Company Overview
MUDUNURU LIMITED (Formally Known as Green Field Agri Ventures Limited) is a technology-enabled IT solutions company, foreseeing future needs & exigencies, delivering excellent products of high quality and reliability with unflinching commitment and having emphatic global market presence. MUDUNURU LIMITED (Formally Known as Green Field Agri Ventures Limited) specialized in agri related software and hardware solutions, with proven reputation for delivering high quality solutions to a broad spectrum of industry vertical s.
1. Basis of preparation of financial statements
These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (’the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014.
Management evaluates all recently issued or revised accounting standards on an ongoing basis. The financial statements are prepared under the historical cost convention. Recognition of income and expenses, accrual bas is of accounting is to allowed.
2. Use of Estimate#
The preparation of financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported balances of assets and Liabilities and disclosures relating to coming assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and in tangible assets.
Management periodically assessed using external and internal sources whether there is an indication that an asset maybe impaired. Contingencies arc recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Actual results could differ from those estimates.
3. Revenue Recognition
Revenues from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred
Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognized over the life of the contract using the proportionate completion method, with contract costs detaining the degree of completion.
Revenues from sale of software licenses are recognized upon delivery.
Revenues from maintenance contracts are recognized pro-rata over the period of the contract.
In respect of Business Process Outsourcing (BPO) services, revenue on time and material and unit priced contracts is recognized as the related services, rendered, whereas revenue from fixed price contracts is recognized as per the proportionate completion method with contract cost determining the degree of the completion.
4. Expenditure
Expenses are accounted on accrual basis and provisions are made to all known losses and liabilities.
5. Fixed Assets, intangible assets and capital work-in-progress
Fixed Assets are stated at cost, less accumulated depreciation. All direct costs are capitalized until fixed assets are ready for use including taxes, duties, freight and other incidental expenses relating to acquisition and installation. Capital work-in-progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the balance sheet date. Intangible assets are recorded at the consideration paid for acquisition.
6. Deprecation and amortization
Depreciation on fixed assets has been provided on straight-line method based on useful life of asset specified in Schedule II of the Companies Act, 2013 on pro-rata basis.
7. Income tax
Income taxes are computed using the tax effect accounting method, in accordance with the Accounting Standard (AS 22) "Accounting for Taxes on Income" which includes current taxes and deferred taxes. Deferred income taxes reflect the impact if current year timing differences between taxable income and accounting income for the year and the relevant of timing difference of earlier years. Deferred tax asset and liabilities are measured at the tax rates that are expected to apply to the period when the asset / liability is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred Tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will lie available against which such deferred tax assets can be realized.
8, Employee Benefits
Liability for employee benefits, both short term and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) 15 (revised) 'Employee Benefits * issued by the Institute of Chartered Accountants of India.
Contribution to Provident Fund (a defined contribution plan) made to Regional Provident Fund Commissioner is recognized as expenses.
S. Foreign currency transactions
Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognized in the statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise's net investments in a non-integral foreign operation are accumulated in a foreign currency Translation reserve.
10. Inventories
Inventories are valued at cost on FIFO basis.
11. Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized in the financial statements. A contingent asset neither is neither recognized nor disclosed in the financial statements.
12. Cash and cash equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.
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