Indo US Bio-Tech Ltd. कंपली की लेखा नीति

Mar 31, 2025

B. Material Accounting Policies: HhhhS

I Basis of Accounting Policy

i) The financial statements are prepared in accordance with applicable Indian Accounting
Standards (Ind AS) and on accounting principles of going concern. These financial
statements have been prepared to comply with all material aspects with the Indian
accounting standards notified under section 133 of the Act, (the ''Act") read with Rule 7 of
the Companies (Accounts) Rules, 2014, and the other relevant provisions of the Act.

ii) Accounting policies have been consistently applied except where a newly issued
accounting standard is initially adopted or a revision to an existing accounting standard
requires a change in the accounting policies hitherto in use.

iii) All assets and liabilities have been classified as current or non-current as per the
Company''s normal operating cycle and other criteria set out in the Schedule III to the Act.
Based on the nature of products and the time between the acquisition of assets for
processing and their realization in cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for the purpose of current classification of
assets and liabilities.

II Use of Estimates

The preparation of Financial Statements requires estimates and assumptions to be made
that affect the reported amounts of assets and liabilities on the date of Financial Statements
and the reported amounts of revenues and expenses during the reporting period.
Difference between the actual results and the estimates are recognised in the period in
which the results are known/ materialised.

Ill Property, Plant & Equipment

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates,
less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets
comprises of its purchase price, borrowing cost and any cost directly attributable to
bringing the asset to its working condition for its intended use.

Subsequent expenditures related to an item of Tangible Asset are added to its book value
only if they increase the future benefits from the existing asset beyond its previously assessed
standard of performance.

An ifem of fixed assets is derecognised upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the
difference between the sales proceeds and the carrying amount of the asset and is
recognised in profit or loss. A

Expenditure related to and incurred during the implementation of the projects is included
under Capital Work-in-Progress and the same are capitalized under the appropriate heads
on completion of the projects.

On transition to Ind AS, the Company has elected to continue with the carrying value of all
of its property, plant and equipment recognised as at April 1, 2023 measured as per the
previous GAAP and use that carrying value as the deemed cost of the property, plant and
equipment.

IV Expenditure related to and incurred during the implementation of the projects is included
under Capital Work-in-Progress and the same are capitalized under the appropriate heads
on completion of the projects.

V Depreciation

Depreciation is provided on assets adopting written down value method as per the rates
precribed in schedule XIV of the eirthwhile Companies Act 1956.

Depreciation on additions to the assets and the assets sold or disposed off, during the year
is provided on prorata basis, at their respective useful life or rate of depreciation as
prescribed with reference to the date of acquisition / installation or date of sale / disposal.

(i) Assessment is done at each Balance Sheet date as to whether there is any indication
that an asset may be impaired. For the purpose of assessing impairment, the smallest
identifiable group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows from other assets or groups of assets, is considered as a
cash generating unit. If any such indication exists, an estimate of the recoverable amount
of the asset/cash generating unit is made. Assets whose carrying value exceeds their
recoverable amount are written down to the recoverable amount. Recoverable amount is
higher of an asset''s or cash generating unit''s net selling price and its value in use. Value in
use is the present value of estimated future cash flows expected to arise from the continuing
use of an asset and from its disposal at the end of its useful life. Assessment is also done at
each Balance Sheet date as to whether there is any indication that an impairment loss
recognised for an asset in prior accounting periods may no longer exist or may have
decreased.

(ii) The assets which have completed their respective useful life have been fully impaired
and deducted from the cost of assets.

VII Biological Assets

Recognition and measurement

The company recognises the biological asset (agricultural produce) when:

(a) the company controls the asset as a result of past events;

(b) it is probable that future economic benefits associated with the asset will flow to the
company; and

(c) the fair value or cost of the asset can be measured reliably

The biological asset are measured at the end of each reporting period at its fair value less
costs to sell.

VIII Inventories

Inventories are valued at lower of cost or net realizable value. Inventories are taken as
valued and certified by the management of the company.

Inventories comprise of Unprocessed seeds, Processed Seeds, traded goods packing
materials and consumables. Inventories are valued at the lower of cost or the net realisable
value after providing for obsolescence and other losses, where considered necessary. Cost
includes all charges in bringing the goods to their present location and condition and
receiving charges.

IX Revenue Recognition

(i) Revenue is primarily derived from sale of seeds to distributors, dealers and farmers.
Revenue is recognized only when risks and rewards incidental to ownership are transferred
to the customer, it can be reliably measured and it is reasonable to expect ultimate
collection. Revenue from operations includes sale of goods.

(ii) Sales return are accounted for / provided for in the year of return.

(iii) Interest and other income is accounted for on the basis of accrual.

(iv) Subsidy, Incentive is accounted for on cash/receipt basis.

X Research And Development Expenditure:

Revenue expenditure pertaining to research and cost of development of products is
charged to the Statement of Profit and Loss.

XI Foreign Currency Transactions:

i) Transactions in foreign currency are recorded at the rate prevailing on the date of the
transaction.

ii) Monetary assets and liabilities in foreign currency oufstanding as at the year-end are
stated at the rates of exchange prevailing at the close of the year. The resultant gains/losses
of the year are recognized in the Statement of Profit and Loss.

XII Taxation

(I) Income Tax

Provision for Current Tax is made and retained in the accounts on the basis of estimated tax
liability as per applicable provisions of Income Tax Act 1961.

(Ii) Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is probable that taxable profits will
be available against which those deductible temporary differences can be utilised. Such
deferred tax assets and liabilities are not recognised if the temporary difference arises from
the initial recognition (other than in a business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period
and reduced to the extent that it is no longer probable that sutficient taxable profits will be
available to allow all or part of the asset to be recovered

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset realised, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and deferred fax liabilifies are offset if a legally enforceable right exists
to set off current tax assets against current tax liabilities and the deferred taxes relate to the
same taxable entity and the same taxation authority.

(iii) Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future
economic benefits in the form of adjustment to future income tax liability, is considered as
an asset if there is convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable
that future economic benefit associated with it will flow to the Company.

(iv) Current and deferred tax for the period

Current and deferred tax are recognised in profit or loss, except when they relate to items
that are recognised in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognized in other comprehensive income or directly in
equity respectively. Where current tax or deferred tax arises from the initial accounting for
a business combination, the tax effect is included in the accounting for the business
combination.

The Company recognises interest levied and penalties related to Income Tax assessments
in the tax expanse.

XIII Investments

Non Current investments are stated at cost. Provision for diminution in the value of Non
Current investments is made only if such a decline is other than temporary.

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Mar 31, 2023

2.3 The company has held the EGM on 30th March, 2019 for passing the resolution for issuance of Bonus Shares in the ratio of 4:1, however, the allotment for such bonus shares are made on 26^th April, 2019 and in allotment of bonus shares 13 fractional shares are allotted in physical form.

2.4 12,13,598 Bonus shares were issued & allotted in the ratio 5:1 in accordance with the resolution passed at the EGM held on 1 st November 2021. The allotment of such shares were made on 7th December 2021. The company has issued 6 shares in physical form. Further, the fractional 5 bonus shares were issued to Mr. Jagdishbhai Ajudia, Managing Director of the company.

2.5 4,16,700 equity shares on preferential were issued in cash to four parties at a premium of Rs. 55 per shares as per the resolution passed at the EGM held on 01st November 2021. The same is allotted at the board meeting held on 21st March 2022. Since the share application money was received after due date, the company has conducted EGM on 25th May 2022 to ratify the Resolution passed at the EGM of 01st November 2021. The differential amount in respect of change in pricing of shares is received and the same is credited to "Security Premium Account" during the year.

2.6 The company had also issued & allotted 14,68,412 equity shares to two promoters against their credit balance with the Company as per the agreement entered into on 01st October 2021 with both the promoters and the approval resolution passed at the EGM held on 1 st November 2021. Since new pricing came as per the resolution passed in EGM held on 25th May 2022, the differential value of shares is received and the same has been credited to "Security Premium Account".

2.8 The Company has one class of equity shares having a par value of Rs. 10 per share. Equity shareholder is eligible for one vote per share held. They are eligible for dividend on the basis of their shareholding. In the case of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, if any, in proportion to their shareholding.

The company has provided equitable mortgage of the following land and building as security:

a. Office situated at 309, Shanti Mall, Satadhar Char Rasta, Ahmedabad

b. Industries Land and building including cold storage situated at survey number 57, 62 & 63 at Block

no 384, 380 and 379 respectively at Indira Nagar, Near Meshwo River Bank, Bardoli Kathi, Tehsil Dehgam, Gandhinagar, GJ.

c. Loans from Banks are personally guaranteed by two promoter- directors of the Company.

4.2 Vehicle Loans included in secured loan from banks are secured by hypothecation of respective vehicles. The repayments of loans are ranging between 36 months and 60 months.

4.3 Unsecured Loans form Banks and NBFCs are repayable ranging between 19 and 96 months.

9.1 The Company has dispatched letters to certain vendors to ascertain their status under the Micro, Small and Medium Enterprises Development Act, 2006. Based upon management estimation and confirmation received, the company has classified the trade payables as amount due to MSMEs. The outstanding balances of growers/farmers are also classified under MSMEs.

Certain accounts of Trade Receivable, Trade Payable, Unsecured Loans, Employees, Loans and Advances (including advances given to growers) are subject to confirmations and reconciliations, if any. The difference as may be noticed on reconciliation will be duly accounted for on completion thereof. In the opinion of the management, the ultimate difference will not be material.

In the opinion of the Board, Current and Non-current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of the business.

In order to garner additional sales and popularize the products of the Company among the retail farmers/ customers, the company has affected counter sales on cash basis for which requisite details of customers i.e. name, address, PAN, etc could not be made available to the auditors for their verification.

The company is producing and trading various grades/ varieties of seeds for which price range for purchase and production varies significantly. Consequently, the company is in the process of developing a stock accounting system by which cost of production and prices are ascertainable for each grade /varieties separately and accurately. Pending that the valuation of stock has been taken based upon the closing stock verified by the management at the year end and valued at an average rate of grade/varieties.

Contingent liabilities not provided for in respect of:-

1. Disputed demand of income tax of Rs. 93,62,629 relating to various assessment years.

2. Incom e tax (TD S) demand of Rs. 1,40,192.

Estimated value of contract remaining to be executed on capital account and not provided for in accounts.(Net of advance of Rs. 5,46,362) Rs. 23,89,500

Note:- This information has been given in respect of such vendors to the extent they could be identified as Micro and Small enterprises on the basis of information available with the Company.

The company is engaged in agriculture activities of production of seeds on lease hold land situated at various part of India.

The company has entered into agreements with various growers for cultivation and production of agricultural produce (Seeds) in view of the fact that the company itself is unable to carry on such activities which are spread over various parts of India. The company has reimbursed the cultivation expenses based upon the agreements entered into with the growers.

Expenditure related to and incurred during the implementation of the projects is included under Capital Work-in- Progress and the same are capitalized under the appropriate heads on completion of the projects.

The Company’s significant leasing arrangements are in respect of operating leases for agricultural land. These leasing arrangements which are in cancellable range and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent in the Statement of Profit and Loss.

The company is not fulfilling the criteria as specified in section 135 of the Companies Act, 2013 relating to the expenditure on Corporate Social Responsibility Activities, hence, the company has not incurred any expense during the year.

The company does not have assets/liabilities at the year end denominated in foreign currency which requires translation at the rates of exchange prevailing on the Balance Sheet date in accordance with Accounting Standard 11 - “The Effects of Changes in Foreign Exchange”.

Foreign Currency Transactions	31-03-2023	31-03-2022
FOB value of exports	Nil	Nil
CIF Value of Imports	Nil	Nil
Expenditure in Foreign	Nil	Nil
Currency

No Loans or Advances in the nature of loans are granted during the year to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

Details of Benami Property held - No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

The Company has made borrowings from banks on the basis of security of current assets and statements of current assets filed by the Company with banks are largely in agreement with the books of accounts with certain acceptable range of variation.

Wilful Defaulter - The company is not declared wilful defaulter by any bank or financial Institution or other lender during the year.

Relationship with Struck off Companies - During the year, the company has not carried out any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956,

Utilisation of Borrowed funds and share premium: The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Undisclosed income - There is no case of search, survey or any other case related to income surrendered or dis closed in any tax assessments under the Income Tax Act, 1961.

The company has not invested in Crypto Currency or Virtual Currency during the year.

Previous year''s figures have been regrouped and rearranged wherever necessary.