A. SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS
1.1 Corporate Information
M/s HEALTHY LIFE AGRITEC LIMITED having its registered office at SH-B/09, New Heera Panna CHS LTD, Gokul Village Shanti Park, Mira Road East Thane, Thane, Maharashtra, India, 401107, was originally incorporated under the provisions of the Companies Act, 2013, on 08th November 2019. The name of the company has been changed to Healthy Life Agritec Private Limited on April 22, 2020. The company was thereafter converted from a private limited company to public limited company under Part I chapter XXI of the companies Act, 2013 with the name of Healthy Life Agritec Limited and received a fresh certificate of corporation from the registrar of Companies, Maharashtra on 8 March 2022.
The corporate identification number of the company is ^L52520MH2019PLC332778. The company is in the business of trading of milk, live poultry and fresh meat products.
1.2 Basis of Preparation of Financial Statements
The Financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Standards specified under Section 133 of the companies Act, 2013 ("the 2013 Act") and the relevant provisions of the 1956 Act /2013 Act, as applicable. The Financial statements of the company are prepared under the historical cost convention using the accrual method of accounting. The accounting policies adopted in preparation of the financial statements are consistent with those of the previous year. All assets and liabilities have been classified as current or non - current as per the Company's normal operating cycle and other criteria set out in Schedule III of the 2013 Act.
1.2.1 Summary of significant accounting policies
A. Use of Estimates
The presentation of the financial statements, in conformity with Indian GAAP, requires the Management to make estimates and assumptions that effect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable, future results could differ, the difference between the actual results are known / materialise.
B. Useful lives of property, plant, and equipment
Tangible assets are carried at cost less accumulated depreciation and accumulated impairment losses, if any. Cost comprises of the purchase price including import duties and non - refundable taxes, and directly attributable expenses incurred to bring the asset to the location and condition necessary for it to be capable of being operated in the manner
intended by managements. Capital expenditure incurred on rented properties is classified as 'Leasehold improvements 'under property, plant and equipment.
Subsequent costs related to an item of Property, Plant, and Equipment are recognised in the carrying amount of the item if the recognition criteria are met. Items of Property, Plant and Equipment that have been retired from active use and are held for disposal are stated at the lower of their net carrying amount and net realisable value and are shown separately in the financial statements under the head 'Other current assets. Any write - down in this regard is recognised immediately in the statement of Profit and Loss. An item of Property, Plant and Equipment is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on derecognition is recognised in the Statement of Profit and Loss.
Depreciation on tangible asset is recognised on a straight-line basis based on a useful life of the assets prescribed in Schedule II to the Act. If the management's estimates of the useful life of an asset at the time of acquisition of assets or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule, depreciation is provided at a higher rate owing to their risk of higher obsolesce / wear & tear. The useful life of the assets has been reassessed based on the number of years for which the assets have already been put to use and the estimated minimum balance period for which the assets can be used in the company. The estimated life of property, plant and equipment has been determined as follows.
No further depreciation is provided in respect of assets that are fully written down but are still in use. Leasehold land in the nature of perpetual lease is not amortised. Other leasehold land is amortised over the period of the lease. All property, plant and equipment individually costing less than Rs. 5,000/- are fully depreciated in the year of purchase.
C. Intangible Assets
Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortised on a straight-line basis over their estimated useful lives. A rebuttable presumption that the useful life of an intangible asset will not exceed fifteen years from the date of when the asset is available for use in considered by the management. The amortisation period and the amortisation method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortisation period is changed accordingly.
Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset
and recognized as income or expense in the statement of Profit & Loss. The estimated useful lives of intangible assets are as follows:
D. Impairment
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than it is carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognized in the statement of Profit and Loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed, and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.
E. Investment
Investment is classified between long term and current categories as per the Accounting Standards issued by Institute of Chartered Accountants of India.
Long term investment is stated at cost. Provision for diminution in the value of investments, if any, is made if the decline in value is of permanent nature. Current investments are valued at lower of cost or market value.
As a conservative and prudent policy, the Company does not provide for increase in the book value of individual investment held by it on the date of Balance sheet.
F. Inventories
The figure of closing stock is taken on the basis of physical count of stock by the management at the end of the year.
Inventories are valued at lower of historical cost and net realizable value.
Cost of inventories have been computed to include all costs of purchases, cost of conversion all non- refundable duties & taxes and other costs incurred in bringing the inventories to their present location and condition.
Stock -in-trade are based on weighted average cost basis. Obsolete, slow moving and defective inventories are valued at net realizable value i.e., scrap rate. Goods in transit are stated at actual cost incurred up to the date of Balance Sheet.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and estimated cost necessary to make the sale. Necessary adjustment for shortage / excess stock is given based on the available evidence and past experience of the company.
G. Revenue Recognition
1) Revenue from sale of product
Revenue is recognised in respect of sales on dispatch of product to the customers. Quality rebates, claims and other discounts, if any, are disclosed separately.
2) Other revenue
Interest on bank deposits is recognized on the time proportion basis taking into account the amounts invested and the rate of interest as applicable.
H. Employee Benefits
1) Gratuity
Gratuity is calculated in the manner prescribed under Income Tax Act, 1961 and is Recognized asexpense on actual payment basis.
2) Other Short-Term Benefits
Other short-term benefits are recognized as expenses on actual payment basis for the period duringwhich services are rendered by the employee.
I. Foreign Currency transactions Initial recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount exchange rate between the reporting currency and the foreign currency at the date of the transaction.
Conversion
Foreign currency monetary items are reported using the closing rate. Non - monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non- monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values are determined.
Exchange differences
Exchange difference arising on the settlement of monetary items or on restatement of the Company's monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise other than of the capitalisation of exchange differences which is referred to in PPE above.
J. Taxation
The tax expense comprises of current tax and deferred tax. Current tax is the amount of income tax determined to be payable in respect of taxable income for a period as per the provisions of Income Tax Act, 1961. Deferred tax is the effect of timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are reviewed at each balance sheet date and recognised / derecognised only to the extent that there is reasonable /virtual certainty, depending on the nature of
the timing difference, that sufficient future taxable income will be available against which such deferred tax assets can be realised.
Minimum Alternate Tax ('MAT') credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note on Accounting for credit Available in respect of Minimum Alternative Tax under the Income Tax under the Income Tax Act, 1961, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT credit entitlement. The company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not reasonably certain that the Company will pay normal income tax during the specified period.
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