Home  »  Company  »  Bannari Amman Su  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Bannari Amman Sugars Ltd. Company

Mar 31, 2015

1.1 The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014 The financial statements have been prepared on going concern basis under the historical cost convention The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year

1.2 Fixed Assets : The Fixed Assets are carried at Cost less accumulated depreciation and impairment losses if any Cost includes related taxes duties freight insurance etc attributable to acquisition and installation of assets and borrowing cost incurred up to the date of commencing operations but excludes duties and taxes that are recoverable from taxing authorities Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset be yond its previously assessed standard of performance Assets which are not ready for their intended use and other capital work in progress are carried at cost comprising direct cost related incidental expenses and attributable interest

1.3 Long Term Investments: Investments are accounted at cost The diminution in the market value of long term investments is recognized when diminution is considered permanent

1.4 Depreciation : Straight line method has been adopted for providing depreciation on fixed assets over the useful life of the assets prescribed under Schedule II to the Companies Act 2013 other than for Co-Generation Division and Wind Mill Division For the assets of Co-Generation division and Wind Mill Division depreciation has been provided under written down value method For additions and deletions depreciation is provided from/to the date of addition/deletion on pro-rata basis Depreciation on asset additions costing Rs 5000/- or less is provided at the rate of 100% in the year of capitalisation

1.5 Valuation of Inventory :

i) Finished Goods

Sugar Granite Blocks Polished Granite slabs and tiles Molasses At weighted average cost or Net Bagasse Realisable value whichever is lower Industrial Alcohol Fusel Oil Bio-compost

Sawn Granite slabs and process stock - At cost or net realisable value whichever is lower

Raw material consumables stores & At weighted average cost or Net spares and others Realisable value whichever is lower

ii) The cost for the finished goods and process stock is inclusive of cost of purchase cost of conversion Excise duty cess if any and other costs incurred in bringing the inventories to their present location and condition

1.6 Revenue Recognition: All Income and Expenses are accounted on accrual basis in line with Accounting Standard 9 (AS-9) The turnover is accounted without considering inter-division transfers for own consumption

1.7 Foreign Currency transactions : Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction Foreign currency monetary items as at the balance sheet date are reported using the closing rate or at the rate that is likely to be realised from/required to be disbursed The gain or loss due to increase or decrease in value of reporting currency due to fluctuations in rates of exchange are recognized in the statement of profit and loss

1.8 Provision Contingent liabilities & Contingent assets : Provision is recognised only when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources Contingent liabilities are not recognised but are shown by way of notes Contingent assets are neither recognised nor disclosed in the financial statements

1.9 Impairment of assets: Impairment of assets are assessed as at the close of each financial year and appropriate provision if any are recognised and given effect to the Accounts

1.10 Taxation: Current tax is determined at the current rates of Income Tax on taxable income and tax credits are computed in accordance with the provisions of the Income Tax Act 1961 Minimum Alternate Tax (MAT) paid in accordance with the tax laws which give future economic benefit 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 probable that future economic benefit associated with it will flow to the Company

1. 11 Deferred Tax: Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws that have been substantially enacted as at the balance sheet date The deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that these would be realized in future

1.12 Government grants: Government grants are recognized based on the reasonable assurance that the Company will comply with the condition attached to the grants and the grants will be received Government grant in the nature of revenue has been recognized on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same

1.13 Segment reporting: The segment reporting is in line with the accounting policies of the Company Inter segment transactions have been accounted for based on the price which has been arrived at considering cost and market price Revenue and expenses that are directly identifiable with or allocable to segments are considered for determining the segment results Segment assets and liabilities include those directly identifiable with the respective segments Business segments are identified on the basis of the nature of products the risk/return profile of individual business the organizational structure and the internal reporting system of the Company

1.14 Leases: The Company's significant leasing arrangements are operating leases and cancelable in nature. The lease rentals paid/received under such agreements are accounted in the statement of profit and loss

1.15 Employee benefits : Provident Fund Employees State Insurance are defined contribution schemes and contributions are charged to statement of profit and loss of the year in which the contributions to the respective funds are due The Company has opted for LIC group gratuity scheme which is a defined benefit scheme For calculating gratuity liability the premium ascertained by LIC has been taken into account Long term accumulated absences are provided based on the actuarial valuation

1.16 Excise duty : The Excise Duty on sale of finished goods is deducted from turnover to arrive at net sales as shown in the statement of profit and loss The Excise Duty appearing in the statement of profit and loss as an expenditure represents excise duty provision for difference between opening and closing stock of finished goods

1.17 Cash Flow Statement : Cash flows are reported using the indirect method whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non cash nature and any difference are accruals of past or future cash receipts or payments The cash flows from operating investing and financing activities of the company are segregated based on the available information

1. 18 Borrowing Cost : Borrowing cost which are directly attributable to the construction of qualifying assets are capitalised as a part of the cost of the asset


Mar 31, 2014

1.1 The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act 1956 (which continue to the applicable in respect of Section 133 of the Companies Act 2013 in the terms of General Circular 15/2013 dated 13.9.2013 of the Ministry of Corporate Affairs and the relevant provisions of the Companies Act 1956 The financial statements have been prepared on accrual and going concern basis under the historical cost convention The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year

1.2 Fixed Assets : The Fixed Assets are carried at Cost less accumulated depreciation and impairment losses if any Cost includes related taxes duties freight insurance etc attributable to acquisition and installation of assets and borrowing cost incurred up to the date of commencing operations but excludes duties and taxes that are recoverable from taxing authorities Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance Assets which are not ready for their intended use and other capital work in progress are carried at cost comprising direct cost related incidental expenses and attributable interest

1.3 Long Term Investments: Investments are accounted at cost The diminution in the market value of long term investments is recognized when diminution is considered permanent

1.4 Depreciation : Straight line method has been adopted for providing depreciation on fixed assets as per the rates prescribed in Schedule XIV to the Companies Act 1956 other than for Co-Generation Division and Wind Mill Division For the assets of Co-Generation division and Wind Mill Division depreciation has been provided under written down value method as per the rates prescribed in Schedule XIV to the Companies Act 1956 For additions and deletions depreciation is provided from/to the date of addition/deletion on pro-rata basis Depreciation on asset additions costing Rs 5000/- or less is provided at the rate of 100% in the year of capitalisation

1.5 Valuation of Inventory :

(I) Finished Goods Sugar Granite Blocks

Polished Granite slabs and tiles

Molasses At weighted average cost or Net

Bagasse Realisable value whichever is lower

Industrial Alcohol

Fusel Oil

Bio-compost -I

Sawn Granite slabs and process stock - At cost or net realisable value whichever is lower

-I At weighted average cost or Net Raw material consumables stores & spares and others J Realisable value whichever is lower

(II) The cost for the finished goods and process stock is inclusive of cost of purchase cost of conversion Excise duty cess if

any and other costs incurred in bringing the inventories to their present location and condition

1.6 Revenue Recognition: All Income and Expenses are accounted on accrual basis in line with Accounting Standard 9 (AS 9) The turnover is accounted without considering inter-division transfers for own consumption

1.7 Foreign Currency transactions : Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction Foreign currency monetary items as at the balance sheet date are reported using the closing rate or at the rate that is likely to be realised from / required to disburse The gain or loss due to increase or decrease in value of reporting currency due to fluctuations in rates of exchange are recognized in the statement of profit and loss

1.8 Provision Contingent liabilities & Contingent assets : Provision is recognised only when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources Contingent liabilities are not recognised but are shown by way of notes Contingent assets are neither recognised nor disclosed in the financial statements

1.9 Impairment of assets: Impairment of assets are assessed as at the close of each financial year and appropriate provision if any are recognised and given effect to the accounts

1.10 Taxation: Current tax is determined at the current rates of Income Tax on taxable income and tax credits are computed in accordance with the provisions of the Income Tax Act 1961 Minimum Alternate Tax (MAT) paid in accordance with the tax laws which give future economic benefit 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 recogonised as an asset in the balance sheet when it is probable that future economic benefit associated with it will flow to the company

1. 11 Deferred Tax: Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws that have been substantially enacted as at the balance sheet date The deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that these would be realized in future

1.12 Government grants: Government grants are recognized based on the reasonable assurance that the Company will comply with the condition attached to the grants and the grants will be received Government grant in the nature of revenue has been recognized on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same

1.13 Segment reporting: The segment reporting is in line with the accounting policies of the Company Inter segment transactions have been accounted for based on the price which has been arrived at considering cost and market price Revenue and expenses that are directly identifiable with or allocable to segments are considered for determining the segment results Segment assets and liabilities include those directly identifiable with the respective segments Business segments are identified on the basis of the nature of products the risk/return profile of individual business the organizational structure and the internal reporting system of the Company

1.14 Leases: The Company''s significant leasing arrangements are operating leases and cancellable in nature The lease rentals paid/received under such agreements are accounted in the statement of profit and loss

1.15 Employee benefits : Provident Fund Employees State Insurance and Gratuity are defined contribution schemes and contributions are charged to statement of profit and loss of the year in which the contributions to the respective funds are due The Company has opted for LIC group gratuity scheme For calculating gratuity liability the premium ascertained by LIC has been taken into account Long term accumulated absences are provided based on the actuarian valuation

1.16 Excise duty : The Excise Duty on sale of finished goods is deducted from turnover to arrive at net sales as shown in the statement of profit and loss The Excise Duty appearing in the statement of profit and loss as an expenditure represents excise duty provision for difference between opening and closing stock of finished goods

1.17 Cash Flow Statement : Cash flows are reported using the indirect method whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non cash nature and any difference are accruals of past or future cash receipts or payments The cash flows from operating investing and financing activities of the company are segregated based on the available information

1. 18 Borrowing Cost : Borrowing cost which are directly attributable to the construction of qualifying assets are capitalised as a part of the cost of the asset

c. Terms / rights attached to equity shares

The company has issued only one class of equity shares having face value of Rs10/- each One equity share carries one vote The members are entitled to vote in accordance with their shareholding The Company declares and pays dividend in Indian rupees The dividend recommended by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting

4.1 Rupee term loan of Rs 1400 lakhs (Rs 2800 lakhs) from Axis Bank Ltd is secured by pari passu charge on the movable

plant and machinery and pari passu second charge on the current assets of the Co-generation Plant at Sugar Unit IV The loan is further secured by mortgage on lands admeasuring 50.93 acres and buildings thereon pertaining to the Co-generation Plant at Sugar Unit IV

The loan carries interest at the rate of Bank''s Base rate plus 1.50% and repayable in 20 equal quarterly instalments of Rs 350 lakhs each starting from June 2010

The loan amount repayable within twelve months is Rs 1400 lakhs (Rs1400 lakhs) is grouped under other Current Liabilities

4.2 Rupee term loan of Rs 6800 lakhs (Nil) from HDFC Bank Ltd is secured by pari passu first charge on the movable plant and machinery of the Sugar and Co-generation Plant at Sugar Unit III

The loan carries interest at the rate of Bank''s Base rate plus 1% and repayable in 20 equal quarterly instalments starting from October 2015

4.3 Rupee term loan of Rs 7100 lakhs (Nil) from State Bank of India is secured by pari passu first change on the movable plant and machinery of the Sugar and Co-generation Plant at Sugar Unit III

The loan carries interest at the rate of Bank''s Base rate plus 1% and repayable in 20 equal quarterly instalments of starting from March 2015

The loan amount repayable within twelve months is Rs 400 lakhs (Nil) is grouped under Other Current Liabilities

4.4 Rupee term loan of Rs 2000 lakhs (Nil) from The Federal Bank Ltd is secured by pari passu first charge on the movable plant and machinery of the Sugar and Co-generation Plant at Sugar Unit III

The loan carries interest at the rate of Bank''s base rate plus 0.45% and repayable in 20 equal quarterly installments starting from October 2015

4.5 Loan from Sugar Development Fund (Government of India) availed for modernisation/expansion of Sugar Unit I amounting to Rs 155.08 Lakhs (Rs 465.23 Lakhs) is secured by way of exclusive second charge on the movable and immovable properties of Sugar Unit I

The loan carries interest at the rate of 2% below the bank rate prevailing on the date of disbursement Repayment of principal and payment of interest thereon commenced after a period of 8 years from the date of disbursement and in five equal annual instalments The loan was disbursed during the financial year 2002

The loan amount repayable within twelve months is Rs 155.08 lakhs (Rs 310.16 lakhs) which is grouped under other current Liabilities

4.6 Loan from Sugar Development Fund (Government of India) availed for setting up of co-generation plant in Sugar Unit IV amounting to Rs 2403.48 lakhs (Rs 2403.48 lakhs) is secured by way of first charge on the movable and immovable properties of Sugar Unit IV and first pari passu charge on the movable and immovable properties of co-generation plant in Sugar Unit IV

The loan carries interest at the rate of 2% below the bank rate prevailing on the date of disbursement Repayment of principal commenced after the expiry of three years and in ten equal half yearly instalments The interest on the loan shall be paid half-yearly from the date of disbursement The Loan was disbursed during the financial year 2013

4.7 Loan from Sugar Development Fund (Government of India) availed for implementation of the schemes aimed at development of sugar cane in the factory area of Sugar Unit II amounting to Rs 540 lakhs (Rs 270 lakhs) is secured by way of exclusive second charge on the movable and immovable properties of Sugar Unit II

The loan carries interest at the rate of 2% below the bank rate prevailing on the date of disbursement Repayment of principal commenced after the expiry of three years and in four equal annual installments The interest on the loan shall be paid annually from the date of disbursement The loan was disbursed during the financial year 2013 and 2014

4.8 Loan of Rs 5811.58 lakhs (Rs 38.83 lakhs) under SEFASU notified by Government of India availed from Punjab National Bank The HDFC Bank Ltd and Indian Overseas Bank is to be secured by residual third charge on all fixed assets forming part of block assets and land and buildings of Sugar Units I, II, III and IV

The loan carries interest subvention at the rate of 12% per annum and is repayable in 36 equal monthly instalments after the expiry of 2 years from the date of disbursement

8.1 Cash Credit and other Working Capital Limits/ Demand Loan sanctioned by Punjab National Bank consortium consists of Punjab National Bank Bank of Baroda Canara Bank The Federal Bank Limited The Karur Vysya Bank Limited Union Bank of India Indian Overseas Bank State Bank of Travancore State Bank of India State Bank of Hyderabad Bank of India Axis Bank Limited ICICI Bank Limited and HDFC Bank Limited to the Company''s Sugar Units are secured by way of hypothecation of current assets and other movable block assets of the Sugar Units and third mortgage on the immovable properties of the Sugar Units

The credit limits availed as at 31.3.2014 is Rs 48967.42 lakhs (Rs 29642.38 lakhs)

The availed limits are repayable on demand and carries interest rates between Bank''s base rate plus 0.25% and 1% per annum

8.2 Packing Credit Limit and other working capital limits sanctioned by Punjab National Bank and State Bank of India to Granite Division are secured by way of hypothecation of current assets and second mortgage on other movable and immovable properties of Granite Division

The credit limits availed as at 31.3.2014 is Rs 500.00 lakhs (Rs Nil)

The credit limits availed are repayable on demand and carries interest ranges between Bank''s Base Rate plus 0.25% and 1.50% per annum

8.3 Cash Credit Limits sanctioned by Canara Bank and The Lakshmi Vilas Bank Ltd to Distillery Unit in Tamilnadu are secured by way of Hypothecation of current assets and second charge on other movable and immovable properties of the Distillery Unit in Tamilnadu

The credit limits availed as at 31.3.2014 is Rs 148.28 lakhs (Rs 119.70 lakhs)

The cash credit limits are repayable on demand and carries interest ranges between Bank''s base rate plus 0.50% and 2.75% per annum

8.4 The Unsecured Short term loan of Rs 5000 lakhs (Rs 2000 lakhs) from ING Vysya Bank is repayable within six months from the date of availment and carries interest at the rate of 10.80% per annum

The Unsecured Short term loan of Rs 2000 lakhs (Rs 5000 lakhs) from HDFC Bank Ltd is repayable within ninety days from the date of availment and carries interest at the rate of 10.20% per annum

The Unsecured Short term loan of Rs 9000 lakhs from HDFC Bank Ltd is repayable within ninety days from the date of availment and carries interest at the rate of 10.50% per annum

The Unsecured Export Credit of Rs 5000 lakhs from HDFC Bank Ltd is repayable within sixty days from the date of availment and carries interest at the rate of 10% per annum

The Unsecured Working Capital Demand loan of Rs 5000 lakhs from Rabo Bank International is repayable within fifty seven days from the date of availment and carries interest at the rate of 10.35% per annum

The Unsecured Short term loan of Rs 2500 lakhs from Canara Bank is repayable in four equal monthly instalment starting from May'' 2014 and carries interest at the Banks Base rate plus 0.50% per annum

The vendors of the Company are yet to submit their status under Micro Small and Medium Enterprises hence the relevant information is not available with the company Accordingly no disclosures relating to Micro Small and Medium Enterprises have been made in the Accounts


Mar 31, 2013

1.1 The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act 1956 The financial statements have been prepared on going concern basis under the historical cost convention The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year

1.2 Fixed Assets : The Fixed Assets are carried at Cost less accumulated depreciation and impairment losses if any Cost includes related taxes duties freight insurance etc attributable to acquisition and installation of assets and borrowing cost incurred up to the date of commencing operations but excludes duties and taxes that are recoverable from taxing authorities Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance Assets which are not ready for their intended use and other capital work in progress are carried at cost comprising direct cost related incidental expenses and attributable interest

1.3 Long Term Investments: Investments are accounted at cost The diminution in the market value of long term investments is recognized when diminution is considered permanent

1.4 Depreciation : Straight line method has been adopted for providing depreciation on fixed assets as per the rates prescribed in Schedule XIV to the Companies Act 1956 other than for Co-Generation Division and Wind Mill Division For the assets of Co-Generation division and Wind Mill Division depreciation has been provided under written down value method as per the rates prescribed in Schedule XIV to the Companies Act 1956 For additions and deletions depreciation is provided from/to the date of addition/deletion on pro-rata basis Depreciation on asset additions costing Rs.5000/- or less is provided at the rate of 100% in the year of capitalisation

1.5 Valuation of Inventory :

(I) Finished Goods

Sugar

Granite Blocks

Polished Granite slabs and tiles

Masses

Bagasse

Industrial Alcohol Fusel Oil

Bio-compost

At weighted average cost or Net Realisable value whichever is lower

Sawn Granite slabs and process stock

Raw material consumables stores & spares and others

At cost or net realisable value whichever is lower At weighted average cost or Net Realisable value whichever is lower

(II) The cost for the finished goods and process stock is inclusive of cost of purchase cost of conversion Excise duty cess if any and other costs incurred in bringing the inventories to their present location and condition

1.6 Revenue Recognition: All Income and Expenses are accounted on accrual basis The turnover is accounted without considering inter-division transfers for own consumption

1.7 Foreign Currency transactions : Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction Foreign currency monetary items as at the balance sheet date are reported using the closing rate or at the rate that is likely to be realised from / required to disburse The gain or loss due to increase or decrease in value of reporting currency due to fluctuations in rates of exchange are recognized in the statement of profit and loss

1.8 Provision, Contingent liabilities & Contingent assets : Provision is recognised only when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources Contingent liabilities are not recognised but are shown by way of notes Contingent assets are neither recognised nor disclosed in the financial statements

1.9 Impairment of assets: Impairment of assets are assessed as at the close of each financial year and appropriate provision if any are recognised and given effect to the accounts

1.10 Taxation: Current tax is determined at the current accordance with the provisions of the Income Tax Act 1961 Minimum Alternate Tax (MAT) paid in accordance with the tax laws which give future economic benefit in the form of adjusment 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 recogonised as an asset in the balance sheet when it is probable that future economic benefit associated with it will flow to the company

1. 11 Deferred Tax: Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws that have been substantially enacted as at the balance sheet date The deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that these would be realized in future

1.12 Government grants: Government grants are recognized based on the reasonable assurance that the Company will comply with the condition attached to the grants and the grants will be received Government grant in the nature of revenue has been recognized on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same

1.13 Segment reporting: The segment reporting is in line with the accounting policies of the Company Inter segment transactions have been accounted for based on the price which has been arrived at considering cost and market price Revenue and expenses that are directly identifiable with or allocable to segments are considered for determining the segment results Segment assets and liabilities include those directly identifiable with the respective segments Business segments are identified on the basis of the nature of products the risk/return profile of individual business the organizational structure and the internal reporting system of the Company

1.14 Leases: The Company''s significant leasing arrangements are operating leases and cancellable in nature The lease rentals paid/received under such agreements are accounted in the statement of profit and loss

1.15 Employee benefits : Provident Fund Employees State Insurance and Gratuity are defined contribution schemes and contributions are charged to statement of profit and loss of the year in which the contributions to the respective funds are due The Company has opted for LIC group gratuity scheme For calculating gratuity liability the premium ascertained by LIC has been taken into account Long term accumulated absences are provided based on the actuarian valuation

1.16 Excise duty : The Excise Duty on sale of finished goods is deducted from turnover to arrive at net sales as shown in the statement of profit and loss The Excise Duty appearing in the statement of profit and loss as an expenditure represents excise duty provision for difference between opening and closing stock of finished goods

1.17 Cash Flow Statement : Cash flows are reported using the indirect method whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non cash nature and any difference are accruals of past or future cash receipts or payments The cash flows from operating investing and financing activities of the company are segregated based on the available information

1. 18 Borrowing Cost : Borrowing cost which are directly attributable to the construction of qualifying assets are capitalised as a part of the cost of the asset


Mar 31, 2012

1.1 The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 . The financial statements have been prepared on going concern basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year

1.2 Fixed Assets : The Fixed Assets are carried at Cost less accumulated depreciation and impairment losses, if any.

Cost includes related taxes, duties, freight, insurance etc., attributable to acquisition and installation of assets and borrowing cost incurred up to the date of commencing operations, but excludes duties and taxes that are recoverable from taxing authorities. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance. Assets which are not ready for their intended use and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest

1.3 Long Term Investments : Investments are accounted at cost. The diminution in the market value of long term investments is recognized when diminution is considered permanent

1.4 Depreciation : Straight line method has been adopted for providing depreciation on fixed assets as per the rates prescribed in Schedule XIV to the Companies Act 1956, other than for Co-Generation Division and Wind Mill Division. For the assets of Co-Generation division and Wind M ill Division, depreciation has been provided under written down value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 . For additions and deletions, depreciation is provided from/to the date of addition/deletion on pro-rata basis. Depreciation on asset additions costing Rs.5000/- or less is provided at the rate of 100% in the year of capitalisation

1.5 Valuation of Inventory :

(I) Finished Goods

Sugar

Granite Blocks

Polished Granite slabs and tiles

Molasses At weighted average cost or Net

Bagasse Realizable value whichever is lower.

Industrial Alcohol

Fuel Oil

Bio-compost

Sawn Granite slabs and process stock - At cost or net realizable value whichever is lower

Raw material, consumables, stores & spares and others At weighted average cost or Net

Realizable value whichever is lower

(II) The cost for the finished goods and process stock is inclusive of cost of purchase, cost of conversion, excise duty, cess if any and other costs incurred in bringing the inventories to their present location and condition

1.6 Revenue Recognition : All Income and Expenses are accounted on accrual basis. The turnover is accounted without considering inter-division transfers for own consumption

1.7 Foreign Currency Transactions I Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction. Foreign currency monetary items as at the balance sheet date are reported using the closing rate or at the rate that is likely to be realized from / required to disburse. The gain or loss due to increase or decrease in value of reporting currency due to fluctuations in rates of exchange are recognized in the Statement of Profit and Loss

1.8 Provision, Contingent Liabilities & Contingent Assets I Provision is recognized only when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are shown by way of notes. Contingent assets are neither recognized nor disclosed in the financial statements

1.9 Impairment of Assets I Impairment of assets are assessed as at the close of each financial year and appropriate provision if any, are recognized and given effect to the accounts

1.10 Taxation Current tax is determined at the current rates of Income Tax on taxable income and tax credits are computed in accordance with the provisions of the Income Tax Act, 1961.Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which give future economic benefit 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 recognized as an asset in the balance sheet when it is probable that future economic benefit associated with it will flow to the company

1.11 Deferred Tax i Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws that have been substantially enacted as at the balance sheet date. The deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that these would be realized in future

1.12 Government Grants i Government grants are recognized based on the reasonable assurance that the Company will comply with the condition attached to the grants and the grants will be received. Government grant in the nature of revenue has been recognized on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate. Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same

1.13 Segment Reporting I The segment reporting is in line with the accounting policies of the Company. Inter segment transactions have been accounted for, based on the price which has been arrived at considering cost and market price. Revenue and expenses that are directly identifiable with or allocable to segments are considered for determining the segment results. Segment assets and liabilities include those directly identifiable with the respective segments. Business segments are identified on the basis of the nature of products, the ris k/ return profile of individual business, the organizational structure and the internal reporting system of the Company

1.14 Leases I The Company s significant leasing arrangements are operating leases and cancelable in nature. The lease rentals paid/received under such agreements are accounted in the statement of profit and loss

1.15 Employee Benefits I Provident Fund, Employees State Insurance and Gratuity are defined contribution schemes and contributions are charged to statement of profit and loss of the year in which the contributions to the respective funds are due. Gratuity liability to the Employees on actuarial basis has been accounted in full. The Company has opted for LIC group gratuity scheme. For calculating gratuity liability the premium ascertained by LIC has been taken into account. Long term accumulated absences are provided based on the actuarial valuation

1.16 Excise Duty I The Excise Duty on sale of finished goods is deducted from turnover to arrive at net sales as shown in the statement of profit and loss . The Excise Duty appearing in the statement of profit and loss as an expenditure represents excise duty provision for difference between opening and closing stock of finished goods

1.17 Cash Flow Statement : Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non cash nature and any difference are accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available information

1.18 Borrowing Cost : Borrowing cost which are directly attributable to the construction of qualifying assets are capitalized as a part of the cost of the asset


Mar 31, 2011

1 The accompanying financial statements have been prepared on a going concern basis under the historic cost convention on accrual basis of accounting in confirmity with Generally Accepted Accounting Principles in India ("Indian GAAP") and provisions of the Companies Act 1956

2 Fixed Assets : The Fixed Assets are valued/stated at Cost. Cost includes related taxes, duties, freight, insurance etc., attributable to acquisition and installation of assets and borrowing cost incurred up to the date of commencing operations but excludes duties and taxes that are recoverable from taxing authorities

3 Investments: Investments are accounted at cost. The diminution in the market value of long term investments is recognized when diminution is considered permanent

4 Depreciation : Straight line method has been adopted for providing depreciation on fixed assets as per the rates prescribed in Schedule XIV to the Companies Act 1956, other than for Co-Generation Division and Wind Energy Division. For the assets of Co-Generation Division and Wind Energy Division, depreciation has been provided under written down value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. For additions and deletions depreciation is provided from/to the date of addition/deletion on pro-rata basis. Depreciation on asset additions costing Rs 5000/- or less is provided at the rate of 100%

5 Valuation of Inventory

(I) Finished goods Sugar

Granite blocks

Polished granite slabs and tiles Molasses Bagasse Industrial alcohol Fusel oil Bio-compost At cost or Net Realisable value whichever is lower Sawn granite slabs and process stock At estimated cost or net realisable value whichever is lower Raw material, consumables, stores & spares and others At weighted average cost or Net Realisable value whichever is lower

(II) The cost for the finished goods and process stock is inclusive of weighted average cost of raw material, process material, stores and spares, packing material and cost of conversion, excise duty, cess if any and other costs incurred in bringing the inventories to their present location and condition

6 Revenue Recognition : All Income and Expenses are accounted on accrual basis. The turnover is accounted without considering inter-division transfers for own consumption. Interest income is recognised on time proportion basis and dividend income is recognised when right to receive is established

7 Foreign Currency transactions : Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction. Foreign currency monetary items as at the balance sheet date are reported using the closing rate or at the rate that is likely to be realised from / required to disburse. The gain or loss due to increase or decrease in value of reporting currency due to fluctuations in rates of exchange are recognized in the profit and loss account

8 Provision, Contingent liabilities & Contingent assets: Provision is recognised only when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are shown by way of notes attached to and forming part of accounts. Contingent assets are neither recognised nor disclosed in the financial statements

9 Impairment of assets are assessed as at the close of each financial year and appropriate loss if any, are charged to the Profit and loss account

10 Gratuity liability to the Employees on actuarial basis has been accounted in full. The Company has opted for Life Insurance Corporation of India Group Gratuity Scheme and premium demanded by LIC upto 31.3.2011 has been accounted for and paid

11 Current tax is determined at the current rates of Income Tax on taxable income and tax credits are computed in accordance with the provisions of the Income Tax Act, 1961

12 Deferred tax is recognized on timing difference between the accounting income and the taxble income for the year and quantified using the tax rates and laws that have been substantially enacted as at the balance sheet date. The deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that these would be realized in future

13 Government grants are recognized based on the reasonable assurance that the Company will comply with the conditions attached to the grants and the grants will be received. Government grants in the nature of revenue have been recognized on a systematic basis in the profit and loss account over the periods necessary to match them with the related costs which they are intended to compensate and the grants have been adjusted against the related expenses.

14 The segment reporting is in line with the accounting policies of the Company. Inter segment transactions have been accounted for, based on the price which has been arrived at considering cost and market price. Revenue and expenses that are directly identifiable with or allocable to segments are considered for determining the segment results. Segment assets and liabilities include those directly identifiable with the respective segments. Business segments are identified on the basis of the nature of products, the risk/return profile of individual business, the organizational structure and the internal reporting system of the Company

15 The Company's significant leasing arrangements are operating leases and cancelable in nature. The lease rentals paid/received under such agreements are accounted in the profit and loss account

16 Employee benefits: Provident Fund/Pension Fund and Gratuity liability are defined contribution schemes and contributions are charged to profit and loss account of the year in which the contributions to the respective funds are due. Short term employee benefits including accumulated compensated absences are provided for based on the expected obligation on an undiscounted basis

17 The Excise Duty on sale of finished goods is deducted from turnover to arrive at net sales as shown in the profit and loss account. The Excise Duty appearing in the profit and loss account as an expenditure represents excise duty provision for difference between opening and closing stock of finished goods

18 Borrowing cost which are directly attributable to the construction of qualifying assets are capitalised as a part of the cost of the asset


Mar 31, 2010

1 The accompanying financial statements have been prepared on a going concern basis under the historic cost convention on accrual basis of accounting in confirmitywith Generally Accepted Accounting Principles in India ("Indian GAAP")

2 Fixed Assets : The Fixed Assets are valued/stated at Cost. Cost includes related taxes, duties, freight, insurance etc., attributable to acquisition and installation of assets and borrowing cost incurred up to the date of commencing operations, but excludes duties and taxes that are recoverable from taxing authorities

3 Investments: Investments are accounted at cost. The diminution in the market value of long term investments is recognised when diminution is considered permanent

4 Depreciation : Straight line method has been adopted for providing depreciation on fixed assets as per the rates prescribed in Schedule XIV to the Companies Act 1956,other than for Co-Generation Division and Wind Energy Division. For the assets of Co-Generation Division and Wind Energy Division depreciation has been provided under written down value method as perthe rates prescribed in ScheduleXIV to the Companies Act, 1956. For additions and deletions depreciation is provided from to the date of addition/deletion on pro-rata basis. Depreciation on asset additions costing Rs.5000/-or less is provided at the rate of 100%

5 Valuation of Inventory (I) Finished Goods

Sugar

Granite Blocks

Polished Granite slabs tiles and Monuments At weighted average cost or Net

Molasses Realisable value whichever is lower

Bagasse

Industrial Alcohol

Fusel Oil

Bio-compost 1

Sawn Granite slabs and process stock - At estimated cost or net realisable value whichever is lower

Raw material, consumables, stores &spares At weighted average costor Net and others Realisablevaluewhicheveris lower

(ll)Thecostforthe finished goods and process stock is inclusive of cost of purchase, cost of conversion Excise duty, cess if any and other costs incurred in bringing the inventories to their present location and condition

6 Revenue Recognition: All Income and Expenses are accounted on accrual basis. The turnover is accounted without considering Inter-division transfers for own consumption

7 Foreign Currency Transactions : Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction. Foreign currency monetary items as at the balance sheet date are reported using the closing rate or at the rate that is likely to realised from / required to disburse. The gain or loss due to increase or decrease in value of reporting currency due to fluctuations in rates of exchange are recognised in the profit and loss account.

8 Provision, Contingent liabilities & Contingent assets : Provision is recognised only when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are shown by way of notes attached to and forming part of accounts. Contingent assets are neither recognised not disclosed in the financial statements

9 Impairment of assets are assessed as at the close of each financial year and appropriate provision if any, are recognised and given effect to inthe Accounts

10 Gratuity liability to the Employees on actuarial basis has been accounted in full. The company has opted for Life Insurance Corporation of India Group Gratuity Scheme and premium demanded by LIC upto 31.3.2010 has been accounted for and paid

11 Current tax is determined at the current rates of Income Tax on taxable income and tax credits are computed in accordance with the provisions of the Income TaxAct, 1961

12 Deferred tax is recognised on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws that have been substantially enacted as at the balance sheet date. The deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that these would be realised in future

13 Government grants are recognised based on the reasonable assurance that the company will comply with the conditions attached to the grants and the grants will be received. Government grant in the nature of revenue has been recognised on a systematic basis in the profit and loss account over the periods necessary to match them with the related costs which they are intended to compensate and the grants have been adjusted against the related expenses

14 The segment reporting is in line with the accounting policies of the company. Inter segment transactions have been accounted for, based on the price which has been arrived at considering cost and market price. Revenue and expenses that are directly identifiable with or allocable to segments are considered for determining the segment results. Segment assets and liabilities include those directly identifiable with the respective segments. Business segments are identified on the basis of the natureof products, the risk/return profileof individual business, the organisational structure and the internal reporting system of the company

15 The companys significant leasing arrangements are operating leases and cancelable in nature. The lease rentals paid/received under such agreements are accounted in the profit and loss account

16 Employee benefits : Provident Fund/Pension Fund and Gratuity liability are defined contribution schemes and contributions are charged to profit and loss account of the year in which the contributions to the respective funds are due. Short term employee benefits including accumulated compensated absences are provided for, based on the expected obligation on an undiscounted basis

17 The Excise Duty on sale of finished goods is deducted from turnover to arriveatnet sales as shown in the profit and loss account. The Excise Duty appearing inthe profit and loss accountasan expenditure, represents excise duty provision for difference between opening and closing stock of finished goods

18 Borrowing costwhich are directly attributable to the construction of qualifying assets are capitalised as a partof the cost of the asset

 
Subscribe now to get personal finance updates in your inbox!