SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUN TS

A. SIGNIFICANT ACCOUNTING POLICIES :

1. General

1. Basis of Accounting :

The financial statements are brpared on a going concern basis under the historical cost convention on the accrual basis of accounting, in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and comply with the Accounting Standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 to the extent applicable, as adopted consistently by the company.

2. Revenue Recognition:

Sales comprise sale of goods inclusive of Excise Duty and VAT/Central Sales Tax and are net of allowances for discounts, rate differences and leakages.

3. Fixed Assets:

In order to relate them more closely to current replacement values, all the fixed assets acquire up to 31 st March, 1993 were revalued as on that date and are accordingly carried at revalued figures. Fixed assets acquired after 31st March, 1993 are stated at cost inclusive of freight, taxes and incidental expenses related thereto.

4. Debrciation:

I) Debrciation has been calculated on straight line method at the rates provided in Schedule II to t he Companies Act, 2013.

ii) Debrciation on additions during die year has been provided for full year.

5. Inventories :-

I) Finished products produced by the Company are carried at lower of cost or market value.

ii) Raw materials, Packing Materials and Stores and Spare Parts are carried at cost.

iii) Cost is arrived at mainly on a 'First in first out' basis and is inclusive of freight and expen ses incurred.

6. Investments :-

Investments classified as Long Term Investments are stated at cost.

7. Contingent Liabilities :-

Contingent liabilities are not provided for and are disclosed by way of notes.

8. Employees' Retirement Benefits.

I) Company's contributions to Provident Fund are charged to Profit & Loss Account, ii) Gratuity is accounted for as and when the same is paid.

9. Deferred Tax is accounted for by computing the tax effect of timing difference which arise during the year and reverse subsequent periods.

B. NOTES TO ACCOUNTS :

1. Previous year figures have been recast and regrouped wherever necessary.

2. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provisions of all known liabilities is adequate and not in excess of the amount reasonably necessary.

3. The provision for Income Tax has been made as per the provisions of the Income Tax Act, 1961.

4. Amount held in margin accounts with State Bank of India, T.T. Nagar Branch, Bhopal is Rs. 12,98,665 (Previous year Rs. 12,42,039)

5. Amount payable to SSI Units exceeding Rs. One Lakh beyond a period of 30 days could not be mentioned as necessary information from all the parties are yet to be received.

6. TheAS-17 issued by the Institute of Chartered Accountants of India, regarding segment Reporting is not applicable as the Company is formulating only agro-chemical based products.