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Accounting Policies of Empee Sugars and Chemicals Ltd. Company

Mar 31, 2015

1. Accounting Convention

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 (Accounts) Rules, 2014 (as amended) and the relevant provisions of the Companies Act, 2013. 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.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP require the management to make estimate and assumptions considered in the reported amounts of assets and liabilities as of the date of the financial statements and the reported income and expenses during the reporting period. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Further the results may vary from these estimates. Differences between the actual results and the estimates are recognized in the year in which the results are known / materialized.

3. 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 deferrals or 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.

4. Revenue Recognition

All income and expenditure are accounted for on accrual basis as stated herein except in respect of such items as are specifically mentioned hereunder and in the notes.

Sales Income is accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

Insurance claims are accounted as and when the claims are settled

Interest due from growers for seed supplied is accounted as and when cane is received from growers.

Excise duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses.

Other Income - a) Interest Income is accounted at applicable coupon rates on respective investments, on time basis. b) Dividend income is accounted as and when received.

5. Fixed Assets, Depreciation / Amortization and Impairment

(i) Fixed assets are stated at cost less accumulated depreciation /amortization. Direct costs are capitalized until fixed assets are ready for use. These costs include freight, installation costs, duties and taxes and other directly attributable costs incurred to bring the assets to their working condition for intended use.

Borrowing costs directly attributable to acquisition of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

(ii) Capital Work in Progress comprises outstanding advances paid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use at the Balance Sheet date. Cost of Work in Progress is stated at cost.

(iii) Depreciation on fixed assets is provided pro-rata using the straight-line method at the rates specified in Schedule II to the Companies Act, 2013.

(iv) The carrying amounts of assets are reviewed at each balance sheet date to ascertain impairment based on internal or external factors. Impairment is recognized if the carrying value exceeds the higher of net selling price of the assets and its value in use.

6. Investments

Invests which are long term in nature, are stated at cost. Provision is made for diminution in value if it is of nature other than temporary.

Current investments are valued at lower of cost and fair value.

7. Inventories

Inventories are stated as under:

a. Raw materials and stores & spare parts are valued at lower of cost and estimated net realizable value using FIFO Method.

b. Work in process and finished goods are valued at lower of cost and estimated net realizable value using FIFO Method.

8. Employee Benefits

(i) Defined Contribution Plan

Provident Fund

Contributions to the Regional Provident Fund Commissioner to secure retrial benefits in respect of Employees'' Provident Fund and Employees'' Family Fund, based on the Statutory provisions as per the Employee Provident Fund Scheme are charged to revenue.

(ii) Defined benefit Plan

Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by Reliance Life Insurance Company Ltd. The Company accounts its liability for future gratuity benefits based on actuarial valuation, as at the Balance Sheet date, determined every year using the Projected Unit Credit method. Actuarial gains / losses are immediately recognized in the statement of Profit and Loss.

Long Term Compensated Absences

The liability for long term compensated absences carried forward on the Balance Sheet date is provided for based on an actuarial valuation using the Projected Unit Credit method, as at the Balance Sheet date.

Short Term Employee Benefits

Short term employee benefits includes short term compensated absences which is recognized based on the eligible leave at credit on the Balance Sheet date, and the estimated cost is based on the terms of the employment contract.

9. Foreign Currency Transactions

Foreign Currency Transactions are accounted at the exchange rates ruling on the date of the transaction. Foreign currency monetary items as at the balance sheet date are restated at the closing exchange rates Exchange differences arising on actual payments / realizations and year-end restatements are dealt with in profit and loss account.

The Company enters into forward exchange contracts and other instruments that are in substance a forward exchange contract to hedge its risks associated with foreign currency fluctuations. The premium or discount arising at the inception of a forward exchange contract or similar instrument is amortized as expense or income over the life of the contract. Exchange differences on such contract are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation of a forward exchange contract or similar instrument is recognized as income or expenses for the year.

10. Taxation

Income Tax : Current tax is the amount of tax payable on the taxable income for the year and is determined in accordance with the provisions of the Income Tax Act, 1961

Deferred Tax : Deferred tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized in there is virtual certainty that there will be sufficient future taxable income available in realize such losses. Other deferred tax assets are recognized if there is reasonable certainty that there will be sufficient future taxable income available to realize such assets.

11. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when the Company has present or legal or constructive obligations as a result of past events, for which it is probable that an outflow of economic benefit will be required to settle the transaction and a reliable estimate can be made for the amount of the obligation.

Contingent liability is disclosed for:

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or

(ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

12. Segment Reporting

As per the Accounting Standard (AS 17) on "segment reporting", segment information has been provided under the note to consolidated financial statements.


Mar 31, 2014

1. Accounting Convention

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.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP require the management to make estimate and assumptions considered in the reported amounts of assets and liabilities as of the date of the financial statements and the reported income and expenses during the reporting period. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Further the results may vary from these estimates. Differences between the actual results and the estimates are recognized in the year in which the results are known / materialized.

3. 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 deferrals or 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.

4. Revenue Recognition

All income and expenditure are accounted for on accrual basis as stated herein except in respect of such items as are specifically mentioned hereunder and in the notes.

Sales Income is accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

Insurance claims are accounted as and when the claims are settled

Interest due from growers for seed supplied is accounted as and when cane is received from growers.

Excise duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses.

Other Income - a) Interest Income is accounted at applicable coupon rates on respective investments, on time basis. b) Dividend income is accounted as and when received.

5. Fixed Assets, Depreciation / Amortization and Impairment

(i) Fixed assets are stated at cost less accumulated depreciation /amortization. Direct costs are capitalized until fixed assets are ready for use. These costs include freight, installation costs, duties and taxes and other directly attributable costs incurred to bring the assets to their working condition for intended use. Borrowing costs directly attributable to acquisition of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

(ii) Capital Work in Progress comprises outstanding advances paid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use at the Balance Sheet date. Cost of Work in Progress is stated at cost.

(iii) Depreciation on fixed assets is provided pro-rata using the straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956.

(iv) The carrying amounts of assets are reviewed at each balance sheet date to ascertain impairment based on internal or external factors. Impairment is recognized if the carrying value exceeds the higher of net selling price of the assets and its value in use.

6. Investments

Invests which are long term in nature, are stated at cost. Provision is made for diminution in value if it is of nature other than temporary. Current investments are valued at lower of cost and fair value.

7. Inventories

Inventories are stated as under:

a. Raw materials and stores & spare parts are valued at lower of cost and estimated net realizable value using FIFO Method.

b. Work in process and finished goods are valued at lower of cost and estimated net realizable value using FIFO Method.

8. Employee Benefits

(i) Defined Contribution Plan

Provident Fund

Contributions to the Regional Provident Fund Commissioner to secure retrial benefits in respect of Employees'' Provident Fund and Employees'' Family Fund, based on the Statutory provisions as per the Employee Provident Fund Scheme are charged to revenue.

(ii) Defined benefit Plan

Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by Reliance Life Insurance Company Ltd. The Company accounts its liability for future gratuity benefits based on actuarial valuation, as at the Balance Sheet date, determined every year using the Projected Unit Credit method. Actuarial gains / losses are immediately recognized in the statement of Profit and Loss.

Long Term Compensated Absences

The liability for long term compensated absences carried forward on the Balance Sheet date is provided for based on an actuarial valuation using the Projected Unit Credit method, as at the Balance Sheet date.

Short Term Employee Benefits

Short term employee benefits includes short term compensated absences which is recognized based on the eligible leave at credit on the Balance Sheet date, and the estimated cost is based on the terms of the employment contract.

9. Foreign Currency Transactions

Foreign Currency Transactions are accounted at the exchange rates ruling on the date of the transaction. Foreign currency monetary items as at the balance sheet date are restated at the closing exchange rates. Exchange differences arising on actual payments / realizations and yearend restatements are dealt with in profit and loss account.

The Company enters into forward exchange contracts and other instruments that are in substance a forward exchange contract to hedge its risks associated with foreign currency fluctuations. The premium or discount arising at the inception of a forward exchange contract or similar instrument is amortized as expense or income over the life of the contract. Exchange differences on such contract are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation of a forward exchange contract or similar instrument is recognized as income or expenses for the year.

10. Taxation

Income Tax : Current tax is the amount of tax payable on the taxable income for the year and is determined in accordance with the provisions of the Income Tax Act, 1961

Deferred Tax : Deferred tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized in there is virtual certainty that there will be sufficient future taxable income available in realize such losses. Other deferred tax assets are recognized if there is reasonable certainty that there will be sufficient future taxable income available to realize such assets.

11. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when the Company has present or legal or constructive obligations as a result of past events, for which it is probable that an outflow of economic benefit will be required to settle the transaction and a reliable estimate can be made for the amount of the obligation.

Contingent liability is disclosed for:

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or

(ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

12. Segment Reporting

The Company prepares its segment information in conformity with the accounting policies adopted for presenting the financial statements of the Company as whole.


Mar 31, 2013

1. Accounting Convention

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.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP require the management to make estimate and assumptions considered in the reported amounts of assets and liabilities as of the date of the financial statements and the reported income and expenses during the reporting period. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Further the results may vary from these estimates. Differences between the actual results and the estimates are recognized in the year in which the results are known / materialized.

3. 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 deferrals or 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.

4. Revenue Recognition

All income and expenditure are accounted for on accrual basis as stated herein except in respect of such items as are specifically mentioned hereunder and in the notes.

Sales Income is accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

Insurance claims are accounted as and when the claims are settled

Interest due from growers for seed supplied is accounted as and when cane is received from growers.

Excise duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses.

Other Income

a) Interest Income is accounted at applicable coupon rates on respective investments, on time basis. b) Dividend income is accounted as and when received.

5. Fixed Assets, Depreciation / Amortization and Impairment

(i) Fixed assets are stated at cost less accumulated depreciation amortization. Direct costs are capitalized until fixed assets are ready for use. These costs include freight, installation costs, duties and taxes and other directly attributable costs incurred to bring the assets to their working condition for intended use. Borrowing costs directly attributable to acquisition of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

(ii) Capital Work in Progress comprises outstanding advances paid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use at the Balance Sheet date. Cost of Work in Progress is stated at cost.

(iii) Depreciation on fixed assets is provided pro-rata using the straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956.

(iv) The carrying amounts of assets are reviewed at each balance sheet date to ascertain impairment based on internal or external factors. Impairment is recognized if the carrying value exceeds the higher of net selling price of the assets and its value in use.

6. Investments

Investments which are long term in nature, are stated at cost. Provision is made for diminution in value if it is of nature other than temporary.

Current investments are valued at lower of cost and fair value.

7. Inventories

Inventories are stated as under:

a. Raw materials and stores & spare parts are valued at lower of cost and estimated net realizable value using FIFO Method.

b. Work in process and finished goods are valued at lower of cost and estimated net realizable value using FIFO Method.

8. Employee Benefits

(i) Defined Contribution Plan

Provident Fund

Contributions to the Regional Provident Fund Commissioner to secure retrial benefits in respect of Employees Provident Fund and Employees Family Fund, based on the Statutory provisions as per the Employee Provident Fund Scheme are charged to revenue.

(ii) Defined benefit Plan

Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by Reliance Life Insurance Company Ltd. The Company accounts its liability for future gratuity benefits based on actuarial valuation, as at the Balance Sheet date, determined every year using the Projected Unit Credit method. Actuarial gains / losses are immediately recognized in the statement of Profit and Loss.

Long Term Compensated Absences

The liability for long term compensated absences carried forward on the Balance Sheet date is provided for based on an actuarial valuation using the Projected Unit Credit method, as at the Balance Sheet date.

Short Term Employee Benefits

Short term employee benefits includes short term compensated absences which is recognized based on the eligible leave at credit on the Balance Sheet date, and the estimated cost is based on the terms of the employment contract.

9. Foreign Currency Transactions

Foreign Currency Transactions are accounted at the exchange rates ruling on the date of the transaction. Foreign currency monetary items as at the balance sheet date are restated at the closing exchange rates. Exchange differences arising on actual payments / realizations and year-end restatements are dealt with in profit and loss account.

The Company enters into forward exchange contracts and other instruments that are in substance a forward exchange contract to hedge its risks associated with foreign currency fluctuations. The premium or discount arising at the inception of a forward exchange contract or similar instrument is amortized as expense or income over the life of the contract. Exchange differences on such contract are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation of a forward exchange contract or similar instrument is recognized as income or expenses for the year.

10. Taxation

Income Tax : Current tax is the amount of tax payable on the taxable income for the year and is determined in accordance with the provisions of the Income Tax Act, 1961

Deferred Tax : Deferred tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized in there is virtual certainty that there will be sufficient future taxable income available in realize such losses. Other deferred tax assets are recognized if there is reasonable certainty that there will be sufficient future taxable income available to realize such assets.

11. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when the Company has present or legal or constructive obligations as a result of past events, for which it is probable that an outflow of economic benefit will be required to settle the transaction and a reliable estimate can be made for the amount of the obligation.

Contingent liability is disclosed for:

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or

(ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

12. Segment Reporting

As per the Accounting Standard (AS 17) on segment reporting, segment information has been provided under the note to consolidated financial statements.


Sep 30, 2011

1. Basis of Accounting

The financial statements have been prepared under historical cost convention and following the accrual method of accounting in accordance with the applicable mandatory accounting standards notified by the companies (Accounting Standards) Rules, 2006 and the relevant provisions of Companies Act, 1956. The accounting is on the basis of going concern concept.

2. Use of Estimates

The preparation of financial statements, in conformity with the generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting year. Differences between the actual results and the estimates are recognized in the year in which the results are known / materialized.

3. Revenue Recognition

All income and expenditure are accounted for on accrual basis as stated herein except in respect of such items as are specifically mentioned hereunder and in the notes.

Sales Income is accounted exclusive of excise duty and sales tax wherever applicable and net of trade discounts.

Insurance claims are accounted as and when the claims are settled

Interest due from growers for seed supplied is accounted as and when cane is received from growers.

Excise duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses.

Other Income - a) Interest Income is accounted at applicable coupon rates on respective investments, on time basis. b) Dividend income is accounted as and when received.

4. Fixed Assets

Fixed assets are stated at cost less accumulated depreciation /amortization. Direct costs are capitalized until fixed assets are ready for use. These costs include freight, installation costs, duties and taxes and other directly attributable costs incurred to bring the assets to their working condition for intended use.

Capital Work-in-progress comprises outstanding advances paid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use at the balance sheet date. Capital work-in progress is stated at cost.

5. Depreciation/Amortization

Depreciation on fixed assets is provided using the straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956.

Depreciation is calculated on a pro-rata basis for assets purchased / sold during the year with reference to the month in which the fixed assets are put to use or commissioned. Individual assets costing less than Rs. 5000 are depreciated in full in the year of acquisition.

6. Impairment of Fixed Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

7. Cash flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, financing and investing activities of the Company are segregated.

8. Investments

Long term investments are stated at cost less provision for diminution in value other than temporary if any, in the opinion of the management. Short term investments are valued at cost or fair value whichever is lower

9. Inventories

Inventories are stated as under:

a. Finished Goods: At cost or net realizable value whichever is lower.

b. Work-in-Progress: At all direct costs and applicable production overheads to bring the goods to the present location and condition.

c. Raw materials, Stores & Spares: At landed cost on first-in -Fist- Out basis.

10. Foreign Currency Transaction

Foreign Exchange transactions are recorded at the exchange rates prevailing at the time of transaction.

Assets and Liabilities expressed in Foreign currencies (to the extent not covered against exchange fluctuations) are translated into Indian Rupees at the exchange rate prevailing at the Balance Sheet date and any loss or gain arising there from has been included in Finance charges as per the provisions of Accounting Standards 16 and 11(Revised) issued by The Institute of Chartered Accountants of India.

11. Prior Period and Extra Ordinary Items

Prior Period and Extra Ordinary items having material impact on the financial affairs of the Company are disclosed, wherever applicable. There is no material deviation in the accounting policies during the current year.

12. Taxation

Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law), deferred tax charge or credit (reflecting the tax effects of the timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantially enacted by the balance Sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. However, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.

Current tax and deferred tax assets and liabilities are offset to the extent o which the Company has a legally enforceable right to set off and they relate to taxes on income levied by the same governing taxation laws.

Tax on distributable profits payable by the company in accordance with the provisions of Income-tax Act, 1961 is disclosed in accordance with the guidance note on Accounting for Corporate Dividend Tax issued by the ICAI.

13. Borrowing Costs

Borrowing costs that are attributable to acquisition or construction of qualifying assets are included as part of the cost of such assets

Borrowing costs directly attributable to acquisition of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

14. Provisions

The company recognizes provision when there is a present obligation of the enterprise arising from past events, settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits which can be measured only by using a substantial degree of estimation.

Provision for contractual obligation has been provided for in accounts based on management's assessment of the probable outcome with reference to the available information supplemented by experience of similar transactions.

A disclosure for a 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.

15. Earnings per Share

The Company reports basic and diluted earnings per equity share in accordance with Accounting Standard-20. Basic earnings per equity share have been computed dividing net profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings during the year adjusted for effects of all dilutive potential equity shares per equity share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year. For Basic and diluted earnings before extra-ordinary items, the amount of extra-ordinary items and tax thereon are excluded for computation.

16. Retirement and Other Benefits

Contribution to Provident Fund is made as per the provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952 and charged to Profit and Loss Account and disclosed separately.

Gratuity and Leave encashment has been provided as per Actuarial Valuation.

17. Segment Reporting

A. Business Segments:

Based on the guiding principles given in Accounting Standard - 17 'Segment Reporting', the Company's business segments include Sugar, IAP and Power.

B. Segment Accounting Policies

In addition to the significant accounting policies applicable to the business segments as given in notes, the accounting policies in relation to segment accounting are as under:

a. Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

b. Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes, share capital, reserves, loans investments, miscellaneous expenditure and profit and loss appropriation account. While most of the assets / liabilities can be directly attributed to the individual segments, the carrying amount of certain assets / liabilities pertaining to both segments are allocated to the segments on a reasonable basis.

c. Inter segment sales between operating segments are accounted at market price. These transactions are eliminated in consolidation.

18. Miscellaneous Expenditure

Miscellaneous expenditure is written off over the period of Ten years on straight line method.


Mar 31, 2010

1. Basis of Accounting

Financial statements are prepared and presented under the historical cost convention and in accordance with the applicable accounting standards to the extent possible.

2. Revenue Recognition

Income from Operations is recognized in the Profit & Loss Account on accrual basis as stated herein except in respect of such items as are specifically mentioned hereunder and in the notes.

a. Sales income is accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

b. Insurance claims are accounted as and when the claims are settled.

c. Interest due from growers for seed supplied is accounted as and when cane is received from growers.

d. Excise Duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses

3. Fixed Assets and Depreciation/Amortization

3.1. Fixed Assets:- These assets are stated at their original cost of acquisition (including expenditure for the acquisition and/or installation) less accumulated depreciation.

3.2. Depreciation on Fixed assets has been provided on straight-line method at rates prescribed under Schedule XIV to the Companies Act, 1956 as amended by notification dated 15.12.93 issued hereunder and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during the year is reckoned on a pro rata basis with reference to the month in which the fixed assets are put to use or commissioned.

4 Impairment of Fixed Assets

Wherever events of changes in circumstances indicate that the carrying value of fixed assets may be impaired, the Company subjects such assets to a test of recoverability, based on discounted cash flows expected from use or disposal thereof. If the assets are impaired, the Company recognizes as impairment loss as the difference between the carrying value and fair value less costs to sell. None of the Companys fixed assets are considered impaired as on the Balance Sheet date.

5 Capital Work in Progress

Capital work in progress is stated at cost and includes advance on account of Capital Equipment paid to the suppliers.

6. Foreign Currency Transaction

Foreign exchange transactions are recorded at the exchange rates prevailing at the time of transaction. Assets and liabilities expressed in foreign currencies (to the extent not covered against exchange fluctuations) are translated into Indian Rupees at the exchange rate prevailing at the Balance Sheet date and any loss or gain arising there from has been included in Finance Charges as per the provision of Accounting Standard 16 and 11 issued by The Institute of Chartered Accountants of India.

7. Prior Period and Extra Ordinary Items

Prior Period and Extra Ordinary Items having material impact on the financial affairs of the Company are disclosed.

8. Retirement and Other Benefits

8.1. The company accounts gratuity liability accounted as and when gratuity is paid to the employees.

8.2. Contribution to Provident Fund is made as per provisions of Employees Provident fund and Miscellaneous Provisions Act, 1952 and charges to Profit and Loss Account and disclosed separately.

8.3. Liability for leave encashment is provided as and when the leave encashment is paid to the employees.

9. Income Tax

The Income Tax liability is provided in accordance with the provisions of the Income tax Act 1961.

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

10. Segment Reporting

A. Business Segments:

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Companys business segments include Sugar and Industrial Alcohol Plant (IAP).

B. Segment accounting policies:

In addition to the significant accounting policies applicable to the business segments as given in notes, the accounting policies in relation to segment accounting are as under:

a) Segment revenue and expenses:

Common revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

b) Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes, Share Capital, Loans, Investments, Miscellaneous Expenditure and Profit and Loss Appropriate Account. While most of the assets / liabilities can be directly attributed to the individual segments, the carrying amount of certain assets / liabilities pertaining to both segments are allocated to the segments on a reasonable basis.

11. Earning Per Share

The Company reports basic and diluted earnings per equity share in accordance with Accounting Standard - 20 Earnings per Share, issued by the Institute of Chartered Accountants of India. Earnings per equity share have been computed by dividing net profit after tax attributable to equity share holders by the weighted average number of equity share outstanding during the year. Diluted earnings during the year adjusted for effects of all dilutive potential equity shares per equity share is computed using the weighted average number of equity share and dilutive potential equity shares outstanding during the year.

12. Miscellaneous Expenditure

Miscellaneous Expenditure represents discount on issue of shares made during the year 2000- 2001.


Mar 31, 2009

1. Basis of Accounting

Financial statements are prepared and presented under the historical cost convention and in accordance with the applicable accounting standards to the extent possible.

2. Revenue Recognition

Income from Operations is recognized in the Profit & Loss Account on accrual basis as stated herein except in respect of such items as are specifically mentioned hereunder and in the notes.

a. Sales income is accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

b. Insurance claims are accounted as and when the claims are settled.

c. Interest due from growers for seed supplied is accounted as and when cane is received from growers.

d. Excise Duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses

3. Fixed Assets and Depreciation/Amortization

3.1. Fixed Assets:- These assets are stated at their original cost of acquisition (including expenditure for the acquisition and/or installation) less accumulated depreciation.

3.2. Depreciation on Fixed assets has been provided on straight-line method at rates prescribed under Schedule XIV to the Companies Act, 1956 as amended by notification dated 15.12.93 issued hereunder and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during the year is reckoned on a pro rata basis with reference to the month in which the fixed assets are put to use or commissioned.

Schedules to the Balance Sheet and Profit & Loss Account for the year ended 31.03.2009

4 Impairment of Fixed Assets

Wherever events of changes in circumstances indicate that the carrying value of fixed assets may be impaired, the Company subjects such assets to a test of recoverability, based on discounted cash flows expected from use or disposal thereof. If the assets are impaired, the Company recognizes as impairment loss as the difference between the carrying value and fair value less costs to sell. None of the Companys fixed assets are considered impaired as on the Balance Sheet date.

5 Capital Work in Progress

Capital work in progress is stated at cost and includes advance on account of Capital Equipment paid to the suppliers.

6. Prior Period and Extra Ordinary Items

Prior Period and Extra Ordinary Items having material impact on the financial affairs of the Company are disclosed.

7. Retirement and Other Benefits

7.1. The company accounts gratuity liability accounted as and when gratuity is paid to the employees.

7.2. Contribution to Provident Fund is made as per provisions of Employees Provident fund and Miscellaneous Provisions Act, 1952 and charges to Profit and Loss Account and disclosed separately.

7.3. Liability for leave encashment is provided as and when the leave encashment is paid to the employees.

8. Income Tax

The Income Tax liability is provided in accordance with the provisions of the Income tax Act 1961.

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

9. Segment Reporting

A. Business Segments:

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Companys business segments include Sugar and Industrial Alcohol Plant (IAP).

B. Segment accounting policies:

In addition to the significant accounting policies applicable to the business segments as given in notes, the accounting policies in relation to segment accounting are as under:

a) Segment revenue and expenses:

Common revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

b) Segment assets and liabilities:

Segmentassets includeall operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes, Share Capital, Loans, Investments, Miscellaneous Expenditure and Profit and Loss Appropriate Account. While most of the assets / liabilities can be directly attributed to the individual segments, the carrying amount of certain assets / liabilities pertaining to both segments are allocated to the segments on a reasonable basis.

10. Earning Per Share

The Company reports basic and diluted earnings per equity share in accordance with Accounting Standard - 20 Earnings per Share, issued by the Institute of Chartered Accountants of India. Earnings per equity share have been computed by dividing net profit after tax attributable to equity share holders by the weighted average number of equity share outstanding during the year. Diluted earnings during the year adjusted for effects of all dilutive potential equity shares per equity share is computed using the weighted average number of equity share and dilutive potential equity shares outstanding during the year.

11. Miscellaneous Expenditure

Miscellaneous Expenditure represents discount on issue of shares made during the year 2000-2001.


Jun 30, 2008

1. Basis of Accounting

Financial statements are prepared and presented under the historical cost convention and in accordance with the applicable accounting standards to the extent possible.

2. Revenue Recognition

Income from Operations is recognized in the Profit & Loss Account on accrual basis as stated herein except in respect of such items as are specifically mentioned hereunder and in the notes.

a. Sales income is accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

b. Insurance claims are accounted as and when the claims are settled.

c. Interest due from growers for seed supplied is accounted as and when cane is received from growers.

d. Excise Duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses

3. Fixed Assets and Depreciation/Amortization

3.1. Fixed Assets:- These assets are stated at their original cost of acquisition (including expenditure for the acquisition and/or installation) less accumulated depreciation.

3.2. Depreciation on Fixed assets has been provided on straight-line method at rates prescribed under Schedule XIV to the Companies Act, 1956 as amended by notification dated 15.12.93 issued hereunder and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during the year is reckoned on a pro rata basis with reference to the month in which the fixed assets are put to use or commissioned.

4. Impairment of Fixed Assets

Wherever events of changes in circumstances indicate that the carrying value of fixed assets may be impaired, the Company subjects such assets to a test of recoverability, based on discounted cash flows expected from use or disposal thereof. If the assets are impaired, the Company recognizes as impairment loss as the difference between the carrying value and fair value less costs to sell. None of the Companys fixed assets are considered impaired as on the Balance Sheet date.

5. Capital Work in Progress

Capital work in progress is stated at cost and includes advance on account of Capital Equipment paid to the suppliers.

6. Foreign Currency Transaction

Foreign exchange transactions are recorded at the exchange rates prevailing at the time of transaction. Assets and liabilities expressed in foreign currencies (to the extent not covered against exchange fluctuations) are translated into Indian Rupees at the exchange rate prevailing at the Balance Sheet date and any loss or gain arising there from has been included in Finance Charges as per the provision of Accounting Standard 16 and 11 issued by The Institute of Chartered Accountants of India.

7. Prior Period and Extra Ordinary Items

Prior Period and Extra Ordinary Items having material impact on the financial affairs of the Company are disclosed.

8. Retirement and Other Benefits

8.1. The company accounts gratuity liability as and when gratuity is paid to the employees.

8.2. Contribution to Provident Fund is made as per provisions of Employees Provident fund and Miscellaneous Provisions Act, 1952 and charged to Profit and Loss Account and disclosed separately.

8.3. Liability for leave encashment is provided as and when the leave encashment is paid to the employees.

9. Income Tax

The Income Tax liability is provided in accordance with the provisions of the Income tax Act 1961. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. 10. Segment Reporting

A. Business Segments:

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Companys business segments include Sugar and Industrial Alcohol Plant (IAP).

B. Segment accounting policies:

In addition to the significant accounting policies applicable to the business segments as given in notes, the accounting policies in relation to segment accounting are as under:

a) Segment revenue and expenses:

Common revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

b) Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes, Share Capital, Loans, Investments, Miscellaneous Expenditure and Profit and Loss Appropriate Account. While most of the assets / liabilities can be directly attributed to the individual segments, the carrying amount of certain assets / liabilities pertaining to both segments are allocated to the segments on a reasonable basis.

11. Earning Per Share

The Company reports basic and diluted earnings per equity share in accordance with Accounting Standard 20. Earnings per Share issued by the Institute of Chartered Accountants of India. Earnings per equity share have been computed by dividing net profit after tax attributable to equity share holders by the weighted average number of equity share outstanding during the year. Diluted earnings during the year adjusted for effects of all dilutive potential equity shares per equity share is computed using the weighted average number of equity share and dilutive potential equity shares outstanding during the year.

12. Miscellaneous Expenditure

Miscellaneous Expenditure represents discount on issue of shares made during the year 2000-2001.


Jun 30, 2007

I SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Accounting

Financial statements are prepared and presented under the historical cost convention and in accordance with the applicable accounting standards to the extent possible.

2. Revenue Recognition

Income from Operations is recognized in the Profit & Loss Account on accrual basis as stated herein except in respect of such items as are specifically mentioned hereunder and in the notes.

a. Sales income is accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

b. Insurance claims are accounted as and when the claims are settled.

c. Interest due from growers for seed supplied is accounted as and when cane is received from growers.

d. Excise Duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into "the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses

3. Fixed Assets and Depreciation/Amortization

3.1. Fixed Assets:- These assets are stated at their original cost of acquisition (including expenditure for the acquisition and/or installation) less accumulated depreciation.

3.2. Depreciation on Fixed assets has been provided on straight-line method at rates prescribed under Schedule XIV to the Companies Act, 1956 as amended by notification dated 15.12.93 issued hereunder and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during the year is reckoned on a pro rata basis with reference to the month in which the fixed assets are put to use or commissioned.

4. Impairment of Fixed Assets

Wherever events of changes in circumstances indicate that the carrying value of fixed assets may be impaired, the Company subjects such assets to a test of recoverability, based on discounted cash flows expected from use or disposal thereof. If the assets are impaired, the Company recognizes as impairment loss as the difference between the carrying value and fair value less costs to sell. None of the Companys fixed assets are considered impaired as on the Balance Sheet date.

5 Capital Work in Progress

Capital work in progress is stated at cost and includes advance on account of Capital Equipment paid to the suppliers.

6. Foreign Currency Transaction

Foreign exchange transactions are recorded at the exchange rates prevailing at the time of transaction. Assets and liabilities expressed in foreign currencies (to the extent not covered against exchange fluctuations) are translated into Indian Rupees at the exchange rate prevailing at the Balance Sheet date and any loss or gain arising there from has been included in Finance Charges as per the provision of Accounting Standard 16 and 11 issued by The Institute of Chartered Accountants of India.

7. Prior Period and Extra Ordinary Items

Prior Period and Extra Ordinary Items having material impact on the financial affairs of the Company are disclosed.

8. Retirement and Other Benefits

8.1.The company accounts gratuity liability accounted as and when gratuity is paid to the employees.

8.2.Contribution to Provident Fund is made as per provisions of Employees Provident fund and Miscellaneous Provisions Act, 1952 and charges to Profit and Loss Account and disclosed separately.

8.3.Liability for leave encashment is provided as and when the leave encashment is paid to the employees.

9. Income Tax

The Income Tax liability is provided in accordance with the provisions of the Income tax Act 1961.

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

10. Segment Reporting

A. Business Segments

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Companys business segments include Sugar and Industrial Alcohol Plant (IAP).

B. Segment accounting policies

In addition to the significant accounting policies applicable to the business segments as given in notes, the accounting policies in relation to segment accounting are as under:

a) Segment revenue and expenses

Common revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

b) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes, Share Capital, Loans, Investments, Miscellaneous Expenditure and Profit and Loss Appropriate Account. While most of the assets/liabilities can be directly attributed to the individual segments, the carrying amount of certain assets/liabilities pertaining to both segments are allocated to the segments on a reasonable basis.

11. Earning Per Share

The Company reports basic and diluted earnings per equity share in accordance with Accounting Standard - 20. Earnings per Share issued by the Institute of Chartered Accountants of India. Earnings per equity share have been computed by dividing net profit after - tax attributable to equity share holders by the weighted average number of equity share outstanding during the year. Diluted earnings during the year adjusted for effects of all dilutive potential equity shares per equity share is computed using the weighted average number of equity share and dilutive potential equity shares outstanding during the year.

12. Miscellaneous Expenditure

Miscellaneous Expenditure represents discount on issue of shares made during the year 2000-2001.


Jun 30, 2006

1. Basis of Accounting

Financial statements are prepared and presented under the historical cost convention and in accordance with the applicable accounting standards to the extent possible.

2. Revenue Recognition

Income from Operations is recognized in the Profit & Loss Account on accrual basis as stated herein except in respect of such items as are specifically mentioned hereunder and in the notes.

a. Sales income are accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

b. Insurance claims are accounted as and when the claims are settled.

c. Interest due from growers for seed supplied is accounted as and when cane is received from growers.

d. Excise Duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses

3. Fixed Assets and Depreciation/Amortization

3.1. Fixed Assets include assets for Financing Lease. These assets are stated at their original cost of acquisition (including expenditure for the acquisition and/or installation) less accumulated depreciation.

3.2. Depreciation on Fixed assets has been provided on straight-line method at rates prescribed under Schedule XIV to the Companies Act, 1956 as amended by notification dated 15.12.93 issued thereunder and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during the year is reckoned on a pro rata basis with reference to the month in which the fixed assets are put to use or commissioned.

4 Impairment of Fixed Assets

Wherever events of changes in circumstances indicate that the carrying value of fixed assets may be impaired, the Company subjects such assets to a test of recoverability, based on discounted cash flows expected from use or disposal thereof. If the assets are impaired, the Company recognizes as impairment loss as the difference between the carrying value and fair value less costs to sell. None of the Companys fixed assets are considered impaired as on the Balance Sheet date.

5 Capital Work in Progress

Capital work in progress is stated at cost and includes Capital advances paid to the suppliers.

6. Foreign Currency Transaction

6.1. Foreign exchange transactions are recorded at the exchange rates prevailing at the time of transaction.

6.2. Assets and liabilities expressed in foreign currencies (to the extent not covered against exchange fluctuations) are translated into Indian Rupees at the exchange rate prevailing at the Balance Sheet date and any loss or gain arising there from has been included in Finance Charges as per the provision of Accounting Standard 16 and 11 issued by The Institute of Chartered Accountants of India.

7. Prior Period and Extra Ordinary Items

Prior Period and Extra Ordinary Items having material impact on the financial affairs of the Company are disclosed.

8. Retirement and Other Benefits

8.1. The company accounts gratuity liability as and when gratuity is paid to the employees.

8.2. Contribution to Provident Fund is made as per provisions of Employees Provident fund and Miscellaneous Provisions Act, 1952 and charges to Profit and Loss Account and disclosed separately.

8.3. Liability for leave encashment is provided as and when the leave encashment is paid to the employees.

9. Income Tax

The Income Tax liability is provided in accordance with the provisions of the Income tax Act 1961. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

10. Segment Reporting A. Business Segments:

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Companys business segments include Sugar and Industrial Alcohol Plant (IAP).

B. Segment accounting policies:

In addition to the significant accounting policies applicable to the business segments as given in notes, the accounting policies in relation to segment accounting are as under:

a) Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

b) Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes, Share Capital, Loans, Investments, Miscellaneous Expenditure and Profit and Loss Appropriate Account. While most of the assets/liabilities can be directly attributed to the individual segments, the carrying amount of certain assets/liabilities pertaining to both segments are allocated to the segments on a reasonable basis.

c) Inter segment sales:

Inter segment sales between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

11. Earnings Per Share

The Company reports basic and diluted earnings per Equity Share in accordance with Accounting Standard-20, Earnings Per Share issued by the Institute of Chartered Accountants of India. Basic earnings per equity share have been computed by dividing net profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings during the year adjusted for effects of all dilutive potential equity shares per equity share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

12. Miscellaneous Expenditure

Miscellaneous Expenditure represents discount on issue of shares during the year 2001.


Jun 30, 2005

I. SIGNIFICANT ACCOUNTING POLICIES

1. Financial statements are prepared under the historical cost convention and in accordance with the applicable mandatory accounting standards to the extent feasible and are based on accrual basis of accounting, except in respect of such items as are specially mentioned hereunder and in the notes.

2. Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is calculated under the straight line method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956 as amended by notification dated 15.12.93 issued thereunder and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during the year is reckoned on a pro rata basis with reference to the month in which the fixed assets are put to use or commissioned.

3. Investments are stated at cost and interest thereon accounted on actual basis.

4. The quantum of additional cane price payable and purchase tax thereon, if any for a season on the basis of L factor will be accounted for as and when the L factor is announced by the Central Government.

5. Excise Duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/loss.

6. Sales are accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

7. Insurance claims are accounted as and when the claims are settled.

8. Interest on allotment money in arrears will be accounted as and when received.

9. Interest due from growers for seed supplied is accounted as and when received.

10. Interest for delayed payments to growers for cane supplied by them will be accorded as and when it become payable.


Mar 31, 2004

I. SIGNIFICANT ACCOUNTING POLICIES

1. Financial statements are prepared under the historical cost convention and in accordance with the applicable mandatory accounting standards to the extent feasible and are based on accrual basis of accounting, except in respect of such items as are specially mentioned hereunder and in the notes.

2. Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is calculated under the straight line method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956 as amended by notification dated 15.12.93 issued thereunder and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during the year is reckoned on a pro rata basis with reference to the month in which the fixed assets are put to use or commissioned.

3. Investments are stated at cost and interest thereon accounted on actual basis.

4. The quantum of additional cane price payable and purchase tax thereon, if any for a season on the basis of L factor will be accounted for as and when the L factor is announced by the Central Government.

5. Excise Duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses.

6. Sales are accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

7. Insurance claims are accounted as and when the claims are settled.

8. Interest on allotment money in arrears will be accounted as and when received.

9. Interest due from growers for seed supplied is accounted as and when received.

10. Interest for delayed payments to growers for cane supplied by them will be accorded as and when it becomes payable.


Mar 31, 2003

I. SIGNIFICANT ACCOUNTING POLICIES

1. Financial statements are prepared under the historical cost convention and in accordance with the applicable mandatory accounting standards to the extent feasible and are based on accrual basis of accounting, except in respect of such items as are specially mentioned hereunder and in the notes.

2. Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is calculated under the straight line method at the rates and in the manner prescribed under Schedule XIV of the Companies Act.1956 as amended by notification dated 15.12.93 issued there under and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during a year is reckoned on a pro rata basis with reference to the month in which the fixed assets are put to use or commissioned.

3. Preliminary and Public Issue expenses are amortised as per section 35D of the Income Tax Act, 1961.

4. Investments are stated at cost and interest thereon accounted on actual basis.

5. The quantum of additional cane price payable and purchase tax thereon, if any for a season on the basis of L factor will be accounted for as and when the L factor is announced by the Central Government.

6. Excise Duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time clearance of these goods. The accounting treatment will have no Impact on profit/losses.

7. Sales are accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

8. Insurance claims are accounted as and when the claims are settled.

9. Interest on allotment money in arrears will be accounted as and when received.

10. Interest due from growers for seed supplied is accounted as and when received.

11. Interest for delay payments to growers for cane supplied by them will be provided as and when it becomes payable.


Mar 31, 2002

1. Financial statements are prepared under the historical cost convention and in accordance with the applicable mandatory accounting standards to the extent feasible and are based on accrual basis of accounting, except in respect of such items as are specially mentioned hereunder and in the notes.

2. Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is calculated under the straight line method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956 as amended by notification dated 15.12.93 issued there under and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during a year is reckoned on a pro rata basis with reference to the month in which the fixed assets are put to use or commissioned.

3. Preliminary and Public Issue expenses are amortised as per section 35D of the Income Tax Act, 1961.

4. Investments are stated at cost and interest thereon accounted on actual basis.

5. The quantum of additional cane price payable and purchase tax thereon, if any for a season on the basis of L factor will be accounted for as and when the L factor is announced by the Central Government.

6. Excise Duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time clearance of these goods. The accounting treatment will have no impact on profit/losses.

7. Sales are accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

8. Insurance claims are accounted as and when the claims are settled.

9. Interest on allotment money in arrears will be accounted as and when received.

10. Interest due from growers for seed supplied is accounted as and when received.

11. Interest for delay payments to growers for cane supplied by them will be provided %as and when it becomes payable.


Mar 31, 2001

1. Financial statements are prepared under the historical cost convention and in accordance with the applicable mandatory accounting standards to the extent feasible and are based on accrual basis of accounting, except in respect of such items as are specially mentioned hereunder and in the notes.

2. Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is calculated under the straight line method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956 as amended by notification dated 15.12.93 issued thereunder and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during a year is reckoned on a pro rata basis with reference to the month in which the fixed assets are put to use or commissioned.

3. Preliminary and Public Issue expenses are amortised as per section 35D of the Income Tax Act, 1961.

4. Investments are stated at cost and interest thereon accounted on actual basis.

5. The quantum of additional cane price payable and purchase tax thereon, if any for a season on the basis of L factor will be accounted for as and when the L factor is announced by the Central Government.

6. Excise Duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time clearance of these goods. The accounting treatment will have no impact on profit/losses.

7. Sales are accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

8. Insurance claims are accounted as and when the claims are settled.

9. Interest on allotment money in arrears will be accounted as and when received.

10. Interest due from growers for seed supplied is accounted as and when received.

11. Interest for delay payments to growers for cane supplied by them will be provided as and when it becomes payable.


Mar 31, 2000

1. Financial statements are prepared under the historical cost convention and in accordance with the applicable mandatory accounting standards to the extent feasible and are based on accrual basis of accounting, except in respect of such items as are specially mentioned hereunder and in the notes.

2. Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is calculated under the straight line method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956 as amended by notification dated 15.12.93 issued there under and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during a year is reckoned on a pro rata basis with reference to the month in which the fixed assets are put to use or commissioned.

3. Preliminary and Public issued expenses are amortised as per Section 35D of the Income tax 1961.

4. Investments are stated at cost and interest thereon accounted on actual basis

5. The quantum of additional cane price payable and purchase tax thereon, if any for a season on the basis of L factor will be accounted for as and when the L factor is announced by the Central Government.

6. Excise duty payable on finished goods held in stock at the end of the accounting year (except Molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time clearance of these goods. The accounting treatment will have no impact on profit/loss.

7. Sales are accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts

8. Insurance claims are accounted as and when the claims are settled.

9. Interest on allotment money in areas will be accounted as and when received.

10. Interest due from ryots for seed supplied is accounted as and when received.

11. Interest for delay payments to ryots for cane supplied by them will be provided as and when it becomes payable.


Mar 31, 1999

I. SIGNIFICANT ACCOUNTING POLICIES

1. Financial statements are prepared under the historical cost convention and in accordance with the applicable mandatory accounting standards to the extent fesible and are based on accrual basis of accounting, except in respect of such items as are specially mentioned hereunder and in the notes.

2. Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is calculated under the straight line method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956 as amended by notification dated 15.12.93 issued thereunder and is provided in the accounts or shown as a note. Depreciation on addition to fixed assets during a year is reckoned on a prorata basis with reference to the month in which the fixed assets are put to use or commissioned.

3. Preliminary and Public issued expenses are amortised as per section 35D of the Income tax 1961.

4. Investments are stated at cost and interest thereon accounted on accrual basis.

5. The quantum of additional cane price payable and purchase tax thereon, if any, for a season on the basis of L factor will be accounted for as and when the L factor is announced by the Central Government.

6. Excise duty payable on finished goods held in stock at the end of the accounting year (except molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at

Year ended Period ended 31.03.99 31.03.98 (12 months) (18 months)

39,409 57,249

9.210 13,900

48,619 71,149

the time of clearance of these goods. The accounting treatment will have no impact on profit/losses.

7. Sales are accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

8. Insurance claims are accounted as and when the claims are settled.

9. Interest on allotment money in arrears will be accounted as and when received.

10. Interest due from ryots for seeds supplied is accounted as and when received.

11. Interest for delayed payments to ryots for cane supplied by them will be provided as and when it becomes payable.


Mar 31, 1998

1) Financial statements are prepared under the historical cost convention and in accordance with the applicable mandatory accounting standards and are based on accrual basis of accounting, except in respect of such items as are specifically mentioned hereunder and in notes nos 17, 21 and 26.

2) Fixed Assets are stated at cost of acquisition less depreciation. Depreciation is provided under the straight line method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956 as amended by notification dated 15.12.93 issued thereunder. Depreciation on addition to fixed assets during a year is charged on a prorate basis with reference to the month in which the fixed assets are put to use or commissioned.

3) Preliminary and public issue expenses are amortised as per Section 35D of the Income Tax Act, 1961. Cane development expense are amortised over a period of three years.

4) Investments are stated at cost and interest thereon accounted on accrual basis.

5) The quantum of additional cane price payable and purchase tax thereon, if any, for a season on the basis of L factor will be accounted for as and when the L factor is announced by the Central Government.

6) Excise duty payable on finished goods held in stock at the end of the accounting year (except molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses.

7) Sales are accounted inclusive of excise duty and sales tax wherever applicable but net of trade discounts.

8) Insurance claims are accounted as and when the claims are settled.

9) Interest on allotment money in arrears will be accounted as and when received.

10) Interest due from ryots for seeds supplied is accounted as and when received.


Sep 30, 1996

A) Financial statements are based on historical cost.

b) Income and expenditure are recognised on accrual basis except in respect of items mentioned hereunder.

c) Fixed Assets are stated at cost of acquisition less depreciation, Depreciation is provided under the Straight line method at the rates and in the manner prescribed under schedule XIV of the Companies Act, 1956 as amended by notification dated 15.12.93 issued thereunder. Depreciation on addition to fixed assets during a year is charged on a prorata basis with reference to the month in which the fixed assets are put to use or commissioned.

d) Preliminary and public issue expenses are amortised as per Section 35 D of the Income Tax Act 1961. Cane development expenses are amortised over a period of three years.

e) Investments are stated at cost and interest thereon accounted on accural basis.

f) The quantum of additional cane price payable, if any for a season on the basis of L factor will be accounted for as and when the L factor is announced by the Central Government.

g) Excise duty payable on finished goods held in stock at the end of the accounting year (except molasses stored in pit for which duty is paid as and when molasses are let into the pit) will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses.

h) Sales are accounted inclusive of excise duty and sales tax but net of trade discounts.

i) Insurance claims are accounted as and when the claims are settled.'

j) Sundry debtors are stated after providing for bad and doubtful debts.

k) Interest on allotment money in arrears will be accounted as and when received.

l) Interest due from ryots for seeds supplies is accounted as and when collected.


Sep 30, 1995

A) Financial statements are based on historical cost.

b) Income and expenditure are recognised on accrual basis except in respect of items mentioned hereunder.

c) Fixed assets are stated at cost of acquisition less depreciation. Depreciation is provided under the Straight line method at the rates and in the manner prescribed under schedule XIV of the Companies Act, 1956 as amended by notification dated 15.12.93 issued there under. Depreciation on addition to fixed assets during the year is charged on a prorata basis with reference to the month in which the fixed assets are put to use or commissioned.

d) Preliminary and public issue expenses are amortised as per Section 35 D of the Income Tax Act 1961. Cane development expenses are amortised over a period of three years.

e) Investments are stated at cost and interest thereon accounted on accrual basis.

f) The quantum of additional cane price payable, if any for a season on the basis of L factor will be accounted for as and when the L factor is announced by the Central Government.

g) Excise duty payable on finished goods held in stock at the end of the accounting year will be accounted for at the time of clearance of these goods. The accounting treatment will have no impact on profit/losses.

h) Sales are accounted inclusive of excise duty and sales tax but net of trade discounts.

i) Insurance claims are accounted as and when the claims are settled.

j) Sundry debtors are stated after providing for bad and doubtful debts.

k) Interest on allotment money in arrears will be accounted as and when received.

l) Interest due from ryots for seeds supplies is accounted as and when collected.


Sep 30, 1994

A) Financial statements are based on historical cost.

b) Income and expenditure are recognised on accrued basis except in respect of items mentioned hereunder.

c) Fixed assets are stated at cost of acquisition (inclusive of cost of additions/improvements thereto) less depreciation. Depreciation is provided under straight line method at the revised rates as per notification No.GSR756 E dated 16.12.93, treating the industry as a continuous process Industry. Depreciation has been calculated by allocating the unamortized value of the assets as on 1.4.93 over the remaining part of the recomputed specified period. Depreciation on addition to fixed assets during the year is charged on a pro rata basis with reference to the month in which the fixed asset is put to use or commissioned.

d) Preliminary and public issue expenses are amortised as per Sec,35D of the Income tax Act, 1961.

e) Investments are stated at cost and interest thereon accounted on accrual basis.

f) The quantum of additional cane price payable, if any for a season on the basis of L factor will be accounted for as and when the `L factor' is announced by the Central Government.

g) Excise duty payable on finished goods held in stock at the end of accounting year will be accounted for at the time of clearance of these goods. This accounting treatment will have no impact on profits/losses.

h) Sales are accounted inclusive of excise duty, sales tax and trade discounts.

i) Insurance claims are accounted as and when the claim are settled

j) Sundry Debtors are stated after providing for bad and doubtful debts.

k) Interest on allotment money in arrears will be accounted as and when received.


Mar 31, 1993

A) Financial statements are based on historical cost

b) Income and expenditure are recognised on accrued basis except in respect of items mentioned hereunder.

c) Fixed assets are stated at cost of acquisition (inclusive of cost of additions/improvements thereto) less depreciation. Depreciation is provided under straight line method in accordance with and at the rates prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on addition to fixed assets during the year is charged on prorata basis with reference to the month in which the fixed asset is put to use or commissioned.

d) Preliminary and Public issue expenses are amortised as per Sec. 35D of the Income Tax Act, 1961.

e) Investments are stated at cost and interest thereon accounted on accrual basis.

f) Cane development expenses (inclusive of subsidies) are amortised over a period of 3 years.

g) Inventory of raw materials, stores and spares are valued at cost on the basis of last purchase price and inventory of finished goods and stocks in process are valued at lower of cost or net realisable value.

h) The quantum of additional cane price payable, it any, for a season on the basis of 'L factor' will be accounted for as and when the 'L factor' is announced by the Central Government.

i) Excise Duty payable on finished goods held in stock at the end of the accounting year will be accounted for at the time of clearance of these goods. This accounting treatment will have no impact on profits/losses.

j) Sales are accounted inclusive of excise duty, sales tax and trade discounts.

k) Insurance claim are accounted as and when the claims are settled.

i) Sundry Debtors are stated after providing for bad and doubtful debts.

m) Interest on allotment money in arrears will be accounted as and when received.

n) The expenditure incurred upto the date of commencement of production has been cspitalised and added proportionately to buildings, machinery and electrical installation on the basis of their cost.


Mar 31, 1992

Fixed assets are stated at cost of acquisition and subsequent improvement thereto. Depreciation is provided under straight line method in accordance with Schedule XIV of the Companies Act, 1956. In respect of additions, depreciation is charged on a pro-rata basis except that the period from which the fixed assets are put to use is rounded off to the nearest month.

In respect of the current accounting year, though trial runs commenced on 22-3-92 no depreciation has been provided on the fixed assets which were put to trial runs as these assets were not fully ready for commercial operations till 8th April, 1992.

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