1.10 Provisions, contingent liabilities, and contingent assets-
A provision is recognised when the company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are measured & recognized based on management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company. Or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; orthe amount of the obligation cannot be measured with sufficient reliability. Contingent assets are not recognised in the financial statements. However, it is disclosed only when an inflow of economic benefits is probable.
1.11 Revenue Recognition-
The Company manufactures and sells a range of Food products
Revenue from sale of products is recognised when control of the products has transferred, being when the products are delivered to the customers/dealers. Delivery occurs when the products have been shipped or delivered to the specific location as the case may be, the risks of loss has been transferred, and either the Customers/Dealers has accepted the products in accordance with the sales contract Revenue is measured net of returns, trade discounts and volume rebates.
Export sales are accounted on the basis of Bill of Lading. Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.
Lease income on leased assets is recognized and included underthe other operating revenue.
1.12 Borrowing Costs-
Borrowing costs includes interest amortization of ancillary costs incurred in connection with the arrangements of borrowing and exchange differences from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset All other borrowing costs are expensed in the period they occur.
1.13 Taxes-
Provision for current tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of the Income tax Act 1961.
Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future.
1.14 Earnings per Share-
Basic earnings per share is computed by dividing profit or loss for the year attributable to equity holders by the weighted average number of shares outstanding during the year. Partly paid-up shares are included asfully paid equivalents according to the fraction paid-up.
Diluted earnings per share is computed using the weighted average number of shares and dilutive potential shares except where the result would be anti-dilutive.
1.15 Cash Flow Statement-
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
1.16 Government Subsidy-
Subsidy from the Government is recognized when there is reasonable assurance that the company will comply with the conditions attached to them.
1.17 Deferred Revenue Expenditure-
Expenditure incurred on advertisement and other expense for promotion of new products is amortised over a period od five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement is expensed off to profit & loss account in the year in which it is incurred.
Prabhnoor Singh Grewal Myadam Shirisha Raghuveer
Director - Sales Chairperson and Managing Director
DIN: 09217422 DIN: 07906214
Kothapalli Srinivasa Rao Ruch'rta Vij
Director - Sales Administration Company Secretary
DIN: 10198629 Membership No. F9210
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