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Accounting Policies of Pincon Spirit Ltd. Company

Mar 31, 2015

A. CORPORATE INFORMATION

Pincon Spirit Limited (referred to as "PSL" or "the Company") (CIN No: L67120WB1978PLC031561) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on The Calcutta Stock Exchange Limited & BSE Limited in India. The company is engaged in carrying on the Business of Blending, Bottling & Wholesale Distributions of Indian Made Foreign Liquor ("IMFL"), Indian Made Indian Liquor ("IMIL") & Refining, Packaging & Wholesale Distributions of Fast Moving Consumer Goods ("FMCG").

a. Basis of Preparation of the Financial Statements

The financial statements have been prepared in compliance with the Generally Accepted Accounting Principles in India ("Indian GAAP") and the Accounting Standards notified under relevant provisions of the Companies Act, 2013.

These financial statements have been prepared on accrual basis under historical cost convention and are presented in Indian Rupees, rounded off to the nearest Rupee.

b. Use of Estimates

The preparation of the financial statements in conformity with the Indian GAAP requires Management of the Company to make estimates, judgments and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Any difference between the actual results and estimates are recognised in the period in which the results are known / materialised.

c. Fixed Assets

i. Tangible Assets

Tangible Assets are stated at cost, net of taxes, discounts plus revaluations, if any, less accumulated depreciation & impairment loss, if any.

The Cost includes the purchase price plus other attributable costs for bringing the assets to its working condition for intended use.

Any subsequent expenditure relating to the Tangible Assets which increase the future benefits are added to the book value of the tangible assets.

Expenditure relating Tangible Assets that are not ready for their intended use are disclosed under Capital Work-in-Progress.

ii. Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

d. Leases

The Company has no assets under Operating Lease or Financial Lease.

e. Depreciation & Amortisation

In Tangible Fixed Assets (other than freehold land & capital work-in-progress), acquired during the year, depreciation / amortization is charged on Written Down Method so as to write off the cost of the Assets over the useful lives and in regard to the Tangible Assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life as prescribed in Schedule II of the Companies Act, 2013.

f. Impairment

In case an asset is treated as impaired when the carrying cost of asset exceeds its recoverable value, an impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

g. Investments

Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Non-Current investments are stated at cost. Provision for diminution in the value of Non-Current investments is made only if such a decline is other than temporary.

h. Inventories

Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

i. Employee Benefits

There is no employee who is in receipt of remuneration in excess of the limits specified.

j. Revenue Recognition

Revenue is recognised only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, tax, excise duty, adjusted for discounts (net).

Dividend income, if any, is recognised when right to receive payment is established.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

k. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred.

l. Foreign Currency Transactions

The Company has no foreign currency transactions during the period under review.

m. Cash and Cash Equivalents

Cash and Cash Equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

n. Conservation of Energy & Technology absorption

In view of the activities of the Company the matters related to conservation of Energy & Technology are not applicable to the Company.

o. Due to Micro/ Small Industrial Enterprises

The Company has not received any information from any of the suppliers of their being a micro/ small scale industrial enterprise, hence the amount due to such units outstanding as at the year ended 31.03.2015 is not ascertainable.

p. Income Tax

Provision is made for Income Tax on a yearly basis under the tax payable method based on tax liability as computed after taking credit for allowances, expenses. In case of matters under appeal due to disallowance or otherwise, full provision is made when the liabilities are accepted. Deferred Tax is recognized on timing differences between taxable income and accounting income subject to a consideration of prudence.

q. Earnings per Share (EPS)

Basic EPS is arrived at based on Net Profit after Taxation available to equity shareholders to the weighted average number of equity shares outstanding during the year. The Diluted EPS is calculated on the same basis as Basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is anti-dilutive.

r. Provisions

A provision is recognised when an enterprise has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions, other than employee benefits, are not discounted to their present value and are determined based on management estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.

s. Contingent Liabilities/Assets

No provision is made for liabilities which are contingent in nature. Provision is made for those contingencies which are likely to materialize into liabilities after the year end till the date of finalization of accounts and have material effect on the position stated in the Balance Sheet.


Mar 31, 2014

A. Basis for preparation of Accounts:

The Financial Statements are prepared on the basis of historical cost convention, adopting mercantile system of accounting and recognizing income and expenditure on accrual basis unless there are any specified remarks otherwise against any item. These financial statements have been prepared to comply in all material aspects with the accounting standards issued by Institute of Charted Accountant of India and relevant provisions of the Companies Act, 1956.

B. Fixed Assets

i. Fixed assets are stated at their original cost of acquisition and subsequent improvements thereto including taxes, duties, freight and other incidental expenses related to acquisition and installation of the assets concerned, except amounts adjusted on revaluation and amalgamation. Interest on borrowings attributable to qualifying assets are capitalised and included in the cost of fixed assets as appropriate.

ii. The costs of Fixed Assets acquired in amalgamations are determined at their fair values, on the date of acquisition or nearer thereto, or as approved under the schemes of amalgamation.

iii. Assets held for disposal are stated at their net book value or estimated net realisable value, whichever is lower.

iv. Intangible assets are stated at the consideration paid for acquisition less accumulated amortization and impairment losses if any.

C. Depreciation :

Depreciation on fixed assets has been provided on written down value at the rates specified in Schedule XiV of the Companies Act, 1956, as amended vide Notification GSR 756(E) dated 16th December, 1993, maximum upto 95% of the original cost of the asset.

D. Impairment

Impairment loss, if any, is provided to the extent the carrying amounts of assets exceed their recoverable amount.

Recoverable amount is higher of the net selling price of an asset and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

E. Inventories

Inventories are valued at lower of cost and net realisable value. The costs are, in general, ascertained under Weighted Average Method. Excise/ Customs duty payable on stocks in bond is added to the cost. Due allowance is made for obsolete and slow moving items.

F. Cash and Cash Equivalents

Cash and Cash Equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

G. Revenue Recognition

Sales are recognised when goods are dispatched from distilleries/ warehouses of the Company in accordance with the terms of sale except where such terms provide otherwise, where sales are recognised based on such terms. Gross Sales are inclusive of excise duty but are net of trade discounts and sales tax, where applicable.

H. Investments :

Investments are stated at cost and are long term in nature.

I. Particulars of Employees

There is no employee who is in receipt of remuneration in excess of the limits specified.

J. Conservation of Energy & Technology absorption

In view of the Trading activities of the Company the matters related to conservation of Energy & Technology are not applicable to the Company

K. Due to Micro/ Small Industrial Enterprises

The Company has not received any information from any of the suppliers of their being a micro/ small scale industrial enterprise, hence the amount due to such units outstanding as at the year ended 31.03.2014 is not ascertainable.

L. Income Tax

Provision is made for Income Tax on a yearly basis under the tax payable method based on tax liability as computed after taking credit for allowances, expenses. In case of matters under appeal due to disallowance or otherwise, full provision is made when the liabilities are accepted. Deferred tax is recognized on timing differences between taxable income and accounting income subject to a consideration of prudence.

M. Earnings per Share (EPS)

Basic EPS is arrived at based on Net Profit after Taxation available to equity shareholders to the weighted average number of equity shares outstanding during the year. The Diluted EPS is calculated on the same basis as Basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is anti- dilutive.

N. Provisions

A provision is recognised when an enterprise has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions, other than employee benefits, are not discounted to their present value and are determined based on management estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.

O. Contingent Liabilities/Assets

No provision is made for liabilities which are contingent in nature. Provision is made for those contingencies which are likely to materialize into liabilities after the year end till the date of finalization of accounts and have material effect on the position stated in the Balance Sheet.

Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements

P. Share issue expenses

Share issue expenses incurred are adjusted to the Securities Premium Account as permitted by Section 78(2) of the Companies Act, 1956.

Q. Expenditure

Expenses are net of taxes recoverable, where applicable.

R. General

The Company has a policy of authorizing expenditure based on reasonable checks and balances. The policy is intended to ensure that expenses are authorized on the basis of contractual obligations or accepted business practices having regard to the company''s business need and exigencies. In terms of these observations we have not come across any expenses charged to the Revenue Account of the Company, which, in our opinion and according to explanations given to us could be regarded as personal expenses.


Mar 31, 2013

A. General

The Financial Statements are prepared on the basis of historical cost convention, adopting mercantile system of accounting and recognizing income and expenditure on accrual basis unless there are any specified remarks otherwise against any item.

b. Fixed Assets

Fixed Assets are stated at cost less depreciation as per the written down value method

c. Contingent Liability

No provision is made for liabilities which are contingent in nature. Provision is made tor those contingencies which are likely to materialize into liabilities after the year end till the date of finalization of accounts and have material effect on the position stated in the Balance Sheet.

d. Revenue Recognition

Revenue is recognized on accrual basis, when significant certainty as to its determination or realization exists.

e. Inventories

Inventories are valued at lower of cost or market price whichever is lower.


Mar 31, 2012

A) General

The Financial Statements are prepared on the basis of historical cost convention, adopting mercantile system of accounting and recognizing income and expenditure on accrual basis unless there are any specified remarks otherwise against any item.

b) Fixed Assets

Fixed Assets are stated at cost less depreciation as per the written down value method

c) Contingent Liability

No provision is made for liabilities which are contingent in nature. Provision is made for those contingencies which are likely to materialize into liabilities after the year end till the date of finalization of accounts and have material effect on the position stated in the Balance Sheet.

d) Revenue Recognition

Revenue is recognized on accrual basis, when significant certainty as to its determination or realization exists.

e) Inventories

Inventories are valued at lower of cost or market price whichever is lower.


Mar 31, 2011

1.General

The Financial Statements are prepared on the basis of historical cost convention, adopting mercantile system of accounting and recognizing income and expenditure on accrual basis unless there are any specified remarks otherwise against any item.

2. Fixed Assets

Fixed Assets are stated at cost less depreciation as per the written down value method.

3. Contingent Liability

No provision is made for liabilities which are contingent in nature. Provision is made for those contingencies which are likely to materialize into liabilities after the year end till the date of finalization of accounts and have material effect on the position stated in the Balance Sheet.

4. Revenue Recognition

Revenue is recognized on accrual basis, when significant certainty as to its determination or realization exists.

5. Inventories

Inventories are valued at cost or market price, whichever is lower.

2. Parti culars of Employees

There is no employee who is in receipt of remuneration in excess of the limits specified.

3. Conservation of Energy & Technology absorption

In view of the Trading activities of the Company the matters related to Conservation of Energy & Technology absorption are not applicable to the company.

4. Due to Micro/ Small Industrial Enterprises

The Company has not received any information from any of the suppliers of their being a micro/ small scale industrial enterprise, hence the amount due to such units outstanding as at the year ended 31.03.2011 is not ascertainable.

5. Income Tax

Provision is made for Income Tax on a yearly basis under the tax payable method based on tax liability as computed after taking credit for allowances, expenses. In case of matters under appeal due to disallowance or otherwise, full provision is made when the liabilities are accepted.

6. Directors Remuneration and Commission

The Directors during the year under review have waived their sitting fees for attending the meeting of the Board.

7. General

The Company has a policy of authorizing expenditure based on reasonable checks and balances. The policy is intended to ensure that expenses are authorized on the basis of contractual obligations or accepted business practices having regard to the company''s business need and exigencies. In terms of these observations we have not come across any expenses charged to the Revenue Account of the Company, which, in our opinion and according to explanations given to us could be regarded as personal expenses.

Previous Year figures have been re-arranged and are grouped wherever necessary.

 
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