Accounting Policies of Associated Alcohols & Breweries Ltd. Company
Mar 31, 2018
1. ACCOUNTING POLICIES
A summary of the significant accounting policies applied in the preparation of the financial statements are as given below. These accounting policies have been applied consistently to all the periods presented in the financial statements.
1.1. INVENTORIES
Inventories are valued at the lower of cost and net realizable value (NRV). Cost is measured by including, unless specifically mentioned below, cost of purchase and other costs incurred in bringing the inventories to their present location and condition. However materials and other items held for use in the production of inventories are not written down beiow cost if the finished products in which they will be incorporated are expected to be sold at or above cost. NRV is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Cost is ascertained on weighted average basis for all inventories except for by products and scrap materials which are valued at net realizable value.
1.2. CASH AND CASH EQUIVALENTS
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short term deposits with an original maturity of three months or less, which are subject to an insignificant risk of change in value.
For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand, term deposits and other short-term highly liquid investments, net of bank overdrafts as they are considered an integral part of the Company''s cash management. Bank overdrafts are shown within short term borrowings in the balance sheet.
1.3. INCOME TAX
The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Current and deferred tax is recognized in the statement of profit & loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.
1.4. Current Tax:
Current tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the taxation authorities using the tax rates (and tax laws) that have been enacted or substantively enacted, at the end of the reporting period.
1.5. Deferred Tax
- Deferred Tax assets and liabilities is measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
- Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes (i.e., tax base). Deferred tax is also recognized for carry forward of unused tax losses and unused tax credits.
- Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
- The carrying amount of deferred tax assets is reviewed at the end of each reporting period. The Company reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or that entire deferred tax asset to be utilized. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be available.
- Deferred tax relating to items recognized outside the Statement of Profit and Loss is recognized either in other comprehensive income or in equity. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.
- Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
1.5. PROPERTY, PLANT AND EQUIPMENT
1.5.1. Tangible Assets
1.5.2. Recognition and Measurement:
- Property, plant and equipment held for use in the production or/and supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost, less any accumulated depreciation and accumulated impairment losses (if any), except for freehold land which are carried at historical cost.
- Cost of an item of property, plant and equipment acquired comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting any trade discounts and rebates, any directly attributable costs of bringing the assets to its working condition and location for its intended use and present value of any estimated cost of dismantling and removing the item and restoring the site on which it is located.
- If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.
- Profit or loss arising on the disposal of property, plant and equipment are recognized in the Statement of Profit and Loss.
1.5.3. Subsequent Measurement:
- Subsequent costs are included in the asset''s carrying amount, only when it is probable that future economic benefits associated with the cost incurred will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced.
- Major Inspection/ Repairs/ Overhauling expenses are recognized in the carrying amount of the item of property, plant and equipment as a replacement if the recognition criteria are satisfied. Any Unamortized part of the previously recognized expenses of similar nature is derecognized.
1.5.4 Depreciation and Amortization:
- Depreciation on Property, Plant & Equipment is provided on Straight Line Method in terms of life span of assets prescribed in Schedule II of the Companies Act, 2013 or as reassessed by the Company based on the technical evaluation.
- In case the cost of part of tangible asset is significant to the total cost of the assets and useful life of that part is different from the remaining useful life of the asset, depreciation has been provided on straight line method based on internal assessment and independent technical evaluation carried out by external valuers, which the management believes that the useful lives of the component best represent the period over which it expects to use those components.
- Depreciation on additions (disposals) during the year is provided on a pro-rata basis i.e., from (up to) the date on which asset is ready for use (disposed of).
- Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
1.5.6 Disposal of Assets
An item of property, plant and equipment is derecognized 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 net disposal proceeds and the carrying amount of the asset and is recognized in the statement of profit and loss.
1.5.7. Capital Work in Progress
Capital work-in-progress is stated at cost which includes expenses incurred during construction period, interest on amount borrowed for acquisition of qualifying assets and other expenses incurred in connection with project implementation in so far as such expenses relate to the period prior to the commencement of commercial production.
2.1. LEASES
2.2.. Determining whether an arrangement contains a lease
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
2.3 Company as lessor
- Finance Lease
Leases which effectively transfer to the lessee substantially all the risks and benefits incidental to ownership of the leased item are classified and accounted for as finance lease. Lease rental receipts are apportioned between the finance income and capital repayment based on the implicit rate of return. Contingent rents are recognized as revenue in the period in which they are earned.
- Operating Lease
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease except where scheduled increase in rent compensates the Company with expected inflationary costs.
2.4. Company as lessee
- Finance Lease
Finance Leases, which effectively transfer to the lessee substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease Payments under such leases are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly to the statement of profit and loss. Lease management fees, legal charges and other initial direct costs are capitalized.
If there is no reasonable certainty that the Company will obtain the ownership by the end of lease term, capitalized leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.
- Operating Lease
Assets acquired on leases where a significant portion of risk and reward is retained by the lessor are classified as operating leases. Lease rental are charged to statement of profit and loss on a straight-line basis over the lease term, except where scheduled increase in rent compensates the Company with expected inflationary costs.
2.5. REVENUE RECOGNITION
Revenue is recognized based to the extent it is probable that the economic benefit will flow to the company and revenue can be reliably measured regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment, and excludes taxes & duties collected on behalf of the Government and is reduced for estimated customer returns, rebates and other similar allowances.
2.5.1. Sale of Products:
The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and significant risk and reward incidental to sale of products is transferred to the buyer, usually on delivery of the goods. Accruals for sales return, chargebacks and other allowances are provided at the point of sale based on the past experience.
2.5.2. Revenue from tie-up manufacturing arrangements:
The company has entered into arrangement with Contract Manufacturing Unit (CMU), where-in CMU manufactures and sells on behalf of the Company. Accordingly, the transactions of the CMU under such arrangements have been recorded as gross revenue, excise duty and expenses as they were transactions of the Company.
2.5.3. Revenue from rendering of services:
Revenue from rendering of services is recognized on pro-rata basis over the period of contract and when the performance of agreed contractual task has been completed.
2.5.4. Other Income:
2.5.5. Interest Income: For all debt instruments measured either at amortized cost or at fair value through other comprehensive income (FVTOCI), interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset.
2.5.6. Dividend Income: Dividend income is accounted in the period in which the right to receive the same is established.
2.5.7. Other Income: Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably.
3. EMPLOYEE BENEFITS
3.1. Short Term Benefits
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period.
3.2 Other Long Term Employee Benefits
The liabilities for earned/privilege leave that are not expected to be settled wholly within twelve months are measured as the present value of the expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of related obligation. Remeasurements as the result of experience adjustment and changes in actuarial assumptions are recognized in statement of profit and loss.
3.3. Post-Employment Benefits
The Company operates the following post-employment schemes:
- Defined Contribution Plan
Defined contribution plans such as Provident Fund, Employee State Insurance etc. are charged to the statement of profit and loss as and when incurred and paid to Authority.
- Defined Benefit Plans
The liability or asset recognized in the Balance Sheet in respect of defined benefit 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 Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods. The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method.
The liability recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. The benefits are discounted using the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of related obligation.
Remeasurements of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling, are recognized in other comprehensive income. Remeasurements recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to the statement of profit and loss.
3.4 FOREIGN CURRENCY TRANSACTIONS
- Foreign currency (other than the functional currency) transactions are translated into the functional currency using the spot rates of exchanges at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchanges at the reporting date.
- Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities are generally recognized in profit or loss in the year in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those qualifying assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings, the balance is presented in the Statement of Profit and Loss within finance costs.
- Non-monetary items are not retranslated at period end and are measured at historical cost (translated using the exchange rate at the transaction date).
3.5. BORROWING COSTS
- Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings of funds. Borrowing costs also includes foreign exchange difference to the extent regarded as an adjustment to the borrowing costs.
- Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalized as a part of the cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its intended use or sale.
- Transaction costs in respect of long term borrowing are amortized over the tenure of respective loans using Effective Interest Rate (EIR) method. All other borrowing costs are recognized in the statement of profit and loss in the period in which they are incurred.
3.6. FINANCIAL INSTRUMENTS
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.
3.7. Financial Assets
- Recognition and Initial Measurement:
All financial assets are initially recognized when the company becomes a party to the contractual provisions of the instruments. A financial asset is initially measured at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
- Classification and Subsequent Measurement:
For purposes of subsequent measurement, financial assets are classified in four categories:,
- Measured at Amortized Cost;
- Measured at Fair Value Through Other Comprehensive Income (FVTOCI);
- Measured at Fair Value Through Profit or Loss (FVTPL); and
- Equity Instruments designated at Fair Value through Other Comprehensive Income (FVTOCI).
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.
- Measured at Amortized Cost: A debt instrument is measured at the amortized cost if both the following conditions are met:
- The asset is held within a business model whose objective is achieved by both collecting 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 (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the statement of profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade receivables, cash and bank balances, loans and other financial assets of the company.
- Measured at FVTOCI: A debt instrument is measured at the FVTOCI if both the following conditions are met:
- The objective of the business model is achieved by both collecting contractual cash flows and selling the financial assets; and
- The asset''s contractual cash flows represent SPPI.
Debt instruments meeting these criteria are measured initially at fair value plus transaction costs. They are subsequently measured at fair value with any gains or losses arising on remeasurement recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains or losses. Interest calculated using the effective interest method is recognized in the statement of profit and loss in investment income.
- Measured at FVTPL: FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. In addition, the company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the statement of profit and loss. Equity instruments which are, held for trading are classified as at FVTPL.
- Equity Instruments designated at FVTOCI: For equity instruments, which has not been classified as FVTPL as above, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable. In case the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment.
- Derecognition:
The Company derecognizes a financial asset on trade date only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
- Impairment of Financial Assets:
The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS - 109 requires expected credit losses to be measured through a loss allowance. The company recognizes impairment loss for trade receivables that do not constitute a financing transaction using expected credit loss model, which involves use of a provision matrix constructed on the basis of historical credit loss experience. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
3.8. Financial Liabilities
- Recognition and Initial Measurement:
Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and borrowings, payables or as derivatives, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
- Subsequent Measurement:
Financial liabilities are measured subsequently at amortized cost or FVTPL. A financial liability is classified as FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest rate method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.
- Financial Guarantee Contracts:
Financial guarantee contracts issued by the company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirement of Ind AS 109 and the amount recognized less cumulative amortization.
- Derecognition:
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
3.9. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the counterparty.
3.10. Earnings Per Share
Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders adjusted for the effects of potential equity shares by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.
3.11. Impairment of Non-Financial Assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value 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 lives of the assets. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (Cash Generating Units - CGU).
An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been an improvement in recoverable amount.
3.12. Provisions, Contingent Liabilities and Contingent Assets
3.12.1. Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.
3.12.2. Contingent Liabilities
Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed only 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 recognized because it is not possible that an outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses the existence of contingent liabilities in Other Notes to Financial Statements.
3.13.3. Contingent Assets
Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow of economic benefits is probable.
3.14. Intangible Assets
3.14.1. Recognition and Measurement
Intangible asset are stated at cost on initial recognition and subsequently measured at cost less accumulated amortization and accumulated impairment loss, if any.
3.14.2. Amortization
- Software''s are amortized over a period of three years.
- The amortization period and the amortization method are reviewed at [east at the end of each financial year. If the expected useful life of the assets is significantly different from previous estimates, the amortization period is changed accordingly.
3.15. Operating Segment
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker of the Company is responsible for allocating resources and assessing performance of the operating segments and accordingly is identified as the chief operating decision maker.
The Company has identified one reportable segment "Potable Alcoholâ based on the information reviewed by the CODM.
4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES
Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Information about Significant judgements and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:
- Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized. In addition, significant judgement is required in assessing the impact of any legal or economic limits.
- Classification of Leases: The Company enters into leasing arrangements for various assets. The classification of the [easing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.
- Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.
- Provisions and Contingencies: The assessments undertaken in recognising provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37, ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events is applied best judgement by management regarding the probability of exposure to potential loss.
- Impairment of Financial Assets: The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.
- Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.
- Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The input to these models are taken from observable markets where possible, but where this not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.
Mar 31, 2017
Notes forming part of the Balance Sheet as at 31st March, 2017 and Profit & Loss Account for the year ended on 31st March, 2017.
part - a Significant accounting policies
(a) Basis of Preparation of Financial Statements:
The company adopts the mercantile system of Accounting and recognizes, Income and expenditure on accrual basis except where stated specifically. The financial statements have been prepared by following a going concern approach and are in conformity with the statutory provisions, accounting standards issued by the Institute of Chartered Accountants of India and referred to Section 129 & 133 of the Companies Act, 2013 and the relevant provisions thereof and generally accepted practices prevailing in India except as otherwise stated.
(b) Fixed Assets :
Fixed assets are stated at cost inclusive of inward freight, duties, taxes, financial cost and other expenses up to putting the assets in use.
(c) investments:
Current investments are carried at lower of cost and quoted/fair value, computed category wise, Long Term Investments are stated at cost. Provisions for diminution in the value of the long-term investments is made only if such a decline is other than temporary.
(d) Inventories:
Inventories are valued at lower of cost or net realizable value except cost of work in progress, which is determined on absorption costing method.
(e) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Sale of Goods
Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Gross turnover includes excise duty on sales but does not include VAT and CST
Income from Services
Revenue from service contracts are recognized pro-rata over the period of the contract as and when services are rendered and are net of service tax.
Interest
Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend
Dividend is recognized when the shareholders'' right to receive payment is established by the Balance Sheet Date.
(f) Depreciation:
Depreciation has been provided on based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013, except in respect of some assets where useful life is different than those prescribed in Schedule II. Certificate from Chartered Engineer is taken in this respect. Leasehold land is being amortized over the period of lease.
(g) Employee Benefits:
(i) The company''s contribution to Provident Fund and Employees State Insurance Scheme are charged to profit & loss account.
(ii) Short-term employee benefits are recognized as an expense at the un-discounted amount in the profit and loss account of the year in which the related service is rendered.
(iii) Post employment and other long-term employee benefits including gratuity are recognized as an expense in the
profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques.
(iv) Encashment of leave is recognized and provided on yearly basis. There is accumulation of leave encashment and some are paid upon accumulation at year end of the accumulated leaves in excess of 90 days or upon cessation of employment.
(h) Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior years is reversed if there has been a change in the estimate of recoverable amount.
(i) Earning Per Share:
The earning considered in ascertaining the company''s earnings per share (EPS) comprise of the net profit after tax. The number of shares used in computing diluted EPS comprise of weighted average shares considered for deriving basic EPS and also the weighted average number of Equity Shares which could have been issued on the conversion of all dilutive potential Equity Shares.
(j) Foreign Currency Transaction:
(i) Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction.
(ii) Monetary items denominated in foreign currencies (such as cash, receivables, payables etc.) outstanding at the year end, are translated at exchange rates applicable as on that date.
(iii) Non-monetary items denominated in foreign currency, (such as fixed assets) are valued at transaction cost.
(iv) Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted for in the Profit and Loss Account.
(k) Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements. .
(l) Lease Assets
Leases where the less or effectively retain substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a Straight-line basis over the lease term. Lease income is recognized in the Profit and Loss Account on an accrual basis.
(m) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.
(n) Taxation:
i) Provision for Income Tax is determined in accordance with the provisions of Income Tax Act, 1961.
ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.
(0) export Benefits :
The benefits accrued (if any) under the Duty Draw Back Scheme as per the Export and Import Policy in respect of exports made under the said Scheme are recognized.
Mar 31, 2016
PART - A - SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation of Financial Statements:
The company adopts the mercantile system of Accounting and recognizes, Income and expenditure on accrual basis except where stated specifically. The financial statements have been prepared by following a going concern approach and are in conformity with the statutory provisions, accounting standards issued by the Institute of Chartered Accountants of India and referred to Section 129 & 133 of the Companies Act, 2013 and the relevant provisions thereof and generally accepted practices prevailing in India except as otherwise stated.
(b) Fixed Assets :
Fixed assets are stated at cost inclusive of inward freight, duties, taxes, financial cost and other expenses up to putting the assets in use.
(c) Investments:
Current investments are carried at lower of cost and quoted/fair value, computed category wise, Long Term Investments are stated at cost. Provisions for diminution in the value of the long-term investments is made only if such a decline is other than temporary.
(d) Inventories:
Inventories are valued at lower of cost or net realizable value except cost of work in progress, which is determined on absorption costing method.
(e) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Sale of Goods
Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Gross turnover includes excise duty on sales but does not include VAT and CST.
Income from Services
Revenue from service contracts are recognized pro-rata over the period of the contract as and when services are rendered and are net of service tax.
Interest
Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
Dividend
Dividend is recognized when the shareholders'' right to receive payment is established by the Balance Sheet Date.
(f) Depreciation:
Depreciation has been provided on based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013, except in respect of some assets where useful life is different than those prescribed in Schedule II. Certificate from Chartered Engineer is taken in this respect. Leasehold land is being amortized over the period of lease.
(g) Bottling Business:
The company is having arrangement for manufacturing of the products of certain brand owners on fixed charge basis. In view of state excise laws, these transactions have taken place in the name of the company and accordingly accounted for in the books of accounts of the company notwithstanding the risks and rewards being with respective brand owners.
(h) Employee Benefits:
(i) The company''s contribution to Provident Fund and Employees State Insurance Scheme are charged to profit & loss account.
(ii) Short-term employee benefits are recognized as an expense at the un-discounted amount in the profit and loss account of the year in which the related service is rendered.
(iii) Post employment and other long-term employee benefits including gratuity are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques.
(iv) Encashment of leave is recognized and provided on yearly basis. There is accumulation of leave encashment and some are paid upon accumulation at year end of the accumulated leaves in excess of 90 days or upon cessation of employment.
(i) Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior years is reversed if there has been a change in the estimate of recoverable amount.
(j) Earnings Per Share:
The earning considered in ascertaining the company''s earnings per share (EPS) comprise of the net profit after tax. The number of shares used in computing diluted EPS comprise of weighted average shares considered for deriving basic EPS and also the weighted average number of Equity Shares which could have been issued on the conversion of all dilutive potential Equity Shares.
(k) Foreign Currency Transaction:
(i) Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction.
(ii) Monetary items denominated in foreign currencies (such as cash, receivables, payables etc.) outstanding at the year end, are translated at exchange rates applicable as on that date.
(iii) Non-monetary items denominated in foreign currency, (such as fixed assets) are valued at transaction cost.
(iv) Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted for in the Profit and Loss Account.
(l) Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements. .
(m) Lease Assets:
Leases where the less or effectively retain substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a Straight-line basis over the lease term. Lease income is recognized in the Profit and Loss Account on an accrual basis.
(n) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.
(o) Taxation:
i) Provision for Income Tax is determined in accordance with the provisions of Income Tax Act, 1961.
ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.
(p) Export Benefits :
The benefits accrued (if any) under the Duty Draw Back Scheme as per the Export and Import Policy in respect of exports made under the said Scheme are recognized.
Mar 31, 2015
(a) .Basis of Preparation of Financial Statements:
The company adopts the mercantile system of Accounting and recognizes,
Income and expenditure on accrual basis except where stated
specifically. The financial statements have been prepared by following
a going concern approach and are in conformity with the statutory
provisions, accounting standards issued by the Institute of Chartered
Accountants of India and referred to Section 129 & 133 of the Companies
Act, 2013 and the relevant provisions thereof and generally accepted
practices prevailing in India except as otherwise stated.
(b) .Fixed Assets :
Fixed assets are stated at cost inclusive of inward freight, duties,
taxes, financial cost and other expenses up to putting the assets in
use.
(c) .Investments:
Current investments are carried at lower of cost and quoted/fair value,
computed category wise, Long Term Investments are stated at cost.
Provisions for diminution in the value of the long-term investments is
made only if such a decline is other than temporary.
(d) .Inventories:
Inventories are valued at lower of cost or net realizable value except
cost of work in progress, which is determined on absorption costing
method.
(e) .Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sale of Goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Gross turnover
includes excise duty on sales but does not include VAT and CST.
Income from Services
Revenue from service contracts are recognized pro-rata over the period
of the contract as and when services are rendered and are net of
service tax.
Interest
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividend
Dividend is recognized when the shareholders' right to receive payment
is established by the Balance Sheet Date.
(f) .Depreciation:
Depreciation has been provided on based on life assigned to each asset
in accordance with Schedule II of the Companies Act, 2013, except in
respect of some assets where useful life is different than those
prescribed in Schedule II. Certificate from Chartered Engineer is taken
in this respect. Leasehold land is being amortized over the period of
lease.
(g) .Bottling Business:
The company is having arrangement for manufacturing of the products of
certain brand owners on fixed charge basis. In view of state excise
laws, these transactions have taken place in the name of the company
and accordingly accounted for in the books of accounts of the company
notwithstanding the risks and rewards being with respective brand
owners.
(h). Employee Benefits:
(i) The company's contribution to Provident Fund and Employees State
Insurance Scheme are charged to profit & loss account.
(ii) Short-term employee benefits are recognized as an expense at the
un-discounted amount in the profit and loss account of the year in
which the related service is rendered.
(iii) Post employment and other long-term employee benefits are
recognized as an expense in the profit and loss account for the year in
which the employee has rendered services. The expense is recognized at
the present value of the amount payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long-term benefits are charged to the profit and
loss account.
(iv) Encashment of leave is recognized, provided and paid on yearly
basis. There is no accumulation of leave encashment.
(i) . Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognized in prior years is reversed if there has
been a change in the estimate of recoverable amount.
(j) . Earnings Per Share:
The earning considered in ascertaining the company's earnings per share
(EPS) comprise of the net profit after tax. The number of shares used
in computing diluted EPS comprise of weighted average shares considered
for deriving basic EPS and also the weighted average number of Equity
Shares which could have been issued on the conversion of all dilutive
potential Equity Shares.
(k) . Foreign Currency Transaction:
(i) Foreign currency transactions are recorded at the exchange rate
prevailing on the date of transaction.
(ii) Monetary items denominated in foreign currencies (such as cash,
receivables, payables etc.) outstanding at the year end, translated at
exchange rates applicable as on that date.
(iii) Non-monetary items denominated in foreign currency, (such as
fixed assets) are valued at transaction cost.
(iv) Any gains or losses arising due to exchange differences at the
time of translation or settlement are accounted for in the Profit and
Loss Account.
(l) . Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements. .
(m) . Lease Assets:
Leases where the lessor effectively retain substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Profit and Loss Account on a Straight- line basis over the lease
term. Lease income is recognized in the Profit and Loss Account on an
accrual basis.
(n) . Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
(o) . Taxation:
i) . Provision for Income Tax is determined in accordance with the
provisions of Income Tax Act, 1961.
ii) . Deferred tax for timing differences between tax profits and book
profits is accounted for using the tax rates and laws that
have been enacted or substantially enacted as of the Balance Sheet
date. Deferred tax assets are recognized to the extent there is
reasonable certainty that these assets can be realized in future.
(p) . Export Benefits :
The benefits accrued (if any) under the Duty Draw Back Scheme as per
the Export and Import Policy in respect of exports made under the said
Scheme are recognized.
Mar 31, 2014
(a) Basis of Preparation of Financial Statements:
The company adopts the mercantile system of Accounting and recognizes,
Income and expenditure on accrual basis except where stated
specifically. The financial statements have been prepared by following
a going concern approach and are in conformity with the statutory
provisions, accounting standards notified under Section 211 (3C) of the
Companies Act, 1956 and the relevant provisions thereof and generally
accepted practices prevailing in India except as otherwise stated.
(b) Fixed Assets :
Fixed assets are stated at cost inclusive of inward freight, duties,
taxes, financial cost and other expenses up to putting the assets in
use.
(c) Investments:
Current investments are carried at lower of cost and quoted/fair value,
computed category wise, Long Term Investments are stated at cost.
Provisions for diminution in the value of the long-term investments is
made only if such a decline is other than temporary.
(d) Inventories:
Inventories are valued at lower of cost or net realizable value except
cost of work in progress, which is determined on absorption costing
method.
(e) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sale of Goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Gross turnover
includes excise duty on sales but does not include VAT and CST.
Income from Services
Revenue from service contracts are recognized pro-rata over the period
of the contract as and when services are rendered and are net of
service tax.
Interest
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividend
Dividend is recognized when the shareholders'' right to receive payment
is established by the Balance Sheet Date.
(f) Depreciation:
Depreciation has been provided on straight-line method as per rates
prescribed under Schedule XIV to the Companies Act, 1956. Leasehold
land is being amortized over the period of lease.
(g) Bottling Business:
The company is having arrangement for manufacturing of the products of
certain brand owners on fixed charge basis. In view of state excise
laws, these transactions have taken place in the name of the company
and accordingly accounted for in the books of accounts of the company
notwithstanding the risks and rewards being with respective brand
owners.
(h) Employee Benefits:
(i) The company''s contribution to Provident Fund and Employees State
Insurance Scheme are charged to profit & loss account.
(ii) Short-term employee benefits are recognized as an expense at the
un-discounted amount in the profit and loss account of the year in
which the related service is rendered.
(iii) Post employment and other long-term employee benefits are
recognized as an expense in the profit and loss account for the year in
which the employee has rendered services. The expense is recognized at
the present value of the amount payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long-term benefits are charged to the profit and
loss account.
(iv) Encashment of leave is recognized, provided and paid on yearly
basis. There is no accumulation of the same except current year.
(I) Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognized in prior years is reversed if there has
been a change in the estimate of recoverable amount.
(j) Earning Per Share:
The earning considered in ascertaining the company''s earning per share
(EPS) comprise of the net profit after tax. The number of shares used
in computing diluted EPS comprise of weighted average shares considered
for deriving basic EPS and also the weighted average number of Equity
Shares which could have been issued on the conversion of all dilutive
potential Equity Shares.
(k) Foreign Currency T ransaction:
(I) Foreign currency transactions are recorded at the exchange rate
prevailing on the date of transaction.
(ii) Monetary items denominated in foreign currencies (such as cash,
receivables, payables etc.) outstanding at the year end, are translated
at exchange rates applicable as on that date.
(iii) Non-monetary items denominated in foreign currency, (such as
fixed assets) are valued at transaction cost.
(iv) Any gains or losses arising due to exchange differences at the
time of translation or settlement are accounted for in the Profit and
Loss Account.
(l) Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
(m) Lease Assets:
Leases where the lessor effectively retain substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Profit and Loss Account on a Straight-line basis over the lease
term. Lease income is recognized in the Profit and Loss Account on an
accrual basis.
(n) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
(o) Taxation:
i) Provision for Income Tax is determined in accordance with the
provisions of Income Tax Act, 1961.
ii) Deferred tax for timing differences between tax profits and book
profits is accounted for using the tax rates and laws that have been
enacted or substantially enacted as of the Balance Sheet date. Deferred
tax assets are recognized to the extent there is reasonable certainty
that these assets can be realized in future.
(p) Export Benefits :
The benefits accrued (if any) under the Duty Draw Back Scheme as per
the Export and Import Policy in respect of exports made under the said
Scheme are recognized.
Mar 31, 2013
(a) Basis of Preparation of Financial Statements:
The company adopts the mercantile system of Accounting and recognizes,
Income and expenditure on accrual basis except where stated
specifically. The financial statements have been prepared by following
a going concern approach and are in conformity with the statutory
provisions, accounting standards notified under Section 211 (3C) of the
Companies Act, 1956 and the relevant provisions thereof and generally
accepted practices prevailing in India except as otherwise stated.
(b) Fixed Assets:
Fixed assets are stated at cost inclusive of inward freight, duties,
taxes, financial cost and other expenses upto putting the assets in
use.
(c) Investments:
Current investments are carried at lower of cost and quoted/fair value,
computed category wise. Long Term Investments are stated at cost,
Provisions for diminution in the value of the long-term investments is
made only if such a decline is other than temporary.
(d) Inventories:
Inventories are valued at lower of cost or net realizable value except
cost of work in progress, which is determined on absorption costing
method.
(e) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sale of Goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Gross turnover
includes excise duty on sales but does not include Sales Tax and VAT
Income from Services
Revenue from service contracts are recognized pro-rata over the period
of the contract as and when services are rendered and are net of
service tax.
Interest
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividend
Dividend is recognized when the shareholders'' right to receive payment
is established by the Balance Sheet Date.
(f) Bottling Business:
The company is having arrangement for manufacturing of the products of
certain brand owners on fixed charge basis. In view of state excise
laws, these transactions have taken place in the name of the company,
and accordingly included in Balance Sheet and Profit & Loss account
notwithstanding the risks and rewards being with respective brand
owners.
(g) Depreciation:
Depreciation has been provided on straight-line method as per rates
prescribed under Schedule XIV to the Companies Act, 1956. Leasehold
land is amortized over the period of lease.
(h) Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recongnised in prior years is reversed if there has
been a change in the estimate of recoverable amount.
(I) Employee Benefits:
(i) The company''s contribution to Provident Fund and Employees State
Insurance Scheme are charged to profit & loss account.
(ii) Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
(iii) Post employment and other long-term employee benefits are
recognized as an expense in the profit and loss account for the year in
which the employee has rendered services. The expense is recognized at
the present value of the amount payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long-term benefits are charged to the profit and
loss account.
(iv) Encashment of leave is recognized, provided and paid on yearly
basis. There is no accumulation of the same except current year.
(j) Earning Per Share:
The earning considered in ascertaining the company''s earning per share
(EPS) comprise of the net profit after tax. The number of shares used
in computing diluted EPS comprise of weighted average shares considered
for deriving basic EPS and also the weighted average number of Equity
Shares which could have been issued on the conversion of all dilutive
potential Equity Shares.
(k) Prior Period Items:
Income and expenses, which arise in the current year as a result of
errors or omissions in the preparation of financial statements of one
or more prior periods, are stated as prior period adjustments in the
notes of Accounts.
(I) Foreign Currency Transaction:
(i) Foreign Currency transactions are recorded at the exchange rate
prevailing on the date of transaction.
(ii) Monetary items denominated in foreign currencies (such as cash
receivables, payables etc.) outstanding at the year end, are translated
at exchange rates applicable as on that date.
(iii) Non-Monetary items denominated in foreign currency, (such as
fixed assets) are valued at the exchange rate prevailing on the date of
transaction.
(iv) Any gains or losses arising due to exchange differences at the
time of translation or settlement are accounted for in the Profit and
Loss Account.
(m) Provision. Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
(n) Lease Assets:
Leases where the lessor effectively retain substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Profit and Loss Account on a Straight-line basis over the lease
term. Lease income is recognized in the Profit and Loss Account on an
accrual basis.
(o) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
(p) Export Benefits:
The benefits accrued (if any) under the Duty Draw Back Scheme as per
the Export and Import Policy in respect of exports made under the said
Scheme are recognized.
(q) Taxation:
(i) Provisions for Income Tax and Wealth Tax are determined in
accordance with the provisions of Income Tax Act, 1961 and Wealth Tax
Act, 1957, respectively.
(ii) Deferred tax for timing differences between tax profits and book
profits is accounted for using the tax rates and laws that have been
enacted or substantially enacted as of the Balance Sheet date. Deferred
tax assets are recognized to the extent there is reasonable certainty
that these assets can be realized in future.
Mar 31, 2012
(a) Basis of Preparation of Financial Statements:
The company adopts the mercantile system of Accounting and recognizes,
Income and expenditure on accrual basis except where stated
specifically. The financial statements have been prepared by following
a going concern approach and are in conformity with the statutory
provisions, accounting standards notified under Section 211 (3C) of the
Companies Act, 1956 and the relevant provisions thereof and generally
accepted practices prevailing in India except as otherwise stated.
(b) Fixed Assets:
Fixed assets are stated at cost inclusive of inward freight, duties,
taxes, financial cost and other expenses upto putting the assets in
use.
(c) Investments:
Current investments are carried at lower of cost and quoted/fair value,
computed category wise. Long Term Investments are stated at cost,
Provisions for diminution in the value of the long-term investments is
made only if such a decline is other than temporary.
(d) Inventories:
Inventories are valued at lower of cost or net realizable value except
cost of work in progress, which is determined on absorption costing
method.
(e) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sale of Goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Gross turnover
includes excise duty on sales but does not include Sales Tax and VAT.
Income from Services
Revenue from service contracts are recognized pro-rata over the period
of the contract as and when services are rendered and are net of
service tax.
Interest
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividend
Dividend is recognized when the shareholders' right to receive payment
is established by the Balance Sheet Date.
(f) Bottling Business:
The company is having arrangement for manufacturing of the products of
certain brand owners on fixed charge basis. In view of state excise
laws, these transactions have taken place in the name of the company,
and accordingly included in Balance Sheet and Profit & Loss account
notwithstanding the risks and rewards being with respective brand
owners.
(g) Depreciation:
Depreciation has been provided on straight-line method as per rates
prescribed under Schedule XIV to the Companies Act, 1956. Leasehold
land is amortized overthe period of lease.
(h) Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recongnised in prior years is reversed if there has
been a change in the estimate of recoverable amount.
(j) Employee Benefits:
(i) The company's contribution to Provident Fund and Employees State
Insurance Scheme are charged to profit & loss account.
(ii) Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
(iii) Post employment and other long-term employee benefits are
recognized as an expense in the profit and loss account for the year in
which the employee has rendered services. The expense is recognized at
the present value of the amount payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long-term benefits are charged to the profit and
loss account.
(iv) Encashment of leave is recognized, provided and paid on yearly
basis. There is no accumulation of the same except current year.
(J) Earning Per Share:
The earning considered in ascertaining the company's earning per share
(EPS) comprise of the net profit after tax. The number of shares used
in computing diluted EPS comprise of weighted average shares considered
for deriving basic EPS and also the weighted average number of Equity
Shares which could have been issued on the conversion of all dilutive
potential Equity Shares.
(k) Prior Period Items:
Income and expenses, which arise in the current year as a result of
errors or omissions in the preparation of financial statements of one
or more prior periods, are stated as prior period adjustments in the
notes of Accounts.
l) Foreign Currency Transaction:
(i) Foreign Currency transactions are recorded at the exchange rate
prevailing on the date of transaction.
(ii) Monetary items denominated in foreign currencies (such as cash
receivables, payables etc.) outstanding at the year end, are translated
at exchange rates applicable as on that date.
(iii) Non-Monetary items denominated in foreign currency, (such as
fixed assets) are valued at the exchange rate prevailing en the date of
transaction.
(iv) Any gains or losses arising due to exchange differences at the
time of translation or settlement are accounted for in the Profit and
Loss Account.
m) Provision, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
n) Lease Assets:
Leases where the lessor effectively retain substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Profit and Loss Account on a Straight-line basis over the lease
term. Lease income is recognized in the Profit and Loss Account on an
accrual basis.
o) Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
p) Export Benefits:
The benefits accrued (if any) under the Duty Draw Back Scheme as per
the Export and Import Policy in respect of exports made underthe said
Scheme are recognized.
q) Taxation:
(i) Provisions for Income Tax and Wealth Tax are determined in
accordance with the provisions of Income Tax Act, 1961 and Wealth Tax
Act, 1957, respectively.
(ii) Deferred tax for timing differences between tax profits and book
profits is accounted for using the tax rates and laws that have been
enacted or substantially enacted as of the Balance Sheet date. Deferred
tax assets are recognized to the extent there is reasonable certainty
that these assets can be realized in future.
Mar 31, 2011
(a) Basis of Preparation of Financial Statements:
The company adopts the mercantile system of Accounting and recognizes,
Income and expenditure on accrual basis except where stated
specifically. The financial statements have been prepared by following
a going concern approach and are in conformity with the statutory
provisions, accounting standards notified under Section 211 (3C) of the
Companies Act, 1956 and the relevant provisions thereof and generally
accepted practices prevailing in India except as otherwise stated.
(b) Fixed Assets:
Fixed assets are stated at cost inclusive of inward freight, duties,
taxes, financial cost and other expenses upto putting the assets in
use.
(c) Investments:
Current investments are carried at lower of cost and quoted/fair value,
computed category wise. Long Term Investments are stated at cost,
Provisions for diminution in the value of the long-term investments is
made only if such a decline is other than temporary.
(d) Inventories:
Inventories are valued at lower of cost or net realizable value except
cost of work in progress, which is determined on absorption costing
method.
(e) Loans:
Loans are stated inclusive of interest accrued thereon.
(f) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sale of Goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Gross turnover
includes Excise Duty on sales but does not include Sales Tax and VAT.
Income from Services
Revenue from service contracts are recognized pro-rata over the period
of the contract as and when services are rendered and are net of
service tax.
Interest
Interest is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividend
Dividend is recognized when the shareholders' right to receive payment
is established by the Balance Sheet Date.
(g) Bottling Business:
The company is having arrangement for manufacturing of the products of
certain brand owners on fixed charge basis. In view of state excise
laws, these transactions have taken place in the name of the company,
and accordingly included in Balance Sheet and Profit & Loss account
notwithstanding the risks and rewards being with respective brand
owners.
(h) Depreciation:
Depreciation has been provided on straight-line method as per rates
prescribed under Schedule XIV to the Companies Act, 1956. Leasehold
land is amortized over the period of lease.
(i) Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recongnised in prior years is reversed if there has
been a change in the estimate of recoverable amount.
(j) Employee Benefits:
(i) The company's contribution to Provident Fund and Employees State
Insurance Scheme are charged to profit & loss account.
(ii) Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
(iii) Post employment and other long-term employee benefits are
recognized as an expense in the profit and loss account for the year in
which the employee has rendered services. The expense is recognized at
the present value of the amount payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long-term benefits are charged to the profit and
loss account.
(iv) Encashment of leave is recognized, provided and paid on yearly
basis. There is no accumulation of the same except current year.
(k) Earning Per Share:
The earning considered in ascertaining the company's earning per share
(EPS) comprise of the net profit after tax. The number of shares used
in computing diluted EPS comprise of weighted average shares considered
for deriving basic EPS and also the weighted average number of Equity
Shares which could have been issued on the conversion of all dilutive
potential Equity Shares.
(I) Prior Period Items:
Income and expenses, which arise in the current year as a result of
errors or omissions in the preparation of financial statements of one
or more prior periods, are stated as prior period adjustments in the
notes of Accounts.
(m) Foreign Currency Transartion:
(i) Foreign Currency transactions arc recorded at the exchange rate
prevailing on the date of transaction.
(ii) Monetary items denominated in foreign currencies (such as cash
receivables, payables etc.) outstanding at the year end, are translated
at exchange rates applicable as on that date.
(iii) Non-Monetary items denominated in foreign currency, (such as
fixed assets) are valued at the exchange rate prevailing on the date of
transaction.
(iv) Any gains or losses arising due to exchange differences at the
time of translation or settlement are accounted for in the Profit and
Loss Account.
(n) Provision. Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
(o) Lease Ass is:
Leases where the lessor effectively retain substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Profit and Loss Account on a Straight-line basis over the lease
term. Lease Income is recognized in the Profit and Loss Account on an
accrual basis.
(p) Borrowing Costs;
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
(q) Export Benefits:
The benefits accrued under the Duty Draw Back Scheme as per the Export
and Import Policy in respect of exports made under the said Scheme are
recognized under the head "Other Income from Operations".
(r) Taxation:
(i) Current Tax : Provisions for Income Tax and Wealth Tax are
determined in accordance with the provisions of Income Tax Act, 1961
and Wealth Tax Act, 1957, respectively.
(ii) Deferred tax for timing differences between tax profits and book
profits is accounted for using the tax rates and laws that have been
enacted or substantially enacted as of the Balance Sheet date. Deferred
tax assets are recognized to the extent there is reasonable certainty
that these assets can be realized in future.
Mar 31, 2010
(a) Basis of Preparation of Financial Statements:
The company adopts the mercantile system of Accounting and recognizes,
Income and expenditure on accrual basis except where stated
specifically. The financial statements have been prepared by following
a going concern approach and are in conformity with the statutory
provisions, accounting standards and generally accepted practices
prevailing in India except as otherwise stated.
(b) Fixed Assets:
Fixed assets are stated at cost inclusive of inward freight, duties,
taxes, financial cost and other expenses upto putting the assets in
use.
(c) Investments:
Current investments are carried at lower of cost and quoted/fair value,
computed category wise, Long Term Investments are stated at cost,
Provisions for diminution in the value of the long-term investments is
made only if such a decline is other than temporary.
(d) Inventories:
Inventories are valued at lower of cost or net realizable value except
cost of work in progress, which is determined on absorption costing
method.
(e) Loans:
Loans are stated inclusive of interest accrued thereon.
(f) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sale of Goods
Revenue is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer. Gross turnover
includes Excise Duty but does not include Sales Tax and VAT.
Income from Services
Revenue from service contracts are recognized pro-rata over the period
of the contract as and when services are rendered and are net of
service tax.
Interest
Revenue is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Dividend
Revenue is recognized when the shareholders right to receive payment
is established by the Balance Sheet Date.
(g) Bottling Business:
The company is having arrangement for manufacturing of the products of
certain brand owners on fixed charge basis. In view of state excise
laws, these transactions have been taken place in the name of the
company, and accordingly included in Balance Sheet and Profit & Loss
account notwithstanding the risks and rewards being with respective
brand owners.
(h) DEPRECIATION:
Depreciation has been provided on straight-line method as per rates
prescribed under Schedule XIV to the Companies Act, 1956. Leasehold
land is amortized over the period of lease.
(i) IMPAIRMENT OF ASSETS :
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year which an asset is identified as impaired. The
impairment loss recongnised in prior accounting is reversed if there
has been a change in the estimate of recoverable amount.
(j) EMPLOYEE BENEFITS:
(i) The companys contribution to Provident Fund and Employees State
Insurance Scheme are charged to profit & loss account.
(ii) Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
(iii) Post employment and other long-term employee benefits are
recognized as an expense in the profit and loss account for the year in
which the employee has rendered services. The expense is recognized at
the present value of the amount payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long- term benefits are charged to the profit and
loss account.
(iv) Encashment of leave is recognized, provided and paid on yearly
basis. There is no accumulation of the same except current year.
(k) EARNING PER SHARE:
The earning considered in ascertaining the companys earning per share
(EPS) comprise of the net profit after tax. The number of shares used
in computing diluted EPS comprise of weighted average shares considered
for deriving basis EPS and also the weighted average number of Equity
Shares which could have been issued on the conversion of all dilutive
potential Equity Shares.
(l) PRIOR PERIOD ITEMS:
Income and expenses, which arise in the current year as a result of
errors or omissions in the preparation of financial statements of one
or more prior periods, are shown as prior period adjustments.
(m) FOREIGN CURRENCY TRANSACTION:
(i) Foreign Currency transactions are recorded at the exchange rate
prevailing on the date of transaction.
(ii) Monetary items denominated in foreign currencies (such as cash,
receivables, payables etc.) outstanding at the year end, are translated
at exchange rates applicable as on that date.
(iii) Non-Monetary items denominated in foreign currency, (such as
fixed assets) are valued at the exchange rate prevailing on the date of
transaction.
(iv) Any gains or losses arising due to exchange differences at the
time of translation or settlement are accounted for in the Profit and
Loss Account.
(n) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
(o) BORROWING COSTS:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
(p) TAXATION:
(i) Current Tax : Provisions for Income Tax and Wealth Tax are is
determined in accordance with the provisions of Income-tax Act, 1961
and Wealth Tax Act, 1957, respectively.
(ii) Deferred tax for timing differences between tax profits and book
profits is accounted for using the tax rates and laws that have been
enacted or substantially enacted as of the Balance Sheet date. Deferred
tax assets are recognized to the extent there is reasonable certainty
that these assets can be realized in future.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Associated Alcohols & Breweries Ltd.
-
Associated Alcohols & Breweries Ltd. Tools
- Bulk Deals
-
Associated Alcohols & Breweries Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- Bonus
- BSE Price History
- NSE Price History
-
Associated Alcohols & Breweries Ltd. Key Financial Ratios
- Ratios
-
Associated Alcohols & Breweries Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Associated Alcohols & Breweries Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Associated Alcohols & Breweries Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Associated Alcohols & Breweries Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
