Mar 31, 2015
1. General
The financial statements are prepared under historical cost convention
on accrual basis of accounting and in accordance with the Generally
Accepted Accounting Principles in India. The financial statements are
prepared to comply in all material respects with the Accounting
Standards as prescribed under Section 133 of the Companies Act, 2013
('Act') read with Rule 7 of Companies (Accounts) Rules, 2014, the
pronouncements of the Institute of Chartered Accountants of India, the
relevant provisions of the Companies Act, 2013 and Companies Act, 1956
to the extent applicable and guidelines issued by the Securities and
Exchange Board of India. The Accounting policies have been consistently
applied except where a newly issued Accounting Standard is initially
adopted or a revision to an existing Accounting Standard or amendments
to the provisions of any statue which requires a change in the
accounting policy hitherto in use.
2. Use of Estimates
The preparation of the financial statements requires management of the
Company to make judgments, estimates and assumptions that affect the
reported amounts of assets and liabilities, revenues and expenses and
disclosures relating to the contingent liabilities and commitments.
Examples of such estimates include provisions for provisions for
doubtful debts and advances, employee benefit plans, useful lives of
fixed assets and provisions for impairment. The management believes that
the estimates used in preparation of the financial statements are
prudent and reasonable.
The judgments, estimates and underlying assumptions are made with the
management's best knowledge of the business environment and are
reviewed on an ongoing basis. However, future results could differ from
these estimates. Any revision to accounting estimates is recognized
prospectively in the current and future periods.
3. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. Cost of
acquisition of fixed assets is inclusive of directly attributable cost
of bringing the assets to their working condition for the intended use.
CENVAT/VAT availed, if any, on fixed assets is not included in the cost
of such fixed assets capitalized.
4. BORROWING COSTS
Borrowing costs incurred in connection with the funds borrowed for
acquisition of assets that takes necessarily substantial period of time
to get ready for intended use are capitalized as part of cost of such
assets. All other borrowing costs are charged to revenue.
5. DEPRECIATION
Consequent to the applicability of Schedule ÂII of the Companies Act,
2013 w.e.f 1.4.2014, the company has computed depreciation based on the
useful lives as specified in Schedule II of Companies Act, 2013 under
straight line method. Accordingly the carrying amount of tangible fixed
assets on 1.4.2014 is being depreciated over the remaining useful life
of the assets as specified under schedule-II. The written down value of
fixed assets whose lives have expired on 1.4.2014 amounting to Rs.66.95
lakhs have been adjusted against opening balance of general reserves.
6. INVESTMENTS
Investments are classified as current or non-current based on the
managements intention at the time of investment. Long-term investments
are stated at cost. Provision for diminution in the value of
investments is made only if such decline is permanent in nature.
7. INVENTORIES
Inventories are valued as follows :
a) Finished goods are valued at lower of cost and net realizable value.
Molasses, a by-product is valued at the ruling market price.
b) Raw materials and stores and spares are valued at cost. However,
materials and other items which are held for use in the production of
finished goods is valued at below its cost if the finished goods in which
they will be incorporated are expected to be sold below its cost.
c) In respect of Work-in-progress and finished goods, cost includes all
direct costs and applicable production overheads incurred in bringing
such inventories to their present location and condition. Cost of
finished goods includes excise duty.
d) The Additional cane price payable for a season on the basis of "L"
factor will be accounted for in the year in which the "L" factor is
announced by the Central Government.
8. REVENUE RECOGNITION :
Revenue is recognized to the extent that it is probable that the
economic benefits will fow to the company and the revenue can be
reliably measured.
a) Revenue from sale of products is recognized when the risks and
rewards of ownership are transferred to the buyer under the terms of
the contract which usually coincide on the dispatch of goods to the
customer or when they are unconditionally appropriated under the terms
of sale.
b) Sales include packing charges, freight and handling charges and are
stated net of trade discounts and sales tax.
c) Interest on investments and deposits is booked on a time proportion
basis taking into account the amounts invested and the rate of
interest.
9. RETIREMENT BENEFITS
The company provides retirement benefit in the form of provident fund
and group gratuity. Contributions to the Provident Fund, a defend
contribution scheme, is made at the prescribed rates to the provident
fund commissioner and is charged to the Profit and Loss account. There
is no other obligation other than the contribution payable.
The company's liability for group gratuity on retirement of its
eligible employees is funded with LIC through an approved trust, under
a defend benefit plan. The incremental expense thereon for each year is
arrived at as per actuarial valuation and is recognized and charged to
the Profit and Loss account in the year in which the employee has
rendered service.
Expenses on account of unutilized and unencashed leave which is
unfunded is arrived at as per actuarial valuation and is accounted
based on actual liability at the end of each year.
Gains/losses arrived at on actuarial valuation are charged to the Profit
& Loss account immediately in each year.
10. FOREIGN CURRENCY TRANSACTIONS
i) Foreign Currency Liability contracted for acquiring Fixed Assets are
restated at the Foreign Exchange rates prevailing at the year end and
all exchange differences arising as a result of such restatement are
charged to the Profit and loss account.
ii) Transactions in foreign currency are initially accounted at the
exchange rate prevailing on the date of transaction, and adjusted
appropriately, with the difference in the rate of exchange arising on
actual receipt/payment during the year.
iii) At each balance sheet date
- Foreign Currency monetary items are reported using the rate of
exchange on that date
- Foreign Currency non-monetary items are reported using the exchange
rate at which they were initially recognized.
In respect of forward exchange contracts in the nature of hedges
- Premium or discount on the contract is amortized over the term of the
contract
-Exchange differences on the contract are recognized as Profit or loss
in the period in which they arise.
11. TAXES ON INCOME
Current tax is determined as per provisions of Income Tax Act, 1961 in
respect of Taxable Income for the year.
Deferred tax liability is recognized, subject to the consideration of
prudence 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 assets arising on account of brought forward losses and
unabsorbed depreciation as per Income-tax laws are recognized only when
there is virtual certainty supported by convincing evidence that such
assets will be realized. Deferred tax assets arising on other temporary
differences are recognized only if there is a reasonable certainty of
realization.
12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made. Provisions are not discounted to their present
value and are determined based on the best estimate required to settle
the obligation at the reporting date. These estimates are reviewed at
each reporting date and adjusted to reflect the current best estimates.
Contingent liability is disclosed for (i) Possible obligation 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 outfow of resources will be required to
settle the obligation or a reliable estimate of the amount of the
obligation cannot be made. The company does not recognize contingent
liabilities but the same are disclosed in the Notes.
Contingent assets are not recognized in the financial statements since
this may result in the recognition of income that may never be
realized.
13. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net Profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average numbers of equity shares outstanding during the period
are adjusted for events of bonus issue.
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.
14. SEGMENT REPORTING
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company, with the following additional
policies for segment reporting:
(i) Inter segment revenue has been accounted for based on the
transaction price agreed to between segments which is primarily market
led.
(ii) Revenue and expenses have been identified to segments on the basis
of their relationship to the operating activities of the segment.
(iii) Revenue and expenses, which relate to the enterprise as a whole
and are not allocable to segments on a reasonable basis, have been
included under " Unallocated Corporate Expenses".
15.IMPAIRMENT OF ASSETS
As at each balance sheet date, the carrying amount of assets is tested
for impairment so as to determine :
a. The provision for impairment loss, if any, required or
b. The reversal, if any, required of impairment loss recognized in
previous periods.
Mar 31, 2014
1. General
The Company has prepared the financial statements on a going concern
basis under the historical cost convention on accrual basis of
accounting and in accordance with generally accepted accounting
practices in India. The financial statements are prepared to comply in
all material respects with the Accounting Standards notified under
section 211(3C) of the Companies Act, 1956, the pronouncements of the
Institute of Chartered Accountants of India and all the relevant
provisions of Companies Act, 1956.
The accompanying financial statements has been presented for the year
ended 31st March, 2014 along with the comparative information for 6
months financial period ended 31st March, 2013.
2. Use of Estimates
The preparation of the financial statements requires the management of
the Company to make judgments, estimates and assumptions that affect
the reported amounts of assets and liabilities, revenues and expenses
and disclosures relating to the contingent liabilities and commitments.
The management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. The judgments,
estimates and underlying assumptions are made with the management''s
best knowledge of the business environment and are reviewed on an
ongoing basis. However, future results could differ from these
estimates. Any revision to these accounting estimates is recognised
prospectively in the current and future periods.
3. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. Cost of
acquisition of fixed assets is inclusive of directly attributable cost
of bringing the assets to their working condition for the intended use.
CENVAT/VAT availed, if any, on fixed assets is not included in the cost
of such fixed assets capitalized. Interest on borrowings incurred upto
the date of commissioning of assets are capitalized.
4. BORROWING COSTS
Borrowing costs incurred in connection with the funds borrowed for
acquisition of assets that takes necessarily substantial period of time
to get ready for intended use are capitalized as part of cost of such
assets. All other borrowing costs are charged to revenue.
5. DEPRECIATION
Depreciation is provided at applicable rates and at the manner provided
in Schedule XIV of the Companies Act, 1956. Depreciation in respect of
Plant and machinery at Co-generation unit, VVS Sugars and Distillery
unit at Chagallu is written off on Straight Line Method at applicable
rates prescribed in Scheduled XIV of the Companies Act, 1956. In
respect of other assets, depreciation is provided under written down
value method.
6. INVESTMENTS
Investments are classified as current or non-current based on the
managements intention at the time of investment. Long-term investments
are stated at cost. Provision for diminution in the value of
investments is made only if such decline is permanent in nature.
7. INVENTORIES
Inventories are valued as follows :
a) Finished goods are valued at lower of cost and net realizable value.
Molasses, a by-product is valued at the ruling market price.
b) Raw materials and stores and spares are valued at cost. However,
materials and other items which are held for use in the production of
finished goods is valued at below its cost if the finished goods in
which they will be incorporated are expected to be sold below its cost.
c) In respect of Work-in-progress and finished goods, cost includes all
direct costs and applicable production overheads incurred in bringing
such inventories to their present location and condition. Cost of
finished goods includes excise duty.
d) The Additional cane price payable for a season on the basis of "L"
factor will be accounted for in the year in which the "L" factor is
announced by the Central Government.
8. REVENUE RECOGNITION :
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
a) Revenue from sale of products is recognized when the risks and
rewards of ownership are transferred to the buyer under the terms of
the contract which usually coincide on the dispatch of goods to the
customer or when they are unconditionally appropriated under the terms
of sale.
b) Sales include packing charges, freight and handling charges and are
stated net of trade discounts and sales tax.
c) Interest on investments and deposits is booked on a time proportion
basis taking into account the amounts invested and the rate of
interest.
9. RETIREMENT BENEFITS
The company provides retirement benefit in the form of provident fund
and group gratuity. Contributions to the Provident Fund, a defined
contribution scheme, is made at the prescribed rates to the provident
fund commissioner and is charged to the Profit and Loss account. There
is no other obligation other than the contribution payable.
The company''s liability for group gratuity on retirement of its
eligible employees is funded with LIC through an approved trust, under
a defined benefit plan. The incremental expense thereon for each year
is arrived at as per actuarial valuation and is recognized and charged
to the Profit and Loss account in the year in which the employee has
rendered service.
Expenses on account of unutilized and unencashed leave which is
unfunded is arrived at as per actuarial valuation and is accounted
based on actual liability at the end of each year.
Gains/losses arrived at on actuarial valuation are charged to the
Profit and Loss account immediately in each year.
10. FOREIGN CURRENCY TRANSACTIONS
i) Foreign Currency Liability contracted for acquiring Fixed Assets are
restated at the Foreign Exchange rates prevailing at the year end and
all exchange differences arising as a result of such restatement are
charged to the Profit and Loss account.
ii) Transactions in foreign currency are initially accounted at the
exchange rate prevailing on the date of transaction, and adjusted
appropriately, with the difference in the rate of exchange arising on
actual receipt/payment during the year.
iii) At each balance sheet date
-Foreign Currency monetary items are reported using the rate of
exchange on that date -Foreign Currency non-monetary items are reported
using the exchange rate at which they were initially recognized.
In respect of forward exchange contracts in the nature of hedges
-Premium or discount on the contract is amortized over the term of the
contract
-Exchange differences on the contract are recognized as profit or loss
in the period in which they arise.
11. TAXES ON INCOME
Current tax is determined as per provisions of Income Tax Act, 1961 in
respect of Taxable Income for the year.
Deferred tax liability is recognized, subject to the consideration of
prudence 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 assets arising on account of brought forward losses and
unabsorbed depreciation as per Income-tax laws are recognized only when
there is virtual certainty supported by convincing evidence that such
assets will be realized. Deferred tax assets arising on other temporary
differences are recognized only if there is a reasonable certainty of
realization.
12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made. Provisions are not discounted to their present
value and are determined based on the best estimate required to settle
the obligation at the reporting date. These estimates are reviewed at
each reporting date and adjusted to reflect the current best estimates.
Contingent liability is disclosed for (i) Possible obligation 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. The company does not recognise contingent
liabilities but the same are disclosed in the Notes.
Contingent assets are not recognized in the financial statements since
this may result in the recognition of income that may never be
realised.
13. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. The
weighted average numbers of equity shares outstanding during the year
are adjusted for events of bonus issue.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
14. SEGMENT REPORTING
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company, with the following additional
policies for segment reporting:
(i) Inter segment revenue has been accounted for based on the
transaction price agreed to between segments which is primarily market
led.
(ii) Revenue and expenses have been identified to segments on the basis
of their relationship to the operating activities of the segment.
(iii) Revenue and expenses, which relate to the enterprise as a whole
and are not allocable to segments on a reasonable basis, have been
included under "Unallocated Corporate Expenses".
15. IMPAIRMENT OF ASSETS
As at each balance sheet date, the carrying amount of assets is tested
for impairment so as to determine :
a. The provision for impairment loss, if any, required or
b. The reversal, if any, required of impairment loss recognized in
previous year. Impairment loss is recognized when the carrying amount
of an asset exceeds its recoverable amount.
Mar 31, 2013
1. General
The Company has prepared the financial statements on a going concern
basis under the historical cost convention on accrual basis of
accounting and in accordance with generally accepted accounting
practices in India. The financial statements are prepared to comply in
all material respects with the Accounting Standards notified under
section 211(3C) of the Companies Act, 1956, the pronouncements of the
Institute of Chartered Accountants of India and all the relevant
provisions of Companies Act, 1956.
The accompanying financial statements has been presented for 6 months
period ended 31st March , 2013 along with the comparative information
for 18 months financial period ended 30th September, 2012
2. Use of Estimates
The preparation of the financial statements requires the management of
the Company to make judgments, estimates and assumptions that affect
the reported amounts of assets and liabilities, revenues and expenses
and disclosures relating to the contingent liabilities and commitments.
The management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. The judgments,
estimates and underlying assumptions are made with the management''s
best knowledge of the business environment and are reviewed on an
ongoing basis. However, future results could differ from these
estimates. Any revision to these accounting estimates is recognised
prospectively in the current and future periods.
3. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. Cost of
acquisition of fixed assets is inclusive of directly attributable cost
of bringing the assets to their working condition for the intended use.
CENVAT/VAT availed, if any, on fixed assets is not included in the cost
of such fixed assets capitalized. Interest on borrowings incurred upto
the date of commissioning of assets are capitalized.
4. BORROWING COSTS
Borrowing costs incurred in connection with the funds borrowed for
acquisition of assets that takes necessarily substantial period of time
to get ready for intended use are capitalized as part of cost of such
assets. All other borrowing costs are charged to revenue.
5. DEPRECIATION
DeDepreciation is provided at applicable rates and at the manner
provided in Schedule XIV of the Companies Act, 1956. Depreciation in
respect of Plant and machinery at Co-generation unit, VVS Sugars and
Distillery unit at Chagallu is written off on Straight Line Method at
applicable rates prescribed in Scheduled XIV of the Companies Act,
1956. In respect of other assets, depreciation is provided under
written down value method.
6. INVESTMENTS
Investments are classified as current or non-current based on the
managements intention at the time of investment. Long-term investments
are stated at cost. Provision for diminution in the value of
investments is made only if such decline is permanent in nature.
7. INVENTORIES
Inventories are valued as follows :
a) Finished goods are valued at lower of cost and net realizable value.
Molasses, a by-product is valued at the ruling market price.
b) Raw materials and stores and spares are valued at cost. However,
materials and other items which are held for use in the production of
finished goods is valued at below its cost if the finished goods in
which they will be incorporated are expected to be sold below its cost.
c) In respect of Work-in-progress and finished goods, cost includes all
direct costs and applicable production overheads incurred in bringing
such inventories to their present location and condition. Cost of
finished goods includes excise duty.
d) The Additional cane price payable for a season on the basis of "L"
factor will be accounted for in the year in which the "L" factor is
announced by the Central Government.
8. REVENUE RECOGNITION :
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
a) Revenue from sale of products is recognized when the risks and
rewards of ownership are transferred to the buyer under the terms of
the contract which usually coincide on the dispatch of goods to the
customer or when they are unconditionally appropriated under the terms
of sale.
b) Sales include packing charges, freight and handling charges and are
stated net of trade discounts and sales tax.
c) As followed consistently, the Off-season expenses relating to Sugar
unit are deferred and absorbed over the duration of the ensuing
crushing season.
d) Interest on investments and deposits is booked on a time proportion
basis taking into account the amounts invested and the rate of
interest.
9. RETIREMENT BENEFITS
The company provides retirement benefit in the form of provident fund
and group gratuity. Contributions to the Provident Fund, a defined
contribution scheme, is made at the prescribed rates to the provident
fund commissioner and is charged to the Profit and Loss account. There
is no other obligation other than the contribution payable.
The company''s liability for group gratuity on retirement of its
eligible employees is funded with LIC through an approved trust, under
a defined benefit plan. The incremental expense thereon for each year
is arrived at as per actuarial valuation and is recognized and charged
to the Profit and Loss account in the year in which the employee has
rendered service.
Expenses on account of unutilized and unencashed leave which is
unfunded is arrived at as per actuarial valuation and is accounted
based on actual liability at the end of each year.
Gains/losses arrived at on actuarial valuation are charged to the P&L
account immediately in each year.
10. FOREIGN CURRENCY TRANSACTIONS
i) Foreign Currency Liability contracted for acquiring Fixed Assets are
restated at the Foreign Exchange rates prevailing at the year end and
all exchange differences arising as a result of such restatement are
charged to the Profit and loss account.
ii) Transactions in foreign currency are initially accounted at the
exchange rate prevailing on the date of transaction, and adjusted
appropriately, with the difference in the rate of exchange arising on
actual receipt/payment during the year.
iii) At each balance sheet date
-Foreign Currency monetary items are reported using the rate of
exchange on that date
-Foreign Currency non-monetary items are reported using the exchange
rate at which they were initially recognized.
In respect of forward exchange contracts in the nature of hedges
-Premium or discount on the contract is amortized over the term of the
contract
-Exchange differences on the contract are recognized as profit or loss
in the period in which they arise.
11. TAXES ON INCOME
Current tax is determined as per provisions of Income Tax Act, 1961 in
respect of Taxable Income for the year.
Deferred tax liability is recognized, subject to the consideration of
prudence 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 assets arising on account of brought forward losses and
unabsorbed depreciation as per Income-tax laws are recognized only when
there is virtual certainty supported by convincing evidence that such
assets will be realized. Deferred tax assets arising on other temporary
differences are recognized only if there is a reasonable certainty of
realization.
12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made. Provisions are not discounted to their present
value and are determined based on the best estimate required to settle
the obligation at the reporting date. These estimates are reviewed at
each reporting date and adjusted to reflect the current best estimates.
Contingent liability is disclosed for (i) Possible obligation 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. The company does not recognise contingent
liabilities but the same are disclosed in the Notes.
Contingent assets are not recognized in the financial statements since
this may result in the recognition of income that may never be
realised.
13. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average numbers of equity shares outstanding during the period
are adjusted for events of bonus issue.
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.
14. SEGMENT REPORTING
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company, with the following additional
policies for segment reporting:
(i) Inter segment revenue has been accounted for based on the
transaction price agreed to between segments which is primarily market
led.
(ii) Revenue and expenses have been identified to segments on the basis
of their relationship to the operating activities of the segment.
(iii) Revenue and expenses, which relate to the enterprise as a whole
and are not allocable to segments on a reasonable basis, have been
included under "Unallocated Corporate Expenses".
15. IMPAIRMENT OF ASSETS
As at each balance sheet date, the carrying amount of assets is tested
for impairment so as to determine :
a. The provision for impairment loss, if any, required or
b. The reversal, if any, required of impairment loss recognized in
previous periods.
Impairment loss is recognized when the carrying amount of an asset
exceeds its recoverable amount.
Sep 30, 2012
1. General
The Company has prepared the financial statements on a going concern
basis under the historical cost convention on accrual basis of
accounting and in accordance with generally accepted accounting
practices in India. The financial statements are prepared to comply in
all material respects with the Accounting Standards notified under
section 211(3C) of the Companies Act, 1956, the pronouncements of the
Institute of Chartered Accountants of India and all the relevant
provisions of Companies Act, 1956.
The accompanying financial statements has been presented for 18 months
period ended 30th September, 2012 along with the comparative
information for financial year ended 31st March, 2011.
2. Use of Estimates
The preparation of the financial statements requires the management of
the Company to make judgments, estimates and assumptions that affect
the reported amounts of assets and liabilities, revenues and expenses
and disclosures relating to the contingent liabilities and commitments.
The management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. The judgments,
estimates and underlying assumptions are made with the management''s
best knowledge of the business environment and are reviewed on an
ongoing basis. However, future results could differ from these
estimates. Any revision to these accounting estimates is recognised
prospectively in the current and future periods.
3. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. Cost of
acquisition of fixed assets is inclusive of directly attributable cost
of bringing the assets to their working condition for the intended use.
CENVAT/VAT availed, if any, on fixed assets is not included in the cost
of such fixed assets capitalized. Interest on borrowings incurred upto
the date of commissioning of assets are capitalized.
4. BORROWING COSTS
Borrowing costs incurred in connection with the funds borrowed for
acquisition of assets that takes necessarily substantial period of time
to get ready for intended use are capitalized as part of cost of such
assets. All other borrowing costs are charged to revenue.
5. DEPRECIATION
Depreciation is provided at applicable rates and at the manner provided
in Schedule XIV of the Companies Act, 1956. Depreciation in respect of
Plant and machinery at Co-generation unit, WS Sugars and Distillery
unit at Chagallu is written off on Straight Line Method at applicable
rates prescribed in Scheduled XIV of the Companies Act, 1956. In
respect of other assets, depreciation is provided under written down
value method.
6. INVESTMENTS
Investments are classified as current or non-current based on the
managements intention at the time of investment. Long-term investments
are stated at cost. Provision for dimunition in the value of
investments is made only if such decline is permanent in nature.
7. INVENTORIES
Inventories are valued as follows :
a) Finished goods are valued at lower of cost and net realizable value.
Molasses, a by-product is valued at the ruling market price.
b) Raw materials and stores and spares are valued at cost. However,
materials and other items which are held for use in the production of
finished goods is valued at below its cost if the finished goods in
which they will be incorporated are expected to be sold below its cost.
c) In respect of Work-in-progress and finished goods, cost includes all
direct costs and applicable production overheads incurred in bringing
such inventories to their present location and condition. Cost of
finished goods includes excise duty.
d) The Additional cane price payable for a season on the basis of "L"
factor will be accounted for in the year in which the "L" factor is
announced by the Central Government.
8. REVENUE RECOGNITION :
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
a) Revenue from sale of products is recognised when the risks and
rewards of ownership are transferred to the buyer under the terms of
the contract which usually coincide on the dispatch of goods to the
customer or when they are unconditionally appropriated under the terms
of sale.
b) Sales include packing charges, freight and handling charges and are
stated net of trade discounts and sales tax.
c) As followed consistently, the Off-season expenses relating to Sugar
unit are deferred and absorbed over the duration of the ensuing
crushing season.
d) Interest on investments and deposits is booked on a time proportion
basis taking into account the amounts invested and the rate of
interest.
9. RETIREMENT BENEFITS
The company provides retirement benefit in the form of provident fund
and group gratuity. Contributions to the Provident Fund, a defined
contribution scheme, is made at the prescribed rates to the provident
fund commissioner and is charged to the Profit and Loss account. There
is no other obligation other than the contribution payable. ''
The company''s liability for group gratuity on retirement of its
eligible employees is funded with LIC through an approved trust, under
a defined benefit plan. The incremental expense thereon for each year
is arrived at as per actuarial valuation and is recognized and charged
to the Profit and Loss account in the year in which the employee has
rendered service.
Expenses on account of unutilized and unencashed leave which is
unfunded is arrived at as per actuarial valuation and is accounted
based on actual liability at the end of each year.
Gains/losses arrived at on actuarial valuation are charged to the
Profit and Loss account immediately in each year.
10. FOREIGN CURRENCY TRANSACTIONS
i) Foreign Currency Liability contracted for acquiring Fixed Assets are
restated at the Foreign Exchange rates prevailing at the year end and
all exchange differences arising as a result of such restatement are
charged to the Profit and loss account.
ii) Transactions in foreign currency are initially accounted at the
exchange rate prevailing on the date of transaction, and adjusted
appropriately, with the difference in the rate of exchange arising on
actual receipt/payment during the year.
iii) At each balance sheet date
- Foreign Currency monetary items are reported using the rate of
exchange on that date.
- Foreign Currency non-monetary items are reported using the exchange
rate at which they were initially recognized.
In respect of forward exchange contracts in the nature of hedges.
- Premium or discount on the contract is amortized over the term of the
contract.
- Exchange differences on the contract are recognized as profit or loss
in the period in which they arise.
11. TAXES ON INCOME
Current tax is determined as per provisions of Income Tax Act, 1961 in
respect of Taxable Income for the year.
Deferred tax liability is recognized, subject to the consideration of
prudence 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 assets arising on account of brought forward losses and
unabsorbed depreciation as per Income-tax laws are recognized only when
there is virtual certainty supported by convincing evidence that such
assets will be realized. Deferred tax assets arising on other temporary
differences are recognized only if there is a reasonable certainty of
realization.
12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions are recognised only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made. Provisions are not discounted to their present
value and are determined based on the best estimate required to settle
the obligation at the reporting date. These estimates are reviewed at
each reporting date and adjusted to reflect the current best estimates.
Contingent liability is disclosed for (i) Possible obligation 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. The company does not recognise contingent
liabilities but the same are disclosed in the Notes.
Contingent assets are not recognised in the financial statements since
this may result in the recognition of income that may never be
realised.
13. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average numbers of equity shares outstanding during the period
are adjusted for events of bonus issue.
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.
14. SEGMENT REPORTING
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company, with the following additional
policies for segment reporting:
(i) Inter segment revenue has been accounted for based on the
transaction price agreed to between segments which is primarily market
led.
(ii) Revenue and expenses have been identified to segments on the basis
of their relationship to the operating activities of the segment.
(iii) Revenue and expenses, which relate to the enterprise as a whole
and are not allocable to segments on a reasonable basis, have been
included under "Unallocated Corporate Expenses".
15. IMPAIRMENT OF ASSETS
As at each balance sheet date, the carrying amount of assets is tested
for impairment so as to determine:
a. The provision for impairment loss, if any, required or
b. The reversal, if any, required of impairment loss recognized in
previous periods.
Impairment loss is recognized when the carrying amount of an asset
exceeds its recoverable amount.
Mar 31, 2011
1. GENERAL:
Financial statements are prepared under the historical cost convention
and in accordance with the generally accepted accounting practices.
2. FIXED ASSETS:
Fixed Assets are stated at cost less accumulated depreciation. Cost of
acquisition of fixed assets is inclusive of freight, duties, incidental
expenses relating to the cost of acquisition, and the cost of
installation/erection as applicable and interest on borrowings till
date of the commissioning of the Assets.
MODVAT availed, if any during the year on fixed assets is reduced from
the cost of such fixed assets capitalised during the year.
3. BORROWING COSTS :
Borrowing costs that are directly attributable to the acquisition,
construction or production of assets that necessarily take a
substantial period of time to get ready for their intended use or sale
are capitalized as part of cost of such assets. Other borrowing costs
are recognized as an expense in the period in which they are incurred.
4. DEPRECIATION :
Depreciation is written off in accordance with the provisions of
schedule XIV of the Companies Act, 1956, read with Circular No. 1 of
1986 dated 21-5-1986 issued by the Company Law Board. Depreciation in
respect of Plant & Machinery at Cogeneration unit, WS Sugars, Chagallu
and Distillery Division at Chagallu is written off under straight-line
method and in respect of all other assets under written down value
method.
Intangibles arising on acquisition of Chagallu Distillery are written
off over a period of 10 years.
5. INVENTORIES:
a) Finished goods are valued at lower of cost or market value, product
wise.
b) Molasses, a by-product, is valued at the ruling market price.
c) Work-in-progress, Raw materials, Stores and Spares, Materials in
transit are valued at cost except where net realizable value of the
finished goods they are used in is less than the cost of finished goods
and in such an event, if the replacement cost of such materials etc.,
is less than book values, they are valued at replacement cost.
d) Scrap is valued at estimated realizable price.
e) Agricultural produce is valued at market price.
f) The Additional Cane Price payable for a season on the basis of "L"
factor will be accounted for in the year in which the "L" factor is
announced by the Central Government.
6. INVESTMENTS:
Investments unless otherwise stated are long term holdings and are
stated at cost. Income from dividend if any thereon is accounted for
accrual.
7. SALES :
a) Sales are inclusive of Excise Duty recovered and net of discounts
and rebates.
b) Sales tax collected from customers and remitted to the authorities
is not reflected in the Profit & Loss Account. On completion of the
sales tax assessments, the net liability, if any, payable by the
company, is charged to the Profit and Loss Account.
8. EMPLOYEE BENEFITS:
a) Company's contributions to Employee's Provident fund and Employee
State Insurance are made under a Defined Contribution Plan, and are
accounted for at actual cost in the year of accrual.
b) The company's liability to gratuity on retirement of its eligible
employees is funded with the Life Insurance Corporation of India
through an approved trust, under a Defined Benefit Plan. The
incremental expense thereon for each year is arrived at as per
actuarial valuation and is recognized and charged to the Profit and
Loss Accountant in the year in which the employee has rendered service.
c) Expense on account of unutilized unencashed leave is arrived at as
per actuarial valuation and is recognized and charged to the Profit and
Loss Account in the year in which employee has rendered services in
lieu of such leave.
d) Gains losses arrived at in the above actuarial valuations are
charged to the Profit and Loss account immediately in each year.
9. FOREIGN EXCHANGE TRANSACTIONS:
a) Transactions in foreign currency are initially accounted at the
exchange rate prevailing on the date of the transaction, and adjusted
appropriately to capital or revenue, with the difference in the rate of
exchange arising on actual receipt/payment during the year.
b) At each Balance Sheet date
- foreign currency monetary items are reported using the rate of
exchange on that date
- foreign currency non-monetary items are reported using the exchange
rate at which they were initially recognized
c) In respect of forward exchange contracts in the nature of hedges
- Premium or discount on the contract is amortized over the term of the
contract,
- Exchange differences on the contract are recognized as profit or loss
in the period in which they arise
10. IMPAIRMENT OF ASSETS
At the date of each Balance Sheet, the company evaluates internally,
indications of the impairment if any, to the carrying amount of its
fixed and other assets. If any indication does exist, the recoverable
amount is estimated at the higher of the realizable value and value in
use, as considered appropriate. If the estimated realizable value is
less than the carrying amount, an impairment loss is recognized.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation) had no impairment loss
been recognized for the asset in prior years.
11. CONTINGENT LIABILITIES
Contingent liabilities are not recognized in the accounts, but are
disclosed after a careful evaluation of the concerned facts and legal
issues involved.
12. TAXATION
Provision is made for income tax liability estimated to arise on the
results for the year at the current rate of tax in accordance with the
Income Tax Act, 1961.
Deferred tax resulting from timing differences between book and tax
profits is accounted for under the liability method, at the current
rate of tax.
Deferred tax assets arising on account of brought forward losses and
unabsorbed depreciation as per tax laws are recognized only when there
is virtual certainty supported by convincing evidence that such assets
will be realized. Deferred tax assets arising on other temporary timing
differences are recognized only if there is a reasonable certainty of
realization.
Mar 31, 2010
1. GENERAL:
Financial statements are prepared under the historicafcost convention
and in accordance with the generally accepted accounting practices.
2. FIXED ASSETS :
Fixed Assets are stated at cost less accumulated depreciation. Cost of
acquisition of fixed assets is inclusive of freight, duties, incidental
expenses relating to the cost of acquisition, and the cost of
installation/erection as applicable and interest on borrowings till
date of the commissioning of the Assets.
MODVAT availed, if any during the year on fixed assets is reduced from
the cost of such fixed assets capitalised during the year.
3. BORROWING COSTS :
Borrowing costs that are directly attributable to the acquisition,
construction or production of assets that necessarily take a
substantial period of time to get ready for their intended use or sale
are capitalized as part of cost of such assets. Other borrowing costs
are recognized as an expense in the period in which they are incurred.
4. DEPRECIATION :
Depreciation is written off in accordance with the provisions of
schedule XIV of the Companies Act, 1956, read with Circular No.1 of
1986 dated 21-5-1986 issued by the Company Law Board. Depreciation in
respect of Plant & Machinery at Cogeneration unit, WS Sugars, Chagallu
and Distillery Division at Chagallu is written off under straight-line
method and in respect of all other assets under written down value
method.
Intangibles arising on acquisition of Chagallu Distillery are written
off over a period of 10 years.
Intangible arising on amalgamation of Sri Rama Distilleries Limited is
written off over the period of 5 years.
5. INVENTORIES:
a) Finished goods are valued at lower of cost or market value, product
wise.
b) Molasses, a by-product, is valued at the ruling market price.
c) Work-in-progress, Raw materials, Stores and Spares, Materials in
transit are valued at cost except where net realizable value of the
finished goods they are used in is less than the cost of finished goods
and in such an event, if the replacement cost of such materials etc.,
is less than book values, they are valued at replacement cost.
d) Scrap is valued at estimated realizable price.
e) Agricultural produce is valued at market price.
f) The Additional Cane Price payable for a season on the basis of "L"
factor will be accounted for in the year in which the "L" factor is
announced by the Central Government.
6. INVESTMENTS:
Investments unless otherwise stated are long term holdings and are
stated at cost. Income from dividend if any thereon is accounted for
accrual.
7. SALES:
a) Sales are inclusive of Excise Duty recovered and net of discounts
and rebates.
b) Sales tax collected from customers and remitted to the authorities
is not reflected in the Profit & Loss Account. On completion of the
sales tax assessments, the net liability, if any, payable by the
company, is charged to the Profit & Loss Account.
8. EMPLOYEE BENEFITS:
a) Companys contributions to Employees Provident fund and Employee
State Insurance are made under a Defined Contribution Plan, and are
accounted for at actual cost in the year of accrual.
b) The companys liability to gratuity on retirement of its eligible
employees is funded with the Life Insurance Corporation of India
through an approved trust, under a Defined Benefit Plan. The
incremental expense thereon for each year is arrived at as per
actuarial valuation and is recognized and charged to the Profit and
Loss Account in the year in which the employee has rendered service.
c) Expense on account of unutilized unencashed leave is arrived at as
per actuarial valuation and is recognized and charged to the Profit and
Loss Account in the year in which employee has rendered services in
lieu of such leave.
d) Gains losses arrived at in the above actuarial valuations are
charged to the profit and loss account immediately in each year.
e) Expenses under Voluntary Retirement Scheme are amortised over a
period of five years (however before 31 * March, 2010).
f) Short term Employee Benefits like Salaries, Wages, Bonus etc are
accounted for at cost in the year in which the employee renders
service.
10. IMPAIRMENT OF ASSETS
At the date of each Balance Sheet, the company evaluates internally,
indications of the impairment if any, to the carrying amount of its
fixed and other assets. If any indication does exist, the recoverable
amount is estimated at the higher of the realizable value and value in
use, as considered appropriate. If the estimated realizable value is
less than the carrying amount, an impairment loss is recognized.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation) had no impairment loss
been recognized for the asset in prior years.
11. CONTINGENT LIABILITIES
Contingent liabilities are not recognized in the accounts, but are
disclosed after a careful evaluation of the concerned facts and legal
issues involved.
12. TAXATION
Provision is made for income tax liability estimated to arise on the
results for the year at the current rate of tax in accordance with the
Income Tax Act, 1961.
Deferred tax resulting from timing differences between book and tax
profits is accounted for under the liability method, at the current
rate of tax.
Deferred tax assets arising on account of brought forward losses and
unabsorbed depreciation as per tax laws are recognized only when there
is virtual certainty supported by convincing evidence that such assets
will be realized. Deferred tax assets arising on other temporary timing
differences are recognized only if there is a reasonable certainty of
realization.
Mar 31, 2000
1. GENERAL:
Financial statements are prepared under the historical cost convention
and in accordance with the generally accepted accounting practices.
2. FIXED ASSETS :
Fixed Assets are stated at cost less accumulated depreciation. Cost of
acquisition of fixed assets is inclusive of freight, duties, incidental
expenses relating to the cost of acquisition, and the cost of
installation/erection as applicable and interest on borrowings till
date of the commissioning of the Assets.
Part of the Companys lands at Rayagada units were revalued at their
market values as on 31.3.97 by an approved valuer and the said assets
are stated at the revalued amounts as on 31.3.1997.
3. MODVAT ON CAPITAL GOODS:
Modvat availed, if any during the year on fixed assets is reduced from
the cost of such fixed assets capitalised during the year.
4. DEPRECIATION :
Depreciation is written off in accordance with the provisions of
schedule XIV of the Companies Act, 1956, read with Circular No. 1 of
1986 dated 21.5.1986 issued by the Company Law Board. Depreciation in
respect of Plant & Machinery at Ramakrishna Maize Products and second
unit of VVS Sugars.Chagallu is written off under straight-line method
and in respect of all other assets under written down value method.
5. INVENTORIES:
a) Finished goods are valued at lower of cost or market value,
productwise.
b) Molasses, a by-product, is valued at estimated realisable rates.
c) Work-in-progress, Raw materials, Stores and Spares, Materials in
transit are valued at cost except where net realisable value of the
finished goods they are used in is less than the cost of finished goods
and in such an event, if the replacement cost of such materials etc.,
is less than book values, they are valued at replacement cost. Until
the immediate proceeding years these items of inventories were valued
at cost. See note no. 7 about the change in this policy, during the
year.
d) Scrap is valued at estimated realisable price.
e) Agricultural produce is valued at market price.
6. The Additional Cane Price payable for a season on the basis of "L"
factor will be accounted for in the year in which the "L" factor is
announced by the Central Government.
7. INVESTMENTS :
Investments unless otherwise stated are long term holdings and are
stated at cost. Income from dividend if any thereon is accounted for
accrual.
8. SALES:
a) Sales are inclusive of Excise duty recovered and net of discounts
and rebates.
b) Sales tax collected from customers and remitted to the authorities
is not reflected in the Profit & Loss account. On completion of the
sales tax assessments, the net liability, if any, payable by the
company, is charged to the Profit & Loss account.
9. RETIREMENT BENEFITS :
a) The periodical contributions made to concerned authorities towards
Provident Fund & ESI are charged to Revenue, on accrual.
b) Provision for Gratuity is made, based on actuarial valuation.
c) Provision is made in the accounts for the liability towards
unencashed leave wages on the basis as if all the eligible employees
retire on the date of the Balance Sheet.
10. PROPOSED DIVIDENDS :
Provision is made in the accounts for dividends as recommended by the
Board of Directors and tax on distributed profits, pending approval of
the shareholders at the Annual General Meeting.