raw material: - cost included the purchase price and other direct or indirect costs incurred to bring
the inventories into their present location and conditions. Cost is determined on first in first out basis
(FIFO).
b) Finished goods and work-in-progress:- cost included cost of direct materials and the labour cost and a
proportion of manufacturing overhead based on the normal operating capacity, but excluding the
borrowing costs. Cost is determined on first out basis (FIFO).
c) Trading stock: - cost included the purchase price and other direct or indirect costs incurred in bringing
the inventories to their present location and conditions. Cost is determined on weighted average basis.
All other inventories of stores and spares, consumable, project material at site are valued at cost. The
stock of waste or scrap is valued at net realizable value. Excise duty wherever applicable is provided on
the finished goods lying within the factory and bonded warehouse at the end of the reporting period.
(f) Revenue recognitions
Revenue is recognised when it is probable that economic benefit associated with the transaction flows
to the company in ordinary course of its activities and the amount of revenue can be measured reliable,
regardless of when the payment is being made. Revenue is measured at the fair values of consideration
received or receivable taking into the account contractually defined terms of payments, net of its
returns, trade discounts and volume rebates allowed.
Revenue includes only the gross inflows of economic benefits, including the Excise duty received and
receivable by the company, on its own account. Amount collected on behalf of third parties such as
goods and service tax (GST) value added tax (VAT) and sales tax are excluded from revenue.
Sales of products
Revenue from sale of products is recognized when the company transfer all significant risks and rewards
of ownership to the buyer, while the company retains neither continuing managerial involvement nor
effective control over the products sold, which generally coincide with dispatch. Revenue from export
sales is recognized on shipment basis based on the bill of lading.
(g)Cash and cash equivalents
cash and cash equivalents in the balance sheet comprises cash at banks cash in hand and also the short
term deposits with maturity of three month or less, which are subject to an in significant risk of changes
in value. For the purpose of the statement of cash flows, cash and cash equivalents consists of cash and
short term deposits, as defined above.
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