SIGNIFICANT ACCOUNTING POLICIES & NOTES ON ACCOUNTS: Company Overview Green Field Agri Ventures Limited 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 marketbrsence. Green Field specialized in agri related software and hardware solutions, with proven reputation for delivering high quality solutions to a broad spectrum of industry verticals. NOTE 1:- SIGNIFICANTACCOUNTINGPOLICIES: 1. Basis of brparation of financial statements These financial statements are brpared 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 brscribed 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 brpared under the historical cost convention. Recognition of income and expenses, accrual basis of accounting is followed. 2. Use of Estimates The brparation 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 contingent 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 intangible assets. Management periodically assessed using external and internal sources whetherthere is an indication that an asset may be impaired. Contingencies are 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 cost sare 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 determining the degree of completion. Revenues from sale of software licenses are recognized upon delivery. Revenues from maintenance contracts are recognized pro-rata overthe 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 completion. 4. Expenditure Expenses are accounted on accrual basis and provisions are made for all known losses and liabilities. 5. Fixed Assets, intangible assets and capital work-in-progress Fixed Assets are stated at cost, less accumulated debrciation. 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. Debrciation and amortization Debrciation 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 be available against which such deferred tax assets can be realized. 8. Employee Benefits Liability for employee benefits, both short term and long term, for brsent 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. 9. Foreign currency transactions Income and expenses in foreign currencies are converted at exchange rates brvailing 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 brvailing 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 brsent 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 brsent 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 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. 13. Dues to micro and small-scale industrial undertakings As at March 31, 2015 as per available information with the company, there are no dues to small scale Industrial Undertakings. 14.. Particulars of Employees required in pursuant to the provisions of Section 197(12) of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014- Nil. 15. . Financial figures have been rounded off to nearest rupee. 16. Previous year figures have been regrouped wherever if thought necessary in conformity with the current year groupings. Paise have been rounded off to the nearest rupee. Notes on financial statements, Cash Flow Statement and statement on accounting policies form an integral part of the balance sheet and profit and loss statement. As per our report of even date attached For CHANAMOLU & CO., Chartered Accountants Firm Regn. No.010000S G.Murali Partner Membership No.234971 Place: Hyderabad Date: 30.05.2015 For and on behalf of he board of directors GREEN FIELD AGRI VENTURES LIMITED (P.PUSHPA LATHA) DIRECTOR (DIN: 05263926) (B.RENUKA) DIRECTOR (DIN:06362015) PLACE : VISAKHAPATNAM DATE : 30.05.2015 |