Home  »  Company  »  Khoday India  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Khoday India Ltd. Company

Mar 31, 2017

(a) Accounting Convention:

The Financial Statements have been prepared under the Historical Cost Convention (except for certain assets which are revalued] in accordance with the Generally Accepted Accounting Practices in India.

(b) Basis of Preparation:

The financial statements have been prepared to comply with the mandatory accounting standards notified by Companies (Accounting Standard] Rules, 2006 and the relevant provisions of the Companies Act, 2013.

(c) Estimates and Assumptions:

Preparation of Financial Statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities as at the date of the Balance Sheet and the reported amounts of income and expenses during the reporting period. Examples include provision for doubtful debts, useful life of assets, etc. Actual results may differ from these estimates.

(d) Inventories:

Inventory of raw material, stores, spares, materials in transit, work in progress, finished goods - both manufactured and traded are valued at lower of cost and net realizable value.

The cost is calculated on First-in First-Out basis and comprises of expenditure incurred in the normal course of business in bringing such inventory to its present location, and includes the borrowing cost that are attributable to maturation stocks which has been considered for valuation of Work In Progress wherever applicable, and allocation of appropriate overheads based on normal level of activity.

Stock in Trade - Land is valued at the value on the date of conversion from capital asset to stock in Trade or the current market value, whichever is lower.

(e) Cash Flow Statements:

Cash Flow Statement has been prepared under "Indirect Method” as prescribed by Accounting Standard-3. Cash and cash equivalents comprise Cash in Hand, Cheques in Hand, Current and other accounts (Including Fixed Deposit] held with Banks.

(f) Events occurring after the Balance Sheet Date:

Assets and Liabilities are adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts related to conditions existing at the balance sheet date,

(g) Net Profit or Loss for the period, prior period Items and Changes in Accounting Policies:

- Net Profit for the period:

All the items of income and expenses in the period are included in the determination of net Profit / Loss for the period, unless specifically mentioned elsewhere in the financial statements or is required by an Accounting Standard.

- Prior Period item:

Income / Expenditure are disclosed in Prior Year Adjustments only when the value exceeds Rupees One Lakh in each case.

- Extra Ordinary items:

Extraordinary items, if any are disclosed separately in accordance with Accounting Standard - 5.

(h) Depreciation Accounting:

Depreciation has been provided on fixed assets based on the useful life prescribed under Schedule II to the Companies Act 2013, on written down value method except for Plant & Machinery and Building of Distillery Division acquired prior to 31st March 1999 and the assets of Paper Division where the depreciation has been provided on straight line basis. The useful life of Oakwood Barrels has been taken as 14 years, based on technical evaluation. Depreciation is provided on pro-rata basis on additions and deletions from the date the assets were put to use and up to the date of sale / transfer, respectively.

Certain Fixed Asset were been revalued during the year 1998-99. Consequent to provisions contained in Schedule II to the Companies Act, 2013 read with "Applicable Guide on the Provisions of Schedule II to the Companies Act, 2013” issued by the ICAI, the depreciation amount attributable to the revalued portion of Fixed Assets have been charged to the Statement of Profit & Loss Account and not drawn from the Revaluation Reserve.

(i) Revenue Recognition:

- Sales are recognized when the significant risks and rewards of ownership of the goods have passed to the buyer which coincides with the dispatch of goods to the customers. Sales are net of returns; sales tax collected and tax collected at source are not included in sales. Sales include excise duty and additional excise duty.

- Dividend on Investments is accounted in the year in which the right to receive is established.

* Incomes from services or contracts are recognized in accordance with the terms of the contract.

(j) Accounting for Tangible Fixed Assets:

Fixed assets are stated at cost of acquisition inclusive of inward freight, duties (net off CENVAT Credit] and taxes and incidental expenses related to acquisition. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalized. Expenses capitalized also include applicable borrowing costs till the date of commencement of production.

Assets acquired under hire purchase are capitalized to the extent of the principal value.

In case of revaluation of Tangible Assets, the difference between the written up value of the Asset revalued and the carrying amount in the books are transferred to Revaluation Reserve.

(k) Accounting for Effect in Foreign Exchange Rates:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities on the balance sheet date are translated at year end exchange rates. Exchange difference arising either on settlement of foreign exchange transactions or translation of monetary items is recognized as income or expense in the year in which they arise.

(1) Accounting for Investments:

- Non Current investments are valued at cost. Provision is made to recognize a diminution other than temporary, in the value of each long-term investment.

- Current Investments are stated at lower of cost and quoted/fair value.

(m) Accounting for Employee benefits:

- Short term benefits

Short term employee benefits expected to be paid in exchange for the services rendered by the employees is recognized during the period when the employee renders the services.

- Provident Fund

Provident fund is a defined contribution scheme as the Company pays fixed contribution at predetermined rates. The obligation of the Company is limited to such fixed contribution. The contributions are charged to Profit & Loss Account.

- Gratuity

The company provides for gratuity, a defined benefit retirement plan covering eligible employees. Liabilities with regard to the Gratuity are determined by actuarial valuation as at the balance sheet date.

- Leave Encashment

The company provides for Leave Encashment, a defined benefit retirement plan covering all the employees. Liabilities with regard to the Leave Encashment are determined by actuarial valuation as at the balance sheet date.

(n) Borrowing Cost:

Borrowing costs attributable to acquisition and construction of assets are capitalized as part of the cost of such asset up to the date when such asset is ready for its intended use. Borrowing costs attributable to ''Maturation stocks'' has been considered for valuation of Work In Progress, as these stocks require a substantial period of time to bring them to saleable condition. Other Borrowing Costs are treated as revenue expenditure.

(o) Segment Reporting:

The company has considered business segment as reporting segment and accordingly identified Liquor, Glass, Contract, Systems and Realty as reporting business segments. Secondary segmental reporting is performed on the basis of the geographical location of the customers and accordingly segmental revenue is reported as revenue from India and from outside India.

The related party transactions have been classified under the heads Subsidiary, Key Management Personnel, relatives of Key Management Personnel and Entities over which Key Management Personnel and / or their relatives are able to exercise significant influence.

(q) Lease:

- Finance Lease Payments are apportioned between Finance Charges and reduction of lease liability as per the relevant agreements.

- Operating Lease payments are recognized in the Statement of Profit and Loss over the lease term.

(r) Earnings per Share:

- Basic earnings per share has been computed with reference to Weighted Average number of Shares outstanding at monthly rests.

- Diluted Earnings per share has been computed based on the basic earnings adjusted for all dilutive potential equity shares.

(s) Accounting for Taxes on Income:

Tax expense comprises of current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred income-tax reflects the impact of timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the Tax Laws and rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized on brought forward unabsorbed depreciation and brought forward losses only if there is a virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits. Deferred tax asset of earlier years is reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which, such deferred tax assets can be realized.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax asset and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and deferred tax liabilities relate to taxes on income levied by same governing taxation laws.

Minimum Alternate Tax (MAT) Credit recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each balance sheet date and the carrying amount of MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the company will pay normal income tax during the specified period.

(t) Impairment of Asset:

At each balance sheet date, the management reviews the carrying amounts of its assets to determine whether there is any indication that those assets were impaired. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which the asset is identified as impaired, unless the asset is carried at revalued amount, in which case any impairment loss of a revalued asset is treated as a decrease in Revaluation Reserve. The impairment Loss recognized in prior accounting periods is reversed if there has been an increase in the estimate of recoverable value.

(u) Provision, Contingent Liabilities and Contingent Assets:

- A present obligation, as a result of past events which could be reliably estimated, is provided in the accounts, if it is probable that there will be an outflow of resources.

- Contingent liabilities are not recognized, but are disclosed at their estimated value by way of notes in the Financial Statements.

- Contingent Assets are neither recognized nor disclosed in the financial statements.

(v) Trade Receivables and Loans & Advances:

Trade receivables and Loans and Advances are stated after making adequate provision for those doubtful of recovery.

(w)Expenditure:

Expenses are accounted on accrual basis and provision is made for all known losses and liabilities.

(x) Excise Duty:

Excise duty recovered is included in the sale of products. Excise duty paid on dispatches and in respect of finished goods lying at factory premises are shown separately as an item of excise duty in the Profit and Loss account and included in the valuation of Finished Goods.


Mar 31, 2016

(a) Accounting Convention:

The Financial Statements have been prepared under the Historical Cost Convention (except for certain assets which are revalued) in accordance with the Generally Accepted Accounting Practices in India.

(b) Basis of Preparation:

The financial statements have been prepared to comply with the mandatory accounting standards notified by Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 2013.

(c) Estimates and Assumptions:

Preparation of Financial Statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities as at the date of the Balance Sheet and the reported amounts of income and expenses during the reporting period. Examples include provision for doubtful debts, useful life of assets, etc. Actual results may differ from these estimates.

(d) Inventories:

Inventory of raw material, stores, spares, materials in transit, work in progress, finished goods - both manufactured and traded are valued at lower of cost and net realizable value.

The cost is calculated on First-in First-Out basis and comprises of expenditure incurred in the normal course of business in bringing such inventory to its present location, and includes the borrowing cost that are attributable to maturation stocks which has been considered for valuation of Work In Progress wherever applicable, and allocation of appropriate overheads based on normal level of activity.

Stock in Trade - Land is valued at the value on the date of conversion from capital asset to stock in Trade or the current market value, whichever is lower.

(e) Cash Flow Statements:

Cash Flow Statement has been prepared under "Indirect Method" as prescribed by Accounting Standard-3. Cash and cash equivalents comprise Cash in Hand, Cheques in Hand, Current and other accounts (Including Fixed Deposit) held with Banks.

(f) Events occurring after the Balance Sheet Date:

Assets and Liabilities are adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts related to conditions existing at the balance sheet date.

(g) Net Profit or Loss for the period, prior period Items and Changes in Accounting Policies:

- Net Profit for the period:

All the items of income and expenses in the period are included in the determination of net Profit / Loss for the period, unless specifically mentioned elsewhere in the financial statements or is required by an Accounting Standard.

- Prior Period item:

Income / Expenditure are disclosed in Prior Year Adjustments only when the value exceeds Rupees One Lakh in each case.

- Extra Ordinary items:

Extraordinary items, if any are disclosed separately in accordance with Accounting Standard - 5.

(h) Depreciation Accounting:

Depreciation has been provided on fixed assets based on the useful life prescribed under Schedule II to the Companies Act 2013, on written down value method except for Plant & Machinery and Building of Distillery Division acquired prior to 31st March 1999 and the assets of Paper Division where the depreciation has been provided on straight line basis. The useful life of Oakwood Barrels has been taken as 14 years, based on technical evaluation. Depreciation is provided on pro-rata basis on additions and deletions from the date the assets were put to use and up to the date of sale / transfer, respectively.

Certain Fixed Asset were been revalued during the year 1998-99. Consequent to provisions contained in Schedule II to the Companies Act, 2013 read with "Applicable Guide on the Provisions of Schedule II to the Companies Act, 2013" issued by the ICAI, the depreciation amount attributable to the revalued portion of Fixed Assets have been charged to the Statement of Profit & Loss Account and not drawn from the Revaluation Reserve.

(i) Revenue Recognition:

- Sales are recognized when the significant risks and rewards of ownership of the goods have passed to the buyer which coincides with the dispatch of goods to the customers. Sales are net of returns; sales tax collected and tax collected at source are not included in sales. Sales include excise duty and additional excise duty.

- Dividend on Investments is accounted in the year in which the right to receive is established.

* Incomes from services or contracts are recognized in accordance with the terms of the contract.

(j) Accounting for Tangible Fixed Assets:

Fixed assets are stated at cost of acquisition inclusive of inward freight, duties (net off CENVAT Credit) and taxes and incidental expenses related to acquisition. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalized. Expenses capitalized also include applicable borrowing costs till the date of commencement of production.

Assets acquired under hire purchase are capitalized to the extent of the principal value.

In case of revaluation of Tangible Assets, the difference between the written up value of the Asset revalued and the carrying amount in the books are transferred to Revaluation Reserve.

(k) Accounting for Effect in Foreign Exchange Rates:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction.

Foreign currency monetary assets and liabilities on the balance sheet date are translated at year end exchange rates. Exchange difference arising either on settlement of foreign exchange transactions or translation of monetary items is recognized as income or expense in the year in which they arise.

(l) Accounting for Investments:

* Non Current investments are valued at cost. Provision is made to recognize a diminution other than temporary, in the value of each long-term investment.

- Current Investments are stated at lower of cost and quoted/fair value.

(m) Accounting for Employee benefits: - Short term benefits

Short term employee benefits expected to be paid in exchange for the services rendered by the employees is recognized during the period when the employee renders the services.

- Provident Fund

Provident fund is a defined contribution scheme as the Company pays fixed contribution at predetermined rates. The obligation of the Company is limited to such fixed contribution. The contributions are charged to Profit & Loss Account.

- Gratuity

The company provides for gratuity, a defined benefit retirement plan covering eligible employees. Liabilities with regard to the Gratuity are determined by actuarial valuation as at the balance sheet date.

- Leave Encashment

The company provides for Leave Encashment, a defined benefit retirement plan covering all the employees. Liabilities with regard to the Leave Encashment are determined by actuarial valuation as at the balance sheet date.

(n) Borrowing Cost:

Borrowing costs attributable to acquisition and construction of assets are capitalized as part of the cost of such asset up to the date when such asset is ready for its intended use. Borrowing costs attributable to ''Maturation stocks'' has been considered for valuation of Work In Progress, as these stocks require a substantial period of time to bring them to saleable condition. Other Borrowing Costs are treated as revenue expenditure.

(o) Segment Reporting:

The company has considered business segment as reporting segment and accordingly identified Liquor, Glass, Contract, Systems and Realty as reporting business segments. Secondary segmental reporting is performed on the basis of the geographical location of the customers and accordingly segmental revenue is reported as revenue from India and from outside India.

(p) Related Party Transactions:

The related party transactions have been classified under the heads Subsidiary, Key Management Personnel, relatives of Key Management Personnel and Entities over which Key Management Personnel and / or their relatives are able to exercise significant influence.

(q) Lease:

- Finance Lease Payments are apportioned between Finance Charges and reduction of lease liability as per the relevant agreements.

- Operating Lease payments are recognized in the Statement of Profit and Loss over the lease term.

(r) Earning per Share:

- Basic earnings per share has been computed with reference to Weighted Average number of Shares outstanding at monthly rests.

- Diluted Earnings per share has been computed based on the basic earnings adjusted for all dilutive potential equity shares.

(s) Accounting for Taxes on Income:

Tax expense comprises of current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred income-tax reflects the impact of timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the Tax Laws and rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized on brought forward unabsorbed depreciation and brought forward losses only if there is a virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits. Deferred tax asset of earlier years is reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which, such deferred tax assets can be realized.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax asset and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and deferred tax liabilities relate to taxes on income levied by same governing taxation laws.

Minimum Alternate Tax (MAT) Credit recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each balance sheet date and the carrying amount of MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the company will pay normal income tax during the specified period.

(t) Impairment of Asset:

At each balance sheet date, the management reviews the carrying amounts of its assets to determine whether there is any indication that those assets were impaired. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which the asset is identified as impaired, unless the asset is carried at revalued amount, in which case any impairment loss of a revalued asset is treated as a decrease in Revaluation " Reserve. The impairment Loss recognized in prior accounting periods is reversed if there has been an increase in the estimate of recoverable value.

(u) Provision, Contingent Liabilities and Contingent Assets:

- A present obligation, as a result of past events which could be reliably estimated, is provided in the accounts, if it is probable that there will be an outflow of resources.

- Contingent liabilities are not recognized, but are disclosed at their estimated value by way of notes in the Financial Statements.

- Contingent Assets are neither recognized nor disclosed in the financial statements.

(v) Trade Receivables and Loans & Advances:

Trade receivables and Loans and Advances are stated after making adequate provision for those doubtful of recovery.

(w) Expenditure:

Expenses are accounted on accrual basis and provision is made for all known losses and liabilities.

(x) Excise Duty:

Excise duty recovered is included in the sale of products. Excise duty paid on dispatches and in respect of finished goods lying at factory premises are shown separately as an item of excise duty in the Profit and Loss account and included in the valuation of Finished Goods.


Mar 31, 2015

The financial statement have been prepated under the cost comnention (except for certain assets which are revalued ) in accountince with generally accretion proctives in Indin

b) Basls of preparation

the financial statement have been proparad to company with the mandatory accounting statement notified by companies accounting statement rules 2006 and the relevant provisions of the companies ACT,2016

C) Extimates and assumptions

Preparation of financial statement reoule management to make and assumptions that affect the reported amount of assets and liabilltles and disciosurve of contingent liabilltles as at the date of the balance sheet and the reported amount of income and expence during the reporting period examples include provistion for clouseful cletits useful of assets Act anncal resuits may differ form these ettimates.

d)Inventones:

inventones of raw material stores spares in transit work in progress finished goods both manasufactureed and allocation stock are volude overhard hased at lower of cast relizabie vatue

the cost is calculated on first in first dut bussis and of expent the incurred in the normal course of business in brining such inventory to itspresent location and includes the borrowing cost that are attributable to maturation of appropriate overbesds based on of activity

stock in trade-land be valued at the value on the date of coniversion from capltal asset to stock in trade or the cuttrent market value withcher is lower

e) Cash flow statement

cash fiow statemwnt has been prepared under “Indirect Method” as prescttied by accounting standard -3 cash and cash equivaients comprese cash in hard cheques in hand current and other account (including fixed deposis) held with banks

f) Events accurring after the balance sheet date :-

Asset and liabillses are adjusted for events accurring afters the batance sheet date that provide additional evldence the estimantion of amounts to conditions exising at the balance sheet date.

g)Net profit on loss for the pered , prior period iterms and changes in accounting policies

All the items of income and in the period are the included in the date/mination of net profit /coss for the period unless specically mentioned rivew where in the financial statement or is required by an accounting statement.

- Prior period item :

Income /expenditure are disclosed in prior year adjustments only when the value exceed one lackh in each case.

Extra ordinary items:

Extraordinary items it any are disclosed separately in accordance with accounting standard-s

h)Depreciation Accounting

depreciation has been provided on fixed bassed on the useful life prescribed under schedule it to the receive is establisbed.

Income formservies of contracts in accriance with the terms the contract

ii) Accounting for tangible fixed assets

fixed assets are staterad as cost of acquisition including of lovward fright duties (net off ceivat credit)and taxeis and incidernet as experses radiated to acqinisition in respect of major grojscts involving constriuction related pre-operational experneses from part of the valu of assets capitaflied also include applicable costs till the date of commencement of production

assets acquired under there purchase are capitatiend to the extent of the financial there.

k) Accounting for effect in foreign exchange rates

Transation in foreing curtencies are recontided at the exchange rates prevailing on the date of transaction foreign currence monetely assets and habilites on the balance sheet date are iranstated at year end exchange rates exchance difference atiting essther on statement of foreing exchange transations of transltions of monetary is recogniczed as income in the year in which they arise.

ACCOUNTING FOR INVESTMENTS

Non current invelment are valued at cost provieion is made to recognition other than terporary in the value of each term investment

Current investment are stated at lower of cost and quoted fair value

Accounting for Emploves benefitst

Short term benefits

Short term employes benefits contritertion scheme as the company as the pays fixed contribution at pre determined are chaged to profit &account

Provident fund

Provident fund is a defined contritastion scheme as the company pasy fixed contribution the contrioution are chage to profit &loss account

Gratuity

The company provident for gratuity a defiend benfit cetirement plan covering eligble employees

Segment reporting

The company has consided business segmeet as reporting seglient and acconifingle identified liquor class contract and systems as reporting business senginment secondary sementirl reporting is performined on the basis of the geograshice locatken of the customens and accordifing stgnement revenue is reported as revenue India and from outside India.

Relatod party transasctions:

The related party truncations have been ciassified under heads subsidiary key managsment and/ or their relatives are ale to exercise significant infiunce.

Lease

Financial lease payinments are apportionsted between financial charges reduction of lease as per the relevant agreements

Operation lease payments shere recognized in the statement of the and loss over the leaise term

Earning per shere

Basic earning per shere has been compated based on the earnigs number of shere outstanding at reses.

Outed earning per shere has een companted bassed to referencefor all ative potential equity sheres

Accounting for taxes on income

Tax expence compriesof current and defersted income tax is enacted at the amount expected to be the tax in accoundance between with the income taxAct 1961 income tax refites the of timing difference between taxble income and accounting for the year and reversal of timing offference of the earlies years.

Impairment of asset

At each balance sheet date the menegement revies the carring amount of the assets to the detamines wherenes there is any income that those assets income an assat treated as impaired when the carring cost of the lissent excence its recovermant value. An imparirment loss is charged to the provit when the loss account in the year in which the asset in identified as uniess the asset revlued it there has been an increase in the estimate of recoverable value

Provision contingent liabilities and contingent assets

A presentobligation are not recognited which could be refirady estriuation is provide in the account is probable that there will be an resaces

Contingent lilablities are not recognited but are disciosed at their extimated value by way of notes the financial statement

Contingent assets are recognized for disciosed financial statement

Trade receivables and loans & andvance

Trade are recelvable and advanice are stated after making adequrst provision for those doubtfulor recovery

Expenditure

Experse are accounted on accrual basis and provision is for all know losses and libllities

Excise duty

Excise duty recovered is included in the sale of protucts excise duty pain on dispartclice and in respect of financial goods tting at factory preiness are shown reparately as an item of exsice dute in the profit and loss accont and inchard iin the valuastion financial goods

Provies year figutes have been re-grouped /te-arranged whecevent recessry in conform to the currtent year’s presentation.


Mar 31, 2014

Significant accounting policies and notes on financial statement

A..Significant Accounting policies

The financial statement have been prepared under the cost contention (except for certain assets which are revalued ) in accountancy with generally accretion proactive in Indian

b) Basis of preparation

the financial statement have been prepared to company with the mandatory accounting statement notified by companies accounting statement rules 2006 and the relevant provisions of the companies ACT,1956

C) Estimates and assumptions

Preparation of financial statement refuel management to make and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as at the date of the balance sheet and the reported amount of income and expense during the reporting period examples include provision for closetfuls credits useful of assets Act annual results may differ from these estimates.

d)Invent ones:

invent ones of raw material stores spares in transit work in progress finished goods both manufactured and allocation stock are volute overheard based at lower of cast realizable value the cost is calculated on first in first duty basis and of expend the incurred in the normal course of business in brining such inventory to its present location and includes the borrowing cost that are attributable to maturation of appropriate overbids based on of activity stock in trade-land be valued at the value on the date of conversion from capital asset to stock in trade or the cut rent market value with her is lower

e) Cash flow statement

cash flow statement has been prepared under “Indirect Method” as persecuted by accounting standard -3 cash and cash equivalents comprise cash in hard cheques in hand current and other account (including fixed deposit) held with banks

f) Events occurring after the balance sheet date :-

Asset and liabilities are adjusted for events occurring after the balance sheet date that provide additional evidence the estimation of amounts to conditions excising at the balance sheet date.

g)Net profit on loss for the peered , prior period items and changes in accounting policies

All the items of income and in the period are the included in the date/monition of net profit /coss for the period unless specially mentioned rives where in the financial statement or is required by an accounting statement.

- Prior period item :

Income /expenditure are disclosed in prior year adjustments only when the value exceed one lackh in each case.

- Extra ordinary items:

Extraordinary items it any are disclosed separately in accordance with accounting standard-s

h)Depreciation Accounting

depreciation has been provided on fixed bussed on the useful life prescribed under schedule it to the receive is established.

Income form services of contracts in accordance with the terms the contract

ii) Accounting for tangible fixed assets

fixed assets are statured as cost of acquisition including of toward fright duties (net off civet credit)and taxies and incident as expresses radiated to acquisition in respect of major projects involving constriction related pre-operational expertness from part of the value of assets capitalized also include applicable costs till the date of commencement of production assets acquired under their purchase are capitation to the extent of the financial there.

k) Accounting for effect in foreign exchange rates

Transition in foreign currencies are recon tided at the exchange rates prevailing on the date of transaction foreign currency minutely assets and abilities on the balance sheet date are reinstated at year end exchange rates exchange difference attiring Esther on statement of foreign exchange transitions of translations of monetary is recognized as income in the year in which they arise.

ACCOUNTING FOR INVESTMENTS

- Long Term interment are valued at cost provision is made to recognition other than temporary in the value of each term investment

Current investment are stated at lower of cost and quoted fair value

(m) Accounting for Employees benefits

Short term benefits

Short term employees benefits contortion scheme as the company as the pays fixed contribution at pre determined are charged to profit &account

Provident fund

Provident fund is a defined contrition scheme as the company pass fixed contribution the contribution are charge to profit &loss account

Gratuity

The company provident for gratuity a defined benefit retirement plan covering eligible employees liabilities with regard to the greatly are determined by actuaries valuation as at the balance sheet. Date.

(n) Borrowing cost

Borrowing cost attributable to acquisition and construction of assets are captivated as part of the coast of such assets up to the date when such assets in ready for its intended use. Borrowing costs attributable to maturation stocks has been considered for valuation of work in program as these stocks require a substantial period of time to bring to safe able condition other borrowing costs are treated as revenue expenditure.

(o)Segment reporting

The company has consider business segment as reporting salient and acceding identified liquor class contract and systems as reporting business sentiment secondary segmental reporting is performance on the basis of the geographic locate of the customers and according tenement revenue is reported as revenue India and from outside India.

Related party transactions:

The related party truncations have been classified under heads subsidiary key management and/ or their relatives are able to exercise significant influence.

(q) Lease

- Financial lease payments are apportioned between financial charges reduction of lease as per the relevant agreements

- Operation lease payments share recognized in the statement of the and loss over the liaise term


®Earning per share

- Basic earnings per share has been competed based on the earnings number of share outstanding at rises.

- Ousted earning per share has been compacted bussed to reference for all active potential equity shares

(s) Accounting for taxes on income

Tax expense comprise current and deforested income tax is enacted at the amount expected to be the tax in accountancy between with the income tax Act 1961 income tax refits the of timing difference between taxable income and accounting for the year and reversal of timing conference of the earliest years.

(t) Impairment of asset

At each balance sheet date the management revise the carrying amount of the assets to the determines whiteness there is any income that those assets income an asset treated as impaired when the carrying cost of the listen expense its recover ant value. An impairment loss is charged to the provide when the loss account in the year in which the asset in identified as unless the asset revalued it there has been an increase in the estimate of recoverable value

(u) Provision contingent liabilities and contingent assets

- A present obligation are not recognized which could be refried striation is provide in the account is probable that there will be an resaves

- Contingent liabilities are not recognized but are disclosed at their estimated value by way of notes the financial statement

- Contingent assets are recognized for disclosed financial statement

(v) Trade receivables and loans & advance

Trade are receivable and advance are stated after making request provision for those doubtful or recovery

(w) Expenditure

Expires are accounted on accrual basis and provision is for all know losses and liabilities

Excise duty

Excise duty recovered is included in the sale of protects excise duty pain on disport and in respect of financial goods setting at factory preens are shown separately as an item of excise date in the profit and loss account and in chard in the valuation financial goods


Mar 31, 2013

(a) Accounting Convention:

The Financial Statements have been prepared under the Historical Cost Convention except for certain assets which are revalued in accordance with the Generally Accepted Accounting Practices in India.

(b) Basis of Preparation:

The financial statements have been prepared to comply with the mandatory accounting standards notified by Companies (Accounting Standard) rules, 2006 and the relevant provisions of the Companies Act, 1956.

(c) Estimates and Assumptions:

Preparation of Financial Statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the Balance Sheet and the reported amounts of income and expenses during the reporting period. Examples include provision for doubtful debts, useful life of assets, etc. Actual results may differ from these estimates.

(d) Inventories:

Inventory of raw material, stores, spares, materials in transit, work in progress, finished goods -both manufactured and traded are valued at lower of cost and net realizable value.

The cost is calculated on First-in First-Out basis and comprises of expenditure incurred in the normal course of business in bringing such inventory to its present location, and includes the borrowing cost that are attributable to maturation stocks which has been considered for valuation of semi- finished goods wherever applicable, and allocation of appropriate overheads based on normal level of activity.

Stock in Trade - Land is valued at the value on the date of conversion from capital asset to stock in Trade or the current market value, whichever is lower.

(e) Cash Flow Statements:

Cash Flow Statement has been prepared under "Indirect Method" as prescribed by Accounting Standard-3. Cash and cash equivalents comprise Cash in Hand, Current and other accounts (Including Fixed Deposit) held with Banks.

(f) Events occurring after the Balance Sheet Date:

Assets and Liabilities are adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts related to conditions existing at the balance sheet date.

(g) Net Profit or Loss for the period, prior period Items and Changes in Accounting Policies: - Net Profit for the period:

All the items of income and expenses in the period are included in the determination of net

Profit / Loss for the period, unless specifically mentioned elsewhere in the financial statements or is required by an Accounting Standard.

- Prior Period item:

Income / Expenditure are disclosed in Prior Year Adjustments only when the value exceeds Rupees One Lakh in each case.

- Extra Ordinary items:

Extraordinary items, if any are disclosed separately in accordance with Accounting Standard - 5.

(h) Depreciation Accounting:

Depreciation has been provided on fixed assets at the rates prescribed in Schedule XIV to the Companies Act 1956, on written down value method except for Plant & Machinery and Building of Distillery Division acquired prior to 31st March 1999 and the assets of Paper Division where the depreciation has been provided on straight line basis. Depreciation on Oakwood barrels has been provided on written down value method @ 20%, based on technical evaluation. Depreciation is provided on pro-rata basis on additions and deletions from the date the assets were put to use and up to the date of sale / transfer, respectively. Plant & Machinery costing Rs.5,000/- and less is depreciated in full.

Certain Fixed Assets has been revalued during the year 1998-99. The depreciation charged on such Revalued assets is transferred from Revaluation reserve to the Profit & Loss Account.

(i) Revenue Recognition:

» Sales are recognized when the significant risks and rewards of ownership of the goods have passed to the buyer which coincides with the dispatch of goods to the customers. Sales are net of returns; sales tax collected and tax collected at source are not included in sales. Sales include excise duty and additional excise duty.

- Dividend on Investments is accounted in the year in which the right to receive is established.

- Income from services is recognized in accordance with the terms of the contract.

(j) Accounting for Tangible Fixed Assets:

Fixed assets are stated at cost of acquisition inclusive of inward freight, duties (net off CENVAT Credit) and taxes and incidental expenses related to acquisition. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalized. Expenses capitalized also include applicable borrowing costs till the date of commencement of production.

Assets acquired under hire purchase are capitalized to the extent of the principal value.

(k) Accounting for Effect in Foreign Exchange Rates:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities on the balance sheet date are translated at year end exchange rates. Exchange difference arising either on settlement of foreign exchange transactions or translation of monetary items is recognized as income or expense in the year in which they arise.

(I) Accounting for Investments:

- Long term investments are valued at cost. Provision is made to recognize a diminution other than temporary, in the value of each long-term investment.

- Current Investments are stated at lower of cost and quoted/fair value. (m) Accounting for Employee benefits:

- Short term benefits

Short term employee benefits expected to be paid in exchange for the services rendered by the employees is recognized during the period when the employee renders the services.

- Provident Fund

Provident fund is a defined contribution scheme as the Company pays fixed contribution at pre-determined rates. The obligation of the Company is limited to such fixed contribution. The contributions are charged to Profit & Loss Account.

Gratuity

The company provides for gratuity, a defined benefit retirement plan covering eligible employees. Liabilities with regard to the Gratuity are determined by actuarial valuation as at the balance sheet date.

- Leave Encashment

The company provides for Leave Encashment, a defined benefit retirement plan covering all the employees. Liabilities with regard to the Leave Encashment are determined by actuarial valuation as at the balance sheet date.

(n) Borrowing Cost:

Borrowing costs attributable to acquisition and construction of assets are capitalized as part of the cost of such asset up to the date when such asset is ready for its intended use. Borrowing costs attributable to ''Maturation stocks'' has been considered for valuation of semi-finished, as these stocks require a substantial period of time to bring them to saleable condition. Other Borrowing Costs are treated as revenue expenditure.

(o) Segment Reporting:

The company has considered business segment as reporting segment and accordingly identified Liquor, Glass, Contract and Systems as reporting business segments. Secondary segmental reporting is performed on the basis of the geographical location of the customers and accordingly segmental revenue is reported as revenue from India and from outside India.

(p) Related Party Transactions:

The related party relationships have been classified under the heads Subsidiary, Key Management Personnel, relatives of Key Management Personnel and Entities over which Key Management Personnel and / or their relatives are able to exercise significant influence.

(q) Lease:

Finance Lease Payments are apportioned between Finance Charges and reduction of lease liability as per the relevant agreements.

Operating Lease payments are recognized in the Statement of Profit and Loss over the lease term.

(r) Earning per Share:

- Basic earning per share has been computed with reference to Weighted Average number of Shares outstanding at monthly rests.

- Diluted Earnings per share has been computed based on the basic earnings adjusted for all dilutive potential equity shares.

(s) Accounting for Taxes on Income:

Tax expense comprises of current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred income-tax reflects the impact of timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the Tax Laws and rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized on brought forward unabsorbed depreciation and brought forward losses only if there is a virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits. Deferred tax asset of earlier years is reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which, such deferred tax assets can be realized.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax asset and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and deferred tax liabilities relate to taxes on income levied by same governing taxation laws.

Minimum Alternate Tax (MAT) Credit recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each balance sheet date and the carrying amount of MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the company will pay normal income tax during the specified period.

(t) Impairment of Asset:

An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which the asset is identified as impaired, unless the asset is carried at revalued amount, in which case any impairment loss of a revalued asset is treated as a decrease in Revaluation Reserve. The impairment Loss recognized in prior accounting periods is reversed if there has been an increase in the estimate of recoverable value.

(u) Provision, Contingent Liabilities and Contingent Assets:

- A present obligation, as a result of past events which could be reliably estimated, is i* provided in the accounts, if it is probable that there will be an outflow of resources. .

- Contingent liabilities are not recognized, but are disclosed at their estimate value by way of notes in the Financial Statements.

- Contingent Assets are neither recognized nor disclosed in the financial statements.

(v) Trade Receivables and Loans & Advances:

Trade receivables and Loans and Advances are stated after making adequate provision for those doubtful of recovery.

(w) Expenditure:

Expenses are accounted on accrual basis and provision is made for all known losses and liabilities.

(x) Excise Duty:

Excise duty recovered is included in the sale of products. Excise duty paid on dispatches and in respect of finished goods lying at factory premises are shown separately as an item of excise duty in the Profit and Loss account and included in the valuation of Finished Goods.


Mar 31, 2012

(a) Accounting Convention:

The Financial Statements have been prepared under the Historical Cost Convention except for certain assets which are revalued in accordance with the Generally Accepted Accounting Practices in India.

(b) Basis of Preparation:

The financial statements have been prepared to comply with material aspects regarding all accounting standards notified by Companies (Accounting Standard) rules, 2006 and the relevant provisions of the Companies Act, 1956.

(c) Estimates and Assumptions:

Preparation of Financial Statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the Balance Sheet and the reported amounts of income and expenses during the reporting period. Examples include provision for doubtful debts, useful life of assets, etc. Actual results may differ from these estimates.

(d) Inventories:

Inventory of raw material, stores, spares, materials in transit, work in progress, finished goods - both manufactured and traded are valued at lower of cost and net realizable value.

The cost is calculated on First-in First-Out basis and comprises of expenditure incurred in the normal course of business in bringing such inventory to its present location, and includes the borrowing cost that are attributable to maturation stocks which has been considered for valuation of semi- finished goods wherever applicable, and allocation of appropriate overheads based on normal level of activity.

Stock in Trade - Land is valued at the value on the date of conversion from capital asset to stock in Trade or the current market value, whichever is lower.

(e) Cash Flow Statements:

Cash Flow Statement has been prepared under "Indirect Method" as prescribed by Accounting Standard-3. Cash and cash equivalents comprise Cash in Hand, Current and other accounts (Including Fixed Deposit) held with Banks.

(f) Events occurring after the Balance Sheet Date:

Assets and Liabilities are adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts related to conditions existing at the balance sheet date.

(g) Net Profit or Loss for the period, prior period Items and Changes in Accounting Policies:

- Net Profit for the period:

All the items of income and expenses in the period are included in the determination of net

Profit / Loss for the period, unless specifically mentioned elsewhere in the financial statements or is required by an Accounting Standard.

- Prior Period item:

Income / Expenditure are disclosed in Prior Year Adjustments only when the value exceeds Rupees One Lakh in each case.

- Extra Ordinary items:

Extraordinary items, if any are disclosed separately in accordance with Accounting Standard - 5.

(h) Depreciation Accounting:

Depreciation has been provided on fixed assets at the rates prescribed in Schedule XIV to the Companies Act 1956, on written down value method except for Plant & Machinery and Building of Distillery Division acquired prior to 31st March 1999 and the assets of Paper Division where the depreciation has been provided on straight line basis. Depreciation on Oakwood barrels has been provided on written down value method @ 20%, based on technical evaluation. Depreciation is provided on pro-rata basis on additions and deletions from the date the assets were put to use and up to the date of sale / transfer, respectively. Plant & Machinery costing Rs.5,000/- and less is depreciated in full.

Certain Fixed Assets has been revalued during the year 1998-99. The depreciation charged on such Revalued assets is transferred from Revaluation reserve to the Profit & Loss Account.

(i) Revenue Recognition:

- Sales are recognized when the significant risks and rewards of ownership of the goods have passed to the buyer which coincides with the dispatch of goods to the customers. Sales are net of returns; sales tax collected and tax collected at source are not included in sales. Sales include excise duty and additional excise duty.

- Dividend on Investments is accounted in the year in which the right to receive is established.

- Income from services is recognized in accordance with the terms of the contract.

(j) Accounting for Tangible Fixed Assets:

Tangible Fixed Assets are stated at cost of acquisition and subsequent improvements thereto, and includes inward freight, duties and taxes and incidental expenses related to acquisition and improvements. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalized. Expenses capitalized also include applicable borrowing costs till the date of commencement of production.

Assets acquired under hire purchase are capitalized to the extent of the principal value.

In case of Revaluation of Tangible Assets, the difference between the written up value of the Asset revalued and the carrying amount in books are transferred to Revaluation reserve.

(k) Accounting for Effect in Foreign Exchange Rates:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities on the balance sheet date are translated at year end exchange rates. Exchange difference arising on settlement of foreign exchange transactions and translation of monetary items is recognized as income or expense in the year in which they arise.

(l) Accounting for Investments:

- Long term investments are valued at cost. Provision is made to recognize a diminution other than temporary, in the value of each long-term investment.

- Current Investments are stated at lower of cost and quoted/fair value.

(m) Accounting for Employee benefits:

- Short term benefits

Short term employee benefits expected to be paid in exchange for the services rendered by the employees is recognized during the period when the employee renders the services.

- Provident Fund

Provident fund is a defined contribution scheme as the Company pays fixed contribution at pre-determined rates. The obligation of the Company is limited to such fixed contribution. The contributions are charged to Profit & Loss Statement.

- Gratuity

The company provides for gratuity, a defined benefit retirement plan covering eligible employees. Liabilities with regard to the Gratuity are determined by actuarial valuation as at the balance sheet date.

- Leave Encashment

The company provides for Leave Encashment, a defined benefit retirement plan covering all the employees. Liabilities with regard to the Leave Encashment are determined by actuarial valuation as at the balance sheet date.

(n) Borrowing Cost:

Borrowing costs attributable to acquisition and construction of assets are capitalized as part of the cost of such asset up to the date when such asset is ready for its intended use. Borrowing costs attributable to 'Maturation stocks' has been considered for valuation of semi-finished, as these stocks require a substantial period of time to bring them to saleable condition. Other Borrowing Costs are treated as revenue expenditure.

(o) Segment Reporting:

The company has considered business segment as reporting segment and accordingly identified Liquor, Glass, Contract and Systems as reporting business segments. Secondary segmental reporting is performed on the basis of the geographical location of the customers and accordingly segmental revenue is reported as revenue from India and from outside India.

(p) Related Party Transactions:

The related party relationships have been classified under the heads Subsidiary, Key Management Personnel, relatives of Key Management Personnel and Entities over which Key Management Personnel and / or their relatives are able to exercise significant influence

(q) Lease:

- Finance Lease Payments are apportioned between Finance Charges and reduction of lease liability as per the relevant agreements.

- Operating Lease payments are recognized in the Statement of Profit and Loss over the lease term.

(r) Earning per Share:

- Basic earning per share has been computed with reference to Weighted Average number of Shares outstanding at monthly rests.

- Diluted Earnings per share has been computed based on the basic earnings adjusted for all dilutive potential equity shares.

(s) Accounting for Taxes on Income:

Tax expense comprises of current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred income-tax reflects the impact of timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the Tax Laws and rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized on brought forward unabsorbed depreciation and brought forward losses only if there is a virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits. Deferred tax asset of earlier years is reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which, such deferred tax assets can be realized.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax asset and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and deferred tax liabilities relate to taxes on income levied by same governing taxation laws.

Minimum Alternate Tax (MAT) Credit recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each balance sheet date and the carrying amount of MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the company will pay normal income tax during the specified period.

(t) Impairment of Asset:

An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which the asset is identified as impaired, unless the asset is carried at revalued amount, in which case any impairment loss of a revalued asset is treated as a decrease in Revaluation Reserve. The impairment Loss recognized in prior accounting periods is reversed if there has been an increase in the estimate of recoverable value.

(u) Provision , Contingent Liabilities and Contingent Assets:

- A present obligation, as a result of past events which could be reliably estimated, is provided in the accounts, if it is probable that there will be an outflow of resources.

- Contingent liabilities are not recognized, but are disclosed at their estimate value by way of notes in the Financial Statements.

- Contingent Assets are neither recognized nor disclosed in the financial statements.

(v) Trade Receivables and Loans & Advances:

Trade receivables and Loans and Advances are stated after making adequate provision for those doubtful of recovery.

(w) Expenditure:

Expenses are accounted on accrual basis and provision is made for all known losses and liabilities.

(x) Excise Duty:

Excise duty recovered is included in the sale of products. Excise duty paid on dispatches and in respect of finished goods lying at factory premises are shown separately as an item of excise duty in the Statement of Profit and Loss and included in the valuation of Finished Goods.


Mar 31, 2011

(a) Accounting Convention:

The Financial Statements have been prepared under the Historical Cost Convention except for certain assets which are revalued in accordance with the Generally Accepted Accounting Practices in India

(b) Basis of Preparation:

The financial statements have been prepared to comply with material aspects regarding all accounting standards notified by Companies (Accounting Standard) rules, 2006 and the relevant provisions of the Companies Act, 1956.

(c) Estimates and Assumptions:

Preparation of Financial Statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the Balance Sheet and the reported amounts of income and expenses during the reporting period. Examples include provision for doubtful debts, useful life of assets, etc. Actual results may differ from these estimates.

(d) Inventories:

Inventory of raw material, stores, spares, materials in transit, work in progress, finished goods - both manufactured and traded are valued at lower of cost and net realizable value.

The cost is calculated on First-in First-Out basis and comprises of expenditure incurred in the normal course of business in bringing such inventory to its present location, and includes the borrowing cost that are attributable to maturation stocks which has been considered for valuation of semi- finished goods wherever applicable, and allocation of appropriate overheads based on normal level of activity.

Stock in Trade - Land is valued at the value on the date of conversion from capital asset to stock in Trade or the current market value, whichever is lower.

(e) Cash Flow Statements:

Cash Flow Statement has been prepared under "Indirect Method" as prescribed by Accounting Standard-3. Cash and Cash Equivalents comprise Cash in Hand, current and other accounts (Including Fixed Deposit) held with banks.

(f) Events occurring after the Balance Sheet Date:

Assets and Liabilities are adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts related to conditions existing at the balance sheet date.

(g) Net Profit or Loss for the period, prior period Items and Changes in Accounting Policies:

- Net Profit for the period:

All the items of income and expenses in the period are included in the determination of net Profit / Loss for the period, unless specifically mentioned elsewhere in the financial statements or is required by an Accounting Standard.

Prior Period item:

Income / Expenditure are disclosed in Prior Year Adjustments only when the value exceeds Rupees One Lakh in each case.

- Extra Ordinary items:

Extraordinary items, if any are disclosed in accordance with Accounting Standard - 5

(h) Depreciation Accounting:

Depreciation has been provided on fixed assets at the rates prescribed in Schedule XIV to the Companies Act 1956, on written down value method except for Plant & Machinery and Building of Distillery Division acquired prior to 31s' March 1999 and the assets of Paper Division where the depreciation has been provided on straight line basis. Depreciation on Oakwood barrels has been provided on written down value method @ 20%, based on technical evaluation. Depreciation is provided on pro-rata basis on additions and deletions from the date the assets were put to use and up to the date of sale / transfer, respectively. Plant & Machinery costing Rs.5,0007- and less is depreciated in full.

Certain Fixed Assets has been revalued during the year 1998-99. The depreciation charged on such Revalued assets is transferred from Revaluation reserve to the Profit & Loss Account.

(i) Revenue Recognition:

- Sales are recognized when the significant risks and rewards of ownership of the goods have passed to the buyer which coincides with the dispatch of goods to the customers. Sales are net of returns; sales tax collected and tax collected at source are not included in sales. Sales include excise duty and additional excise duty.

- Dividend on Investments is accounted in the year in which the right to receive is established.

- Income from services is recognized in accordance with the terms of the contract.

(j) Accounting for Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvements thereto, and includes inward freight, duties and taxes and incidental expenses related to acquisition and improvements. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalized. Expenses capitalized also include applicable borrowing costs till the date of commencement of production.

Assets acquired under hire purchase are capitalized to the extent of the principal value.

In case of Revaluation of Fixed assets, the difference between the written up value of the fixed assets revalued and the carrying amount in books will be transferred to Revaluation reserve.

(k) Accounting for Effect in Foreign Exchange Rates:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities on the balance sheet date are translated at year end exchange rates. Exchange difference arising on settlement of forex transactions and translation of monetary items is recognized as income or expense in the year in which they arise.

(I) Accounting for Investments:

- Long term investments are valued at cost. Provision is made to recognize a diminution other than temporary, in the value of each long-term investment.

- Current Investments are stated at lower of cost and fair value. (m) Accounting for Employee benefits:

- Short term benefits

Short term employee benefits expected to be paid in exchange for the services rendered by the employees is recognized during the period when the employee renders the services.

- Provident Fund

Provident fund is a defined contribution scheme as the Company pays fixed contribution at pre-determined rates. The obligation of the Company is limited to such fixed contribution. The contributions are charged to Profit & Loss Account.

- Gratuity

The company provides for gratuity, a defined benefit retirement plan covering eligible employees. Liabilities with regard to the Gratuity are determined by actuarial valuation as at the balance sheet date.

- Leave Encashment

The company provides for Leave Encashment, a defined benefit retirement plan covering all the employees. Liabilities with regard to the Leave Encashment are determined by actuarial valuation as at the balance sheet date.

(n) Borrowing Cost:

Borrowing costs attributable to acquisition and construction of assets are capitalized as part of the cost of such asset up to the date when such asset is ready for its intended use. Borrowing costs attributable to 'Maturation stocks' has been considered for valuation of semi-finished, as these stocks require a substantial period of time to bring them to saleable condition. Other Borrowing Costs are treated as revenue expenditure.

(o) Segment Reporting:

The company has considered business segment as reporting segment and accordingly identified Liquor, Glass, Contract and Systems as reporting business segments. Secondary segmental reporting is performed on the basis of the geographical location of the customers and accordingly segmental revenue is reported as revenue from India and from outside India.

(p) Related Party Transactions:

The related party relationships have been classified under the heads Subsidiary, Key Management Personnel, relatives of Key Management Personnel and Entities over which Key Management Personnel and / or their relatives are able to exercise significant influence.

(q) Lease:

- Finance lease payments are apportioned between Finance Charges and reduction of lease liability as per the relevant agreements.

- Operating Lease payments are recognized in the Profit and Loss Account over the lease term.

(r) Earning per Share:

- Basic earning per share has been computed with reference to Weighted Average number of Shares outstanding at monthly rests.

- Diluted Earnings per share has been computed based on the basic earnings adjusted for all dilutive potential equity shares.

(s) Accounting for Taxes on Income:

Tax expense comprises of current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred income-tax reflects the impact of timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the Tax Laws and rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized on brought forward unabsorbed depreciation and brought forward losses only if there is a virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits. Deferred tax asset of earlier years is reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which, such deferred tax assets can be realized.

(t) Impairment of Asset:

An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which the asset is identified as impaired. The impairment Loss recognized in prior accounting periods is reversed if there has been an increase in the estimate of recoverable value.

(u) Provision, Contingent Liabilities and Contingent Assets:

A present obligation, as a result of past events which could be reliably estimated, is provided in the accounts, if it is probable that there will be an outflow of resources.

- Contingent liabilities are not recognized, but are disclosed at their estimated value by way of notes in the Balance Sheet.

- Contingent Assets are neither recognized nor disclosed. (v) Sundry Debtors / Loans and Advances:

Sundry Debtors & Loans & Advances are stated after making adequate provision for those doubtful of recovery.

(w) Expenditure:

Expenses are accounted on accrual basis and provision is made for all known losses and liabilities.

(x) Excise Duty:

Excise duty recovered is included in the sale of products. Excise duty paid on dispatches and in respect of finished goods lying at factory premises are shown separately as an item of excise duty in the Profit and Loss account and included in the valuation of Finished Goods.


Mar 31, 2010

(a) Accounting Convention:

The Financial Statements have been prepared under the Historical Cost Convention except for certain assets which are revalued in accordance with the Generally Accepted Accounting Practices in India

(b) Basis of Preparation:

The financial statements have been prepared to comply with material aspects regarding all accounting standards notified by Companies (Accounting Standard) rules, 2006 and the relevant provisions of the Companies Act, 1956.

(c) Estimates and Assumptions:

Preparation of Financial Statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the Balance Sheet and the reported amounts of income and expenses during the reporting period. Examples include provision for doubtful debts, useful life of assets, etc. Actual results may differ from these estimates.

(d) Inventories:

Inventory of raw material, stores, spares, materials in transit, work in progress, finished goods - both manufactured and traded are valued at lower of cost and net realizable value.

The cost is calculated on First-in First-Out basis and comprises of expenditure incurred in the normal course of business in bringing such inventory to its present location, and includes the borrowing cost that are attributable to maturation stocks which has been considered for valuation of semi- finished goods wherever applicable, and allocation of appropriate overheads based on normal level of activity.

Stock in Trade - Land is valued at the value on the date of conversion from capital asset to stock in Trade or the current market value, whichever is lower.

(e) Cash Flow Statements:

Cash Flow Statement has been prepared under "Indirect Method" as prescribed by Accounting Standard-3. Cash and Cash Equivalents comprise Cash in Hand, current and other accounts (Including Fixed Deposit) held with banks.

(f) Events occurring after the Balance Sheet Date:

Assets and Liabilities are adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts related to conditions existing at the balance sheet date.

(g) Net Profit or Loss for the period, prior period Items and Changes in Accounting Policies:

- Net Profit for the period:

All the items of income and expenses in the period are included in the determination of net Profit / Loss for the period, unless specifically mentioned elsewhere in the financial statements or is required by an Accounting Standard.

- Prior Period item:

Income / Expenditure are disclosed in Prior Year Adjustments only when the value exceeds Rupees One Lakh in each case.

- Extra Ordinary items:

Extraordinary items, if any are accounted in accordance with Accounting Standard - 5

(h) Depreciation Accounting:

Depreciation has been provided on fixed assets at the rates prescribed in Schedule XIV to the Companies Act 1956, on written down value method except for Plant & Machinery and Building of Distillery Division acquired prior to 31st March 1999 and the assets of Paper Division where the depreciation has been provided on straight line basis. Depreciation on Oakwood barrels has been provided on written down value method @ 20%, based on technical evaluation. Depreciation is provided on pro-rata basis on additions and deletions from the date the assets were put to use and up to the date of sale / transfer, respectively. Plant & Machinery costing Rs.5,000/- and less is depreciated in full.

Certain Fixed Assets has been revalued during the year 1998-99. The depreciation charged on such Revalued assets is transferred from Revaluation reserve to the Profit & Loss Account.

(i) Revenue Recognition:

- Sales are recognized when the significant risks and rewards of ownership of the goods have passed to the buyer which coincides with the dispatch of goods to the customers. Sales are net of returns; sales tax collected and tax collected at source are not included in sales. Sales include excise duty and additional excise duty.

- Dividend on Investments is accounted in the year in which the right to receive is established.

- Income from services is recognized in accordance with the terms of the contract.

(j) Accounting for Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvements thereto, and includes inward freight, duties and taxes and incidental expenses related to acquisition and improvements. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalized. Expenses capitalized also include applicable borrowing costs till the date of commencement of production.

Assets acquired under hire purchase are capitalized to the extent of the principal value.

In case of Revaluation of Fixed assets, the difference between the written up value of the fixed assets revalued and the carrying amount in books will be transferred to Revaluation reserve.

(k) Accounting for Effect in Foreign Exchange Rates:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities on the balance sheet date are translated at year end exchange rates. Exchange difference arising on settlement of forex transactions and translation of monetary items is recognized as income or expense in the year in which they arise.

(l) Accounting for Investments:

- Long term investments are valued at cost. Provision is made to recognize a diminution other than temporary, in the value of each long-term investment.

- Current Investments are stated at lower of cost and fair value. (m) Accounting for Employee benefits:

- Short term benefits

Short term employee benefits expected to be paid in exchange for the services rendered by the employees is recognized during the period when the employee renders the services.

- Provident Fund

Provident fund is a defined contribution scheme as the Company pays fixed contribution at pre-determined rates. The obligation of the Company is limited to such fixed contribution. The contributions are charged to Profit & Loss Account.

- Gratuity

The company provides for gratuity, a defined benefit retirement plan covering eligible employees. Liabilities with regard to the Gratuity are determined by actuarial valuation as at the balance sheet date.

- Leave Encashment

The company provides for Leave Encashment, a defined benefit retirement plan covering all the employees. Liabilities with regard to the Leave Encashment are determined by actuarial valuation as at the balance sheet date.

(n) Borrowing Cost:

Borrowing costs attributable to acquisition and construction of assets are capitalized as part of the cost of such asset up to the date when such asset is ready for its intended use. Borrowing costs attributable to Maturation stocks has been considered for valuation of semi-finished, as these stocks require a substantial period of time to bring them to saleable condition. Other Borrowing Costs are treated as revenue expenditure.

(o) Segment Reporting:

The company has considered business segment as reporting segment and accordingly identified Liquor, Glass, Contract and Systems as reporting business segments. Secondary segmental reporting is performed on the basis of the geographical location of the customers and accordingly segmental revenue is reported as revenue from India and from outside India.

(p) Related Party Transactions:

The related party relationships have been classified under the heads Subsidiary, Key Management Personnel, relatives of Key Management Personnel and Entities over which Key Management Personnel and / or their relatives are able to exercise significant influence

(q) Lease:

- Finance lease payments are apportioned between Finance Charges and reduction of lease liability as per the relevant agreements.

- Operating Lease payments are recognized in the Profit and Loss Account over the lease term.

(r) Earning per Share:

- Basic earning per share has been computed with reference to Weighted Average number of Shares outstanding at monthly rests.

- Diluted Earnings per share has been computed based on the basic earnings adjusted for all dilutive potential equity shares.

(s) Accounting for Taxes on Income:

Tax expense comprises of current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred income-tax reflects the impact of timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the Tax Laws and rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized on brought forward unabsorbed depreciation and brought forward losses only if there is a virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits. Deferred tax asset of earlier years is reassessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which, such deferred tax assets can be realized.

(t) Impairment of Asset:

An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which the asset is identified as impaired. The impairment Loss recognized in prior accounting periods is reversed if there has been an increase in the estimate of recoverable value.

(u) Provision, Contingent Liabilities and Contingent Assets:

- A present obligation, as a result of past events which could be reliably estimated, is provided in the accounts, if it is probable that there will be an outflow of resources.

- Contingent liabilities are not recognized, but are disclosed at their estimated value by way of notes in the Balance Sheet.

- Contingent Assets are neither recognized nor disclosed.

(v) Sundry Debtors / Loans and Advances:

Sundry Debtors & Loans & Advances are stated after making adequate provision for those doubtful of recovery.

(w) Expenditure:

Expenses are accounted on accrual basis and provision is made for all known losses and liabilities.

(x) Excise Duty:

Excise duty recovered is included in the sale of products. Excise duty paid on dispatches and in respect of finished goods lying at factory premises are shown separately as an item of excise duty in the Profit and Loss account and included in the valuation of Finished Goods.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X