Accounting Policies of Suvidha Infraestate Corporation Ltd. Company

Mar 31, 2024

NOTE : 18. MATERIAL ACCOUNTING POLICIES:

COMPANY OVERVIEW:

1.1 CORPORATE INFORMATION

Suvidha Infraestate Corporation Limited (‘The Company’) is a public limited company incorporated
and domiciled in India. The address of its registered office is A 305, 307 Krishna Complex, Opposite
Devashish School, Behind SatyagrahChhavni, Off S G Road, Bodakdev Ahmedabad 380 054, Gujarat,
India. The Company was incorporated in 1992. The company’s main business is real estate promotion
and development in the residential and commercial segments.

1.2 BASIS OF PREPARATION
Statement of Compliance:

These financial statements have been prepared in accordance with the Indian Accounting Standards
(Ind AS) as specified under section 133 of the Companies Act 2013 read together with the Rules
notified there under to the extent applicable and the other relevant provisions of the Act,
pronouncements of the regulatory bodies applicable to the company.

The financial statements have been prepared on going concern and accrual basis. The accounting
policies are applied consistently to all the periods presented in the financial statements.

The financial statements of the Company for the year ended 31st March 2024, were approved by
the Board of Directors on 10/05/2024.

1.3 BASIS OF MEASUREMENT:

The Ind AS Financial Statements have been prepared on a going concern basis using historical cost
convention and fair value measurement, wherever applicable and on an accrual method of accounting,
except for certain financial assets and liabilities as specified and defined benefit plans which have
been measured at actuarial valuation as required by relevant Ind AS.

1.4 BASIS FOR CLASSIFICATION OF ASSETS & LIABILITIES:

All the assets and liabilities have been classified as current or noncurrent as per the Company’s
normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of assets or processing and their
realization in cash and cash equivalent,project-related assets and liabilities have been classified
into current and non-current based on the operating cycle of respective projects. The Company
has ascertained its operating cycle to be 12 months for the purpose of current - noncurrent
classification for all other assets and liabilities.

1.5 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles
requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent liabilities at the date of the financial statements
and the results of operations during the reporting period. Although these estimates are based on
management’s best knowledge of current events and actions, actual results could differ from
these estimates. Revisions to accounting estimates are recognised prospectively.

The areas involving critical estimates or judgments are:

- Estimation of Useful life of Property, plant and equipment and intangibles

- Estimation of impairment

- Estimation of taxes

- Estimation of the cost of the project for revenue recognition

- Estimation of defined benefit obligation

- Estimation of provision and contingent liabilities

- Estimation of Share based payments to employees

1.6 PROPERTY, PLANT AND EQUIPMENT:

Recognition and initial measurement

Property, plant, and equipment are stated at their cost of acquisition. The cost comprises purchase
price, borrowing cost if capitalization criteria are met, and directly attributable cost of bringing
the asset to its working condition for the intended use. Any trade discounts and rebates are
deducted in arriving at the purchase price. Subsequent costs are included in the asset’s carrying
amount or recognized as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Company. All other repair and
maintenance costs are recognized in the statement of profit or loss as incurred.

Subsequent measurement (depreciation and useful lives)

Property, plant, and equipment are subsequently measured at cost less accumulated depreciation
and impairment losses. Depreciation on property, plant, and equipment is provided on a straight¬
line basis, computed based on useful lives (as set out below) prescribed in Schedule II to the Act.

The residual values, useful lives, and method of depreciation are reviewed at the end of each
financial year.

De-recognition

An item of property, plant, and equipment and any significant part initially recognized is de¬
recognized upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on the de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is recognized in the
statement of profit and loss when the asset is de-recognized.

1.7 CAPITAL WORK-IN-PROGRESS:

Capital work-in-progress represents expenditure incurred in respect of capital projects/intangible
assets under development and are carried at cost. Cost includes land, related acquisition expenses,
development/ construction costs, borrowing costs, and other direct expenditures. At present,
there is no capital work in progress.

1.8 INTANGIBLE ASSET:

Intangible Assets shall be recognized when it is probable that the future economic benefits that
are attributable to the assets will flow to the company and the cost of the asset can be measured
reliably.

Intangible Assets shall be stated at cost, net of accumulated amortization, and accumulated
impairment loss, if any. Cost includes any expenditure directly attributable to making the asset
ready for its intended use.

Intangible assets with finite lives shall be amortized over their useful economic life.

1.9 BORROWING COST:

Borrowing costs attributable to the acquisition, construction, or production of qualifying assets
(i.e. assets that necessarily take a substantial period to get ready for their intended use or sale)
are capitalised as part of the cost of such asset up to the date when such asset is ready for its
intended use or sale. Other borrowing costs are recognised as expenses in the period in which
they are incurred. Further, interest earned out of borrowed funds from temporary investments is
reduced from the borrowing cost.

1.10 FINANCIAL INSTRUMENT:

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

I). Financial Asset:-

Initial recognition and measurement:

All financial instruments are recognized initially at fair value plus, in the case of financial assets
not recorded at fair value through P&L, transaction costs that are attributable to the acquisition
of the financial asset, purchase or sales of financial assets that require delivery of assets within
a time frame established by regulation or convention in the market place are recognized on the
trade date i.e. the date that the company commits to purchase or sell the asset.

Subsequent Measurement:

For the purpose of subsequent measurement financial assets are classified as measured at:

• Amortised cost

• Fair value through profit and loss (FVTPL)

• Fair value through other comprehensive income (FVOCI)

(a) Financial Asset measured at amortized cost:

Financial Assets held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding are measured at amortized cost using effective interest
rate (EIR) method. The EIR amortization is recognized as finance income in the statement
of Profit & Loss. The company while applying the above criteria has classified the following
at amortized cost:

a. Trade receivables

b. Investment in Subsidiaries

c. Loans

d. Other financial assets

(b) Financial Assets Measured at fair value through other comprehensive income:

Financial assets that are held within a business model whose objective is achieved by
both, selling financial assets and collecting contractual cash flows that are solely payments
of principal and interest, are subsequently measured at fair value through other
comprehensive income. Fair value movements are recognized in the other comprehensive
income (OCI). Interest income is measured using the EIR method and impairment losses, if
any are recognized in the Statement of Profit and Loss. On derecognition, cumulative gain
or loss previously recognised in OCI is reclassified from the equity to ‘other income’ in the
Statement of Profit and Loss.

(c) Financial Assets at fair value through profit & loss (FVTPL):

Financial assets are measured at Fair value through Profit & Loss if it does not meet the
criteria for classification as measured at amortized cost or at FVTOCI. All fair value changes
are recognized in the statement of Profit & Loss.

Equity Instruments:-

All investments in equity instruments classified under financial assets are initially measured
at fair value, the group may, on initial recognition, irrevocably elect to measure the same
either at FVOCI or FVTPL.

De-recognition of Financial Assets:-

Financial assets are derecognized when the contractual rights to the cash flows from the
financial asset expire or the financial asset is transferred and the transfer qualifies for
Derecognition. On Derecognition of a financial asset in its entirety, the difference between
the carrying amount (measured on the date of recognition) and the consideration received
(including any new asset obtained less any new liability assumed) shall be recognized in
the statement of Profit & Loss.

Impairment of Financial Assets:-

In accordance with Ind AS 109, the company applies the expected credit loss (ECL) model
by adopting the simplified approach using a provision matrix reflecting current conditions
and forecasts of future economic conditions for measurement and recognition of impairment
loss on the following financial assets and credit risk exposure:

(a) Financial Assets that are debt instruments, and are measured at amortized cost e.g.
loans, debt securities, deposits, trade receivables, and bank balance

(b) Financial Assets that are debt instruments and are measured at FVTOCI.

(c) Lease receivables under Ind AS 17.

(d) Trade receivables or any contractual right to receive cash or another financial asset

(e) Loan commitments which are not measured at FVTPL

(f) Financial guarantee contracts which are not measured at FVTPL
II). Financial Liability:

Initial recognition and measurement:

Financial liabilities are recognized initially at fair value plus any transaction cost that are
attributable to the acquisition of the financial liability except financial liabilities at FVTPL
which are measured at fair value.

Subsequent measurement:

Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial
liabilities carried at fair value through profit or loss are measured at fair value with all changes
in fair value recognised in the Statement of Profit and Loss.

Financial Liabilities at amortized cost:

The amortized cost for financial liabilities represents the amount at which financial liability is
measured at initial recognition minus the principal repayments, plus or minus the cumulative
amortization using the effective interest method of any difference between the initial amount
and the maturity amount.

The company is classifying the following under amortized cost

- Borrowings from banks

- Borrowings from others

- Trade payables

- Other Financial Liabilities
Derecognition:

A financial liability shall be derecognized when, and only when, it is extinguished i.e. when the
obligation specified in the contract is discharged or cancelled or expires.

1.11 INCOME TAXES:

Income tax expense for the year comprises current tax and deferred tax. Provision for Current Tax
is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account
available deductions and exemptions.

Deferred tax is recognised in respect of temporary differences between the carrying amount of
assets and liabilities for financial reporting purposes and the corresponding amounts used for
taxation purposes. Deferred tax is measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the
extent that it is probable that future taxable profits will be available against which the asset can
be utilised.

1.12.REVENUE RECOGNITION:

A. On March 28, 2018, the Ministry of Corporate Affairs (MCA) notified Ind AS 115 - Revenue from
Contract with Customers and certain amendments to existing Ind AS. These amendments shall
apply to the Company from April 01, 2018.

Issue of Ind AS 115 - Revenue from Contracts with Customers:

Ind AS 115 will supersede the current revenue recognition guidance including Ind AS 18 Revenue,
Ind AS 11 Construction Contracts, and the related interpretations. Ind AS 115 provides a single
model of accounting for revenue arising from contracts with customers based on the
identification and satisfaction of performance obligations.

Ind AS 115 “Revenue from Contracts with Customers” provides a control-based revenue
recognition model and provides a five-step application approach to be followed for revenue
recognition.

• Identify the contract(s) with a customer;

• Identify the performance obligations;

• Determine the transaction price;

• Allocate the transaction price to the performance obligations;

• Recognise revenue when or as an entity satisfies performance obligation.

B. The full revenue is recognized on the sale of property when the firm has transferred to the
buyer all significant risks & rewards of ownership and when the seller has not to perform any
substantial acts to complete the contract.

The Company has applied Ind AS 115 which establishes a comprehensive framework for
_determining whether, how much, and when revenue is to be recognised. Ind AS 115 replaces

Ind AS 18 Revenue Recognition and Ind AS 11 Construction Contracts. The Company has adopted
Ind AS 115 using the modified retrospective method. The effect of initially applying this standard
is recognised at the date of initial application (i.e. April 1, 2018). The standard is applied
retrospectively only to contracts that are not completed as at the date of initial application
and the comparative information in the statement of profit and loss is not restated - i.e. the
comparative information continues to be reported under Ind AS 18 and Ind AS 11.

C. Interest income is recognized using the effective interest rate (EIR) method.

1.13 RETIREMENT & OTHER EMPLOYEE BENEFITS:-

A. Defined Contribution Plans:-

The company’s contribution paid / payable for the year to Provident Fund is recognized in the
Profit & Loss Statement. The company has no obligation other than the contribution payable
to the Government.

The company funds a post-employment benefit obligation treats the same as defined contribution
plan as per para 46 of Ind AS 19.

B. Defined Benefit Plans:-

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit obligation at the end of the reporting period
less the fair value of plan assets. The defined benefit obligation is calculated annually by
actuaries using the projected unit credit method.At present the company has no obligation.

C. The company has a system of providing accumulating compensating absences non-vesting and
hence no provision is made in the books of accounts for the leaves.

1.14.IMPAIRMENT OF ASSETS:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value.
Recoverable value is being higher of value in use and net selling price. Value in use is computed at
net present value of cash flow expected over the balance useful life of the assets. An impairment
loss is recognized in the year in which an asset is identified as impaired as an expense in the Profit
and Loss Account.

1.15 INVENTORY:

A. Inventories of finished foods are valued at the lower of cost and net realisable value.

B. In case of the inventory of Raw-materials, they are valued at cost using FIFO method.

C. The Closing stock of WIP has been valued at cost.

1.16 TRANSACTIONS IN FOREIGN CURRENCY:

A. Foreign currency transactions are translated into the functional currency using exchange
rates at the date of the transaction.

B. Monetary items denominated in foreign currencies at the period end are restated at year end
rates.

C. Non-monetary foreign currency items are carried at cost.

D. Any income or expense on account of exchange difference either on settlement or on
transaction is recognised in the statement of profit and loss.

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Mar 31, 2014

1.1 The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

1.2 The Company adopts the accrual concept in the preparation of the accounts.

1.3 RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

1.4 FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

1.5 INVENTORIES

(a) In case of Inventory of raw materials, the raw materials received on the site are treated as consumed in the books of the company.

(b) Closing Stock of WIP has been valued at cost.

1.6 TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

1.7 DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originates in one period and is capable of reversal in one or more subsequent periods.

1.8 IMPAIRMENT OF FIXED ASSETS:-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.9 RETIREMENT & OTHER EMPLOYEE BENEFITS:-

There are employees in the company and the following Accounting Policies are followed by the company.

A. When the company will exceed 10 employees, Gratuity shall be charged to revenue upon the estimates made by the company.

B. Leave encashment is not charged to revenue as the same is not allowed by the company. The unutilised leaves of the employees are allowed to be carried forward to the next year without any lapse. The employees are encouraged to fully utilise their leaves before they retire. At the time of retirement of any employee if there is any balance of unutilised leaves, then the said balance lapses. Hence, the company does not make any provision for leave encashment.

C. When the company will exceed 10 employees, The Company shall charge its contribution to provident fund to Profit & Loss Account of the year.

1.10 SALES

The company is recognizing the sales revenue based on guidance note on recognition of revenue by Real Estate Developers issued by ICAI and is based on percentage completion method.

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Mar 31, 2013

1.1 The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

1.2 The Company adopts the accrual concept in the preparation of the accounts.

1.3 RECOGNITION OF INCOME & EXPENDITURE All Income & Expenditure are accounted for on accrual basis.

1.4 FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

1.5 INVENTORIES

(a) In case of Inventory of raw materials, the raw materials received on the site are treated as consumed in the books of the company.

(b) Closing Stock of WIP has been valued at cost.

1.6 TAXES ON INCOME: Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

1.7 DEFERRED TAX: Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originates in one period and is capable of reversal in one or more subsequent periods.

1.8 IMPAIRMENT OF FIXED ASSETS:- Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.9 RETIREMENT & OTHER EMPLOYEE BENEFITS:- There are employees in the company and the following Accounting Policies are followed by the company.

A. When the company will exceed 10 employees, Gratuity shall be charged to revenue upon the estimates made by the company.

B. Leave encashment is not charged to revenue as the same is not allowed by the company. The unutilised leaves of the employees are allowed to be carried forward to the next year without any lapse. The employees are encouraged to fully utilise their leaves before they retire. At the time of retirement of any employee if there is any balance of unutilised leaves, then the said balance lapses. Hence, the company does not make any provision for leave encashment.

C. When the company will exceed 10 employees, The Company shall charge its contribution to provident fund to Profit & Loss Account of the year.

1.10 SALES

The company is recognizing the sales revenue based on guidance note on recognition of revenue by Real Estate Developers issued by ICAI and is based on percentage completion method.

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Mar 31, 2012

1.1 The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

1.2 The Company adopts the accrual concept in the preparation of the accounts.

1.3 RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

1.4 FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 onthestraightlinemethodinrespectofallassets.

1.5 INVENTORIES

Raw Material is valued at cost.

Closing Stock of WIP has been valued at cost.

1.6 TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

1.7 DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.8 IMPAIRMENTOFFIXEDASSETS:-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.9 RETIREMENT & OTHER EMPLOYEE BENEFITS:-

There are no employees in the company and the following Accounting Policies shall be followed by the company as and when it has employed any persons.

A. When the company will exceed 10 employees, Gratuity shall be charged to revenue upon the estimates made by the company.

B. Leave encashment is not charged to revenue as the same is not allowed by the company. The unutilised leaves of the employees are allowed to be carried forward to the next year without any lapse. The employees are encouraged to fully utilise their leaves before they retire. At the time of retirement of any employee if there is any balance of unutilised leaves, then the said balance lapses. Hence, the company does not make any provision for leave encashment.

C. When the company will exceed 10 employees, The company shall charge it's contribution to provident fund to Profit & Loss Account of the year.

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Mar 31, 2011

1. The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

5. INVENTORIES

Raw Material is valued at cost .

Closing Stock of WIP has been valued at cost.

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS:- Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

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Mar 31, 2010

1. The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

5. INVENTORIES

Raw Material shall be valued at cost or market value whichever is less.

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS:- Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

DAIRYFIELD LIMITED Notes forming part of Accounts:

1. Corresponding figures of previous year have been regrouped wherever necessary.

2. Balances of Unsecured Loans, Sundry Creditors, Sundry Debtors and Loans & Advances are subject to confirmation.

3. In the opinion of the board all the current assets have a value on realization, in the ordinary course of business at least equal to the amount at which they are stated except doubtful debts amounting to Rs. 1.66 lacks for which no provision is made in the books.

4. As per the explainations & information provided to us, the company has written off Tax Deducted at Source Payable of Rs.4,12,000/-.

6. Based on the information available with the Company, there are no suppliers who are registered under the Micro, Small and Medium Enterprises Development Act, 2006 as at 31st March 2010. Hence, the information as required under the Micro, Small and Medium Enterprises Development Act, 2006 is not disclosed.

8. Deferred Tax

The company is passing through bad times and has huge accumulated losses. At present the company is not carrying on any gainful economic activities. Hence, there is no virtual certainty that the losses will be recouped in foreseeable future. So the deferred tax is not recognised in the books of accounts.

9. At present the company is not undertaking any activity. Hence, the segmental reporting as required by the AS-17 is not presented.

10. The information required as per Paragraph 4 D of part II of schedule VI of the Companies Act 1956, regarding earnings in foreign currency and amount spent in foreign currency are NIL.

11. The information required as per Paragraph 4 C of part II of schedule VI of the Companies Act 1956 ,regarding licensed capacity, installed capacity and actual production is not applicable as the company has already sold its machinery and not carrying any manufacturing activities.

12. The information required as per Paragraph 3 of part II of schedule VI of the Companies Act 1956, regarding quantitative information about the purchase made, the opening and closing stock, raw material consumed are nil.

13. Detail of loans and advances to Directors and Companies, Firms and other parties in which the directors are interested.

14. Information required under AS-18 on Related Party Disclosures issued by the Institute of Chartered Accountants of India.

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Mar 31, 2009

1. The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activites are carried on by the company. However, books of accounts are maintained on a going concern basis.

2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

5. INVENTORIES

Raw Material shall be valued at cost or market value whichever is less.

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX :

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS :

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

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Mar 31, 2008

1. The Company is a sick industrial undertaking u/s 3(l)(o) of the Sick Industrial Company (Special Provision) Act, 1985. The activities are carried on by the company to a limited extent. However, books of accounts are maintained on a going concern basis.

2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION :

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act,1956 on the straight line method in respect of all assets.

5. INVENTORIES

Raw Material is valued at cost or market value whichever is less.

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS:-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

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Mar 31, 2007

1. The Company is a sick industrial undertaking u/s 3(l)(o) of the Sick Industrial Company (Special Provision) Act, 1985. The activities are carried on by the company to a limited extent. However, books of accounts are maintained on a going concern basis. 2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION :

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act,1956 on the straight line method in respect of all assets.

5. INVENTORIES .

Raw Material is valued at cost or market value whichever is less.

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS :-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

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Mar 31, 2006

1. The Company is a sick industrial undertaking u/s 3(l)(o) of the Sick Industrial Company (Special Provision) Act, 1985. The activities are carried on by the company to a limited extent. However, books of accounts are maintained on a going concern basis. 2. The Company adopts the accrual concept in the preparation of the accounts.

3. RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

4. FIXED ASSETS & DEPRECIATION :

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

5. INVENTORIES

A. Raw Material is valued at cost or market value whichever is less.

B. Packing material is valued at cost .

6. TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

7. DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. IMPAIRMENT OF FIXED ASSETS:-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

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Mar 31, 1999

1. The Company has adopted accrual system of accounting for expenditure and revenue.

2. All expenditure incurred during the construction period upto 15-2-95 (being the date of commencement of commercial production) and grouped under the head "Expenditure pending allocation" are allocated to different fixed assets as on that date.

3. Fixed Assets are valued at their cost of acquisition inclusive of inward freight, taxes and incidental expenses related to such acquisition and their cost of installation.

4. Depreciation on Fixed Assets of the Company is provided on Straight Line Basis at the rates prescribed under schedule XIV to the Companies Act, 1956.

5. Inventories are valued as follows :

a. Raw Materials i.e. Milk and Milk Powder are valued at cost.

b. Finished goods such as Butter and Ghee are valued at their cost of production.

c. Butter Milk, Sour Milk and Cattle Feed are valued at net realisable value.

d. Stores and Spares are valued at their cost.

6. Miscellaneous Expenditure is being amortised over a period of ten years.

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Mar 31, 1997

1. The Company has adopted accrual system of accounting for expenditure and revenue.

2. All expenditure incurred during the construction period upto 15-2-95 (being the date of commencement of commercial production) and grouped under the head "Expenditure pending allocation" are allocated to different fixed assets as on that date.

3. Fixed Assets are valued at their cost of acquisition inclusive of inward freight,taxes and incidental expenses related to such acquisition and their cost of installation.

4. Depreciation on Fixed Assets of the Company is provided on Straight Line Basis at the rates prescribed under schedule XIV to the Companies Act, 1956. (Also see Note-2 of Schedule - N notes forming parts of Accounts)

5. Inventories are valued as follows :

a. Raw Materials i.e. Milk and Milk Powder are valued at cost. b. Finished goods such as Butter and Ghee are valued at their cost of production. c. Butter Milk, Sour Milk and Cattle Feed are valued at net realisable value. d. Stores and Spares are valued at their cost of purchase.

6. Miscellaneous Expenditure is being amortised over a period of ten years.

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Mar 31, 1996

1. The Company has adopted accrual system of accounting for expenditure and revenue.

2. All expenditure incurred during the construction period upto 15-2-95 (being the date of commencement of commercial production) and grouped under the head "Expenditure pending allocation" are allocated to different fixed assets as on that date.

3. Fixed Assets are valued at their cost of acquisition inclusive of inward freight, taxes and incidental expenses related to such acquisition and their cost of installation.

4. Depreciation on Fixed Assets of the Company is provided on Straight Line Basis at the rates prescribed under schedule XIV to the Companies Act, 1965.

5. Inventories are valued as follows:

a. Milk and Milk Powder are valued at cost.

b. Finished goods such as Butter and Ghee are valued at their cost of production.

c. Butter Milk, Sour Milk and Cattle Feed are valued at net realisable value.

d. Stores and Spares are valued at their cost of purchase.

6. Miscellaneous Expenditure is amortised over a period of ten years.

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Mar 31, 1993

The Company has no fixed assets as on the date of the Balance Sheet and hence no depreciation has been providedin the accounts.

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Mar 31, 1992

The Company has no fixed assets as on the date of the Balance Sheet and hence no depreciation has been providedin the accounts.