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Accounting Policies of Dhampure Specialty Sugars Ltd. Company

Mar 31, 2015

A. Method of Accounting

The financial statement are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

b. Impairment of Assets

The Company identifies impairable tangible fixed assets at the year end in term of cash generating unit concept for the purpose of arriving at impairment loss thereon being the difference between the book value and recoverable value of relevant assets if indication of impairment exists within the meaning of Para 5 to 13 of AS-28 issued by ICAI. Impairment loss if any when crystallizes in charged against revenue of the year.

c. Inventories

Inventories are valued at lower of cost or net realizable value. Cost is determined on FIRST IN FIRST OUT basis. Cost is comprises of all cost of purchase, cost of conversion and other costs incurred in bring the inventories to their present location and condition. Raw material and Packing material cost is exclusive of excise duty paid / payable on purchases, as the same has been set off against excise duty payable on sale of finished goods under CENVAT scheme.

d. Revenue Recognition

Revenue is recognized when there is reasonable certainty of its ultimate realization / collection.

e. Investments

Investments are stated at costs. Provision is made, where; there is a permanent fall in the value of investments.

f. Provision for Taxation

(i) Provision for income tax is made on the basis of the estimated taxable income for the current accounting period in accordance with the Income Tax Act, 1961.

(ii) Deferred tax resulting from timing difference between book and tax profit is accounted for under liability method at the current rate of tax to the extent that the timing differences are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

g. Fixed Assets and Depreciation

(a) Fixed Assets are stated at cost including all direct incidental expenses.

(b) Depreciation on Fixed Assets is provided on Straight line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

h. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. A disclosure of contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.

i. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date.

j. Foreign Exchange Transactions

(i) Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of transactions.

(ii) The exchange rate fluctuation in revenue accounts is adjusted in the respective head in Statement of Profit and Loss.

k. Employee Retirement Benefits Short term employee benefits

All employee benefits payable/available within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages and bonus etc., are recognised in the statement of profit and loss in the period in which the employee renders the related service.

Defined benefit plans

Defined benefit plans of the company consist of gratuity and leave encashment. Gratuity :

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to the vested employees at retirement, death while in employment or on termination of employment of an amount based on the respective employee's salary and tenure of employment. Vesting occurs upon completion of five years of service.

Leave Encashment

As per company's policy, eligible leaves have paid on every year basis. Defined contribution plans- Defined contribution plans of the company consist of Provident fund.

Provident Fund

The company makes specified monthly contribution towards the employees' provident fund for the eligible employees. The contribution made to provident fund are charged to the statement of profit and loss as and when these become payable.


Mar 31, 2014

A. Method of Accounting

The financial statement are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

b. Impairment of Assets

The Company identifies impairable tangible fixed assets at the year end in term of cash generating unit concept for the purpose of arriving at impairment loss thereon being the difference between the book value and recoverable value of relevant assets if indication of impairment exists within the meaning of Para 5 to 13 of AS-28 issued by ICAI. Impairment loss if any when crystallizes in charged against revenue of the year.

c. Inventories

Inventories are valued at lower of cost or net realizable value. Cost is determined on FIRST IN FIRST OUT basis. Cost is comprises of all cost of purchase, cost of conversion and other costs incurred in bring the inventories to their present location and condition. Raw material and Packing material cost is exclusive of excise duty paid / payable on purchases, as the same has been set off against excise duty payable on sale of finished goods under CENVAT scheme.

d. Revenue Recognition

Revenue is recognized when there is reasonable certainty of its ultimate realization / collection.

e. Investments

Investments are stated at costs. Provision is made, where, there is a permanent fall in the value of investments.

f. Provision for Taxation

(i) Provision for income tax is made on the basis of the estimated taxable income for the current accounting period in accordance with the Income Tax Act, 1961.

(ii) Deferred tax resulting from timing difference between book and tax profit is accounted for under liability method at the current rate of tax to the extent that the timing differences are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

g. Fixed Assets and Depreciation

(a) Fixed Assets are stated at cost including all direct incidental expenses.

(b) Depreciation on Fixed Assets is provided on Straight line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

h. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. A disclosure of contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.

i. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date.

j. Foreign Exchange Transactions

(i) Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of transactions.

(ii) The exchange rate fluctuation in revenue accounts is adjusted in the respective head in Statement of Profit and Loss.

k. Employee Retirement Benefits Short term employee benefits

All employee benefits payable/available within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages and bonus etc., are recognised in the statement of profit and loss in the period in which the employee renders the related service.

Defined benefit plans

Defined benefit plans of the company consist of gratuity and leave encashment.

* Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to the vested employees at retirement, death while in employment or on termination of employment of an amount based on the respective employee''s salary and tenure of employment. Vesting occurs upon completion of five years of service.

* Leave Encashment

As per company''s policy, eligible leaves have paid on every year basis.

Defined contribution plans-

Defined contribution plans of the company consist of Provident fund.

* Provident Fund

The company makes specified monthly contribution towards the employees'' provident fund for the eligible employees. The contribution made to provident fund are charged to the statement of profit and loss as and when these become payable.


Mar 31, 2013

A. Method of Accounting

The financial statement are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

b. Impairment of Assets

The Company identifies impairable tangible fixed assets at the year end in term of cash generating unit concept for the purpose of arriving at impairment loss thereon being the difference between the book value and recoverable value of relevant assets if indication of impairment exists within the meaning of para 5 to 13 of AS-28 issued by ICAI. Impair- ment loss if any when crystallizes in charged against revenue of the year.

c. Inventories

Inventories are valued at lower of cost or net realizable value. Cost is determined on FIRST IN FIRST OUT basis. Cost is comprises of all cost of purchase, cost of conversion and other costs incurred in bring the inventories to their present location and condition. Raw material cost is exclusive of excise duty paid / payable on purchases, as the same has been set off against excise duty payable on sale of finished goods under CENVAT scheme.

d. Revenue Recognition

Revenue is recognized when there is reasonable certainty of its ultimate realization/ collection.

e. Provision for Taxation

(i)Provision for income tax as made on the basis of the estimated taxable income for the current accounting period in accordance with the Income Tax Act, 1961.

(ii)Deferred tax resulting from timing difference between book and tax profit is accounted for under liability method at the current rate of tax to the extent that the timing differences are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

f. Bonus, Gratuity and Leave Encashment

Bonus, Gratuity and leave encashment are accounted on due basis.

g. Fixed Assets and Depreciation

(a) Fixed Assets are stated at cost including all direct incidental expenses.

(b) Depreciation on Fixed Assets is provided on Straight line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

h. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. A disclosure of contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.

i. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares out- standing during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date.

j. Foreign Exchange Transactions

(i) Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of transactions. (ii) The exchange rate fluctuation in revenue accounts is adjusted in the respective head in Profit and Loss Accounts.


Mar 31, 2012

A. Method of Accounting

The financial statement are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

b. Change in Accounting Policy

During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become appli- cable to the company for preparation and presentation of its financial statements. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However it has signifi- cant impact on presentation and disclosures made in financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

c. Impairment of Assets

The Company identifies impairable tangible fixed assets at the year end in term of cash generating unit concept for the purpose of arriving at impairment loss thereon being the difference between the book value and recoverable value of relevant assets if indication of impairment exists within the meaning of para 5 to 13 of AS-28 issued by ICAI. Impairment loss if any when crystallizes in charged against revenue of the year.

d. Inventories

Inventories are valued at lower of cost or net realizable value. Cost is determined on FIRST IN FIRST OUT basis. Cost is comprises of all cost of purchase, cost of conversion and other costs incurred in bring the inventories to their present location and condition. Raw material cost is exclusive of excise duty paid / payable on purchases, as the same has been set off against excise duty payable on sale of finished goods under CENVAT scheme.

e. Revenue Recognition

Revenue is recognized when there is reasonable certainty of its ultimate realization/ collection.

f. Provision for Taxation

(i)Provision for income tax as made on the basis of the estimated taxable income for the current accounting period in accordance with the Income Tax Act, 1961.

(ii)Deferred tax resulting from timing difference between book and tax profit is accounted for under liability method at the current rate of tax to the extent that the timing differences are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

g. Bonus, Gratuity and Leave Encashment

Bonus, Gratuity and leave encashment are accounted on due basis.

h. Fixed Assets and Depreciation

(a) Fixed Assets are stated at cost including all direct incidental expenses.

(b) Depreciation on Fixed Assets is provided on Straight line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

i. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. A disclosure of contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.

j. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity sharehold- ers and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date.

k. Foreign Exchange Transactions

(i) Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of transactions.

(ii) The exchange rate fluctuation in revenue accounts is adjusted in the respective head in Profit and Loss Accounts.


Mar 31, 2011

(a) BASIS OF ACCOUNTING

The financial statement are prepared under historical cost convention, on an accrual basis and in are in accordance with applicable mandatory accounting standards nottified by The Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the companies act. 1956.

(b) FIXED ASSETS & DEPRECIATION

All fixed assets are stated at cost of acquisition less depreciation. Costs of acquisition include related pre-operational expenses. Depreciation on fixed assets (other than Land & Live Stock where no depreciations is provided) has been provided on straight line method at the rates specified in Schedule XIV to the Companies Act, 1956 on prorata basis.

(c) IMPAIRMENT OF ASSETS

The Company identifies improbable tangible fixed assets at the year end in term of cash generating unit concept for the purpose of arriving at impairment loss thereon being the difference between the book value and recoverable value of relevant assets if indication of impairment exists within the meaning of para 5 to 13 of AS-28 issued by ICAI. Impairment loss if any when crystallizes in charged against revenue of the year.

(d) INVENTORIES

Inventories are valued at lower of cost of net realizable value. Cost is determined on FIRST IN FIRST OUT basis. Cost is comprises of all cost of purchase, cost of conversion and other costs incurred in bring the inventories to their present location and condition. Raw material cost is exclusive of excise duty paid / payable on purchases, as the same has been set off against excise duty payable on sale of finished goods under CENVAT scheme.

(e) INVESTMENTS

Investments are stated at cost. However, diminution in value other than temporary is provided. The profit / loss arising on accounts of sales is recognized in the Profit & Loss Account.

(f) REVENUE RECOGNITION

Revenue is recognized on sale of goods. Sales are inclusive of excise duty but net of Sales Tax. Duty draw back is accounted for on accrual basis. Commission is recognized at the time of delivery of goods effected by the principal. Transportation services are recognized on provision of services. Income from securities transaction is recognized on "Settlement” date basis. Income on speculative transaction in made on settlement basis.

(g) FOREIGN EXCHANGE TRANSACTIONS

(i) Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of transactions.

(ii) The exchange rate fluctuation in revenue accounts is adjusted in the respective head in Profit and Loss Accounts.

(h) RESEARCH & DEVELOPMENT

Research & Development expenses of revenue nature are charged to Profit & Loss Account in the year in which these are incurred.

(i) PRIOR PERIOD ITEMS

The expenditure and income pertaining to prior period are included under the respective head of accounts in the Profit & Loss Accounts.

(j) INCOME TAXES AND DEFERRED TAX

Income tax expenses comprise current tax and deferred tax charge of credit. The deferred tax charge or credit is recognized using current tax rates. Deferred tax assets arising from unabsorbed depreciation or carry forward losses are recognized only if there is virtual the extent there is reasonable certainty of realization in future. Such assets are to be reviewed at each Balance Sheet date to reassess the reliability

(k) RETIREMENT BENEFITS

(i) The Company''s contribution to Provident Fund & Family Pension Scheme is charged to the Profit & Loss Account. (ii) Accrued liability for Gratuity in accordance with the provision of the Payment of Gratuity Act, 1972 calculated on the assumption that such benefits are payable to all the employees at the end of accounting year, has been charged to Profit and Loss Account.

(I) Accounting policies not specifically referred to are otherwise consistent and in consonance with generally accepted accounting practices.

 
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