B. Material Accounting Policies: HhhhS
I Basis of Accounting Policy
i) The financial statements are prepared in accordance with applicable Indian Accounting
Standards (Ind AS) and on accounting principles of going concern. These financial
statements have been prepared to comply with all material aspects with the Indian
accounting standards notified under section 133 of the Act, (the 'Act") read with Rule 7 of
the Companies (Accounts) Rules, 2014, and the other relevant provisions of the Act.
ii) Accounting policies have been consistently applied except where a newly issued
accounting standard is initially adopted or a revision to an existing accounting standard
requires a change in the accounting policies hitherto in use.
iii) 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 the Schedule III to the Act.
Based on the nature of products and the time between the acquisition of assets for
processing and their realization in cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for the purpose of current classification of
assets and liabilities.
II Use of Estimates
The preparation of Financial Statements requires estimates and assumptions to be made
that affect the reported amounts of assets and liabilities on the date of Financial Statements
and the reported amounts of revenues and expenses during the reporting period.
Difference between the actual results and the estimates are recognised in the period in
which the results are known/ materialised.
Ill Property, Plant & Equipment
Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates,
less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets
comprises of its purchase price, borrowing cost and any cost directly attributable to
bringing the asset to its working condition for its intended use.
Subsequent expenditures related to an item of Tangible Asset are added to its book value
only if they increase the future benefits from the existing asset beyond its previously assessed
standard of performance.
An ifem of fixed assets is derecognised upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the
difference between the sales proceeds and the carrying amount of the asset and is
recognised in profit or loss. A
Expenditure related to and incurred during the implementation of the projects is included
under Capital Work-in-Progress and the same are capitalized under the appropriate heads
on completion of the projects.
On transition to Ind AS, the Company has elected to continue with the carrying value of all
of its property, plant and equipment recognised as at April 1, 2023 measured as per the
previous GAAP and use that carrying value as the deemed cost of the property, plant and
equipment.
IV Expenditure related to and incurred during the implementation of the projects is included
under Capital Work-in-Progress and the same are capitalized under the appropriate heads
on completion of the projects.
V Depreciation
Depreciation is provided on assets adopting written down value method as per the rates
precribed in schedule XIV of the eirthwhile Companies Act 1956.
Depreciation on additions to the assets and the assets sold or disposed off, during the year
is provided on prorata basis, at their respective useful life or rate of depreciation as
prescribed with reference to the date of acquisition / installation or date of sale / disposal.
(i) Assessment is done at each Balance Sheet date as to whether there is any indication
that an asset may be impaired. For the purpose of assessing impairment, the smallest
identifiable group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows from other assets or groups of assets, is considered as a
cash generating unit. If any such indication exists, an estimate of the recoverable amount
of the asset/cash generating unit is made. Assets whose carrying value exceeds their
recoverable amount are written down to the recoverable amount. Recoverable amount is
higher of an asset's or cash generating unit's 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 an asset and from its disposal at the end of its useful life. Assessment is also done at
each Balance Sheet date as to whether there is any indication that an impairment loss
recognised for an asset in prior accounting periods may no longer exist or may have
decreased.
(ii) The assets which have completed their respective useful life have been fully impaired
and deducted from the cost of assets.
VII Biological Assets
Recognition and measurement
The company recognises the biological asset (agricultural produce) when:
(a) the company controls the asset as a result of past events;
(b) it is probable that future economic benefits associated with the asset will flow to the
company; and
(c) the fair value or cost of the asset can be measured reliably
The biological asset are measured at the end of each reporting period at its fair value less
costs to sell.
VIII Inventories
Inventories are valued at lower of cost or net realizable value. Inventories are taken as
valued and certified by the management of the company.
Inventories comprise of Unprocessed seeds, Processed Seeds, traded goods packing
materials and consumables. Inventories are valued at the lower of cost or the net realisable
value after providing for obsolescence and other losses, where considered necessary. Cost
includes all charges in bringing the goods to their present location and condition and
receiving charges.
IX Revenue Recognition
(i) Revenue is primarily derived from sale of seeds to distributors, dealers and farmers.
Revenue is recognized only when risks and rewards incidental to ownership are transferred
to the customer, it can be reliably measured and it is reasonable to expect ultimate
collection. Revenue from operations includes sale of goods.
(ii) Sales return are accounted for / provided for in the year of return.
(iii) Interest and other income is accounted for on the basis of accrual.
(iv) Subsidy, Incentive is accounted for on cash/receipt basis.
X Research And Development Expenditure:
Revenue expenditure pertaining to research and cost of development of products is
charged to the Statement of Profit and Loss.
XI Foreign Currency Transactions:
i) Transactions in foreign currency are recorded at the rate prevailing on the date of the
transaction.
ii) Monetary assets and liabilities in foreign currency oufstanding as at the year-end are
stated at the rates of exchange prevailing at the close of the year. The resultant gains/losses
of the year are recognized in the Statement of Profit and Loss.
XII Taxation
(I) Income Tax
Provision for Current Tax is made and retained in the accounts on the basis of estimated tax
liability as per applicable provisions of Income Tax Act 1961.
(Ii) Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is probable that taxable profits will
be available against which those deductible temporary differences can be utilised. Such
deferred tax assets and liabilities are not recognised if the temporary difference arises from
the initial recognition (other than in a business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period
and reduced to the extent that it is no longer probable that sutficient taxable profits will be
available to allow all or part of the asset to be recovered
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset realised, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and deferred fax liabilifies are offset if a legally enforceable right exists
to set off current tax assets against current tax liabilities and the deferred taxes relate to the
same taxable entity and the same taxation authority.
(iii) Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future
economic benefits in the form of adjustment to future income tax liability, is considered as
an asset if there is convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable
that future economic benefit associated with it will flow to the Company.
(iv) Current and deferred tax for the period
Current and deferred tax are recognised in profit or loss, except when they relate to items
that are recognised in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognized in other comprehensive income or directly in
equity respectively. Where current tax or deferred tax arises from the initial accounting for
a business combination, the tax effect is included in the accounting for the business
combination.
The Company recognises interest levied and penalties related to Income Tax assessments
in the tax expanse.
XIII Investments
Non Current investments are stated at cost. Provision for diminution in the value of Non
Current investments is made only if such a decline is other than temporary.
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