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

Accounting Policies of Tirupati Starch & Chemicals Ltd. Company

Mar 31, 2015

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements of the Company have been prepared the under historical cost convention on accrual basis in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under the Companies (Indian Accounting Standards) Rules, 2015 and the relevant provisions of the Companies Act, 2013. The accounting policies have been consistently applied by the company unless otherwise stated.

(b) USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, the difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(c) FIXED ASSETS :

All Tangible Fixed Assets including of its expansion project are stated at their original cost less depreciation (Net of Modat/Cenvat, VAT and Service Tax). The Preoperative and Project expenses including borrowing cost, installation cost and any cost directly attributable to bringing the assets to its working condition for its intended use and which are not attributable to a particular assets have been allocated between Plant and Machineries and Building in the ratio of investment. Company has identified that there is no material impairment of assets and as such no provision is made as per AS-28 issued by Institute of Chartered Accountants of India.

(d) INVESTMENT :

The Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of investment whereas the current investments are carried individually, at lower of cost and fair value. The cost of investments includes acquisition charges such as brokerage, fees and duties.

(e) Foreign Currency Loans availed for acquiring fixed assets had been translated at the exchange rate prevailing at the end of the year. The exchange difference on conversion was adjusted to cost of fixed assets.

(f) DEPRECIAITION :

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the straight line method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 and on addition/deletion during the year on pro-rata quarterly basis including the quarter of addition/deletion in accordance with the provision of Schedule II of the Act. In case of fixed assets which have completed their useful life as on 1st April 2014, the carrying value (Net of residual value) amounting to Rs.8,58,928.96 (Net of deferred tax Rs.4,42,271.00) as a transitional provision has been recognized in the retained earning.

i) Further in case of other assets acquired prior to 1st April, 2014 the carrying value of assets (Net of residual values) is depreciated over the remaining useful life as determined effecting from 1st April 2014.

ii) Depreciation for the year would have been lower by Rs.1,25,950.78 had the company continued with the previous assessment of useful life of such assets.

(g) BORROWING COSTS

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized 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.

(h) REVENUE RECOGNITION

Revenue from sale of goods is recognized 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, excise duty and sales during trial run period net of trade discounts. Revenue from sale of services, interest and other income are recognized on accrual basis but the dividend, government grants/subsidies (Including Capital and Revenue) is recognized in the year of receipt.

(i) INVENTORIES :

The Inventories are valued as under :

(i) Stores & Spares (at cost on FIFO basis) : It includes Coal, Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and Packing Materials and other stores items.

(ii) Raw Material-Maize (At cost on FIFO Basis).

(iii) Stock in Process (At cost)

(a) Quantity and value of Stock in Process of Raw Starch is not ascertainable on regular basis due to constant change in its contents, which is complex and technical in nature, therefore, at the year end on actual & technical basis quantity and value was ascertained.

(b) Quantity of stock in process of Dextrose Plant is ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technical valuation.

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH.

(v) By-products and DAH & DMH (At realisable value).

(vi) The Stock on Consignment lying with other parties duly acknowledged by the custodians are included in the inventories at Market value including Excise Duty paid thereon. The Closing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any.

(vii) The sale on consignment basis is treated as sales on receipt of sales advice from the consignee.

(viii) The consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & other expenses related to consignment are included in consignment sales separately amounting to Rs.70,25,782/- (74,98,406/-).

(j) Certain directly attributable pre-operative expenses during construction period for expansion are included under Capital work in progress and have been capitalized at the commencement of production and when the assets were put in use and in case of other expenses 33% (12.5%) of employee benefit expenses and 30% (10%) of administrative expenses and 25% of power and fuel expenses during the trial run and implementation of the project during the year have been allocated to preoperative and project expenses account for expansion and have been allocated to Fixed Assets.

(k) CENVAT CREDIT :

a. Cenvat Credit on Capital Goods has been treated as Cenvat Credit receivable by reducing the cost of fixed assets and balance if any, is included in other advances recoverable in cash or in kind or for value to be received.

b. For claim of CENVAT Credit on Capital Goods and inputs the classification between Capital Goods and inputs are made on the basis of Excise records.

c. Modvat/Centvat Credit on Purchase of raw & other material is reduced from the cost of such materials purchased at the time of purchase itself in excise records and the same is accounted for at year end in the accounts.

d. Credit for Service Tax on services is availed by reducing the cost of respective services.

(l) Interdivisional transfer is not treated as sales and Raw Material Consumption in view of announcement made by the Institute of Chartered Accountants of India on Accounting Standard (AS) 9. It is not affecting the Profit/Loss of the Company.

(m) EMPLOYEE BENEFITS:

The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme for Life Insurance Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The payment is made as per computation made by LIC therefore no note is taken of the difference in the amount of actuarial liability and the balance in the fund with LIC.

The company is in process to implement it in terms of Revised AS-15 issued by the Institute of Chartered Accountants of India as regards the other employee benefit and presently recognizing the same on the actual payment basis and charged to Profit and Loss Account in the year it has been incurred.

(n) EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss after tax attributable to equity shareholders, including deferred tax provision, by the weighted average number of equity shares outstanding during the year and has been computed in accordance with Accounting Standard 20 issued by the Institute of Chartered Accountants of India.

(o) TAXATION:

Tax expenses comprises of current tax & deferred tax. Current tax is determined as per the provisions of the Income tax Act, 1961 in respect of Taxable Income for the year. Deferred Tax Liability is computed as per Accounting Standard [AS-22]. Deferred Tax Assets and Deferred Tax Liability are recognized for all timing differences subject to consideration of prudence, applying the tax rates that have been substantively enacted on closing date.

Minimum Alternative Tax (MAT) credit is 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. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountant of India.

(p) IMPAIRMENT OF ASSETS:

All the fixed assets including intangible assets, if any, are assessed for any indication of impairment at the end financial year. On such indication, the impairment (being the excess of carrying value over the asset) is charged to the Profit and Loss account in the respective financial year. Recoverable amount is higher of the net selling price of an asset and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

(q) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

The company recognizes a provision when there is present obligation as a result of a past event that probably requires an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. A disclosure for a contingent liability made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.


Mar 31, 2014

(a) FIXED ASSETS:

All Tangible Fixed Assets are staged at their original cost less depreciation (Net of Medvat VA1 and Service Tax). Preoperation expanses are capitalised. Company has identfied that there is no material impairment of assets and as such no provison is mace as per AS-28 issued by Institute of Chartered Accountants of India The Company is in process of sot of its expansion project and the expenses related thereto have been kept as capital work in progress & No depreciation has been charged thereon

(b) INVESTMENT

Investments are carried at cost

(C) Foreign Currency loans evailed for acquiring fixed assets had beer translated at the exchange rate prevailing at the end of the year The exchange difference on conversion was adjusted to cost of fixed assets

(1) DEPRECIAITICN

Depreciation has beer provided an straight line method el the rotes specified in Schedule XIV of the Companies Act. 1656 so amended on prorata basis.

(e) INVENTORIES

The Inventories are valued as under

(i) Stores & Spares (at cost on FIFO basis)

It includes Coal. Sulpher, Lime Alum Sail. Funacs Oil. Activated Carbon, Enzymes and Packing Materials and other stores items

(ii) Raw Material-Maize At cos: on MFO Baser

(iII) Stock in Process (At cost)

(a) Quantity and value of Stock in Process uf Raw Starch is not ascerainable on regular basis due to constant change in its contents which is complex technical in nature, there are at the year end on actual & technical basis quantity and value was ascertained

(bi Quantity of stock In process of Dextrose? Plant are ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technics vauation

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH,

(v) By-products and DAH & DMH (At -realisable value)

(vi) The-Stock on Consignment lying with other parity duly acknowledged by the custodians are included in the riventories at Market value including Excise Duty pad thereon The Cosing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any

(vi) The sale or Consignnnent basis are treated as Sales on receipt of sales Advice from He consignee

(viii) The Consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & othe- expenses related to consignment are included in consignment sales separately amounting to Rs. 74,98 406/- 63.31 ,616,r ).

(f) Certain directly attributable pre-operative expenses curing construction period for expansion are included under Capital work in progress and in case of other expenses 12.5% (16%) of employee benefit expenses and 10% (10%) of administrative expenses have been allocated to preoperative and project expenses account for expans on anc also included under Capital work in progress one' these exponses will be allocated to Fixed Assets when the same are ready for intended use

(g) The Preliminary and Public Issue Expenses are written off equaly ever a period of 1C years from the year of commencement of production at Dextrose Plant The expenses not related to public issue bad been transferred to Deferred Revenue Expenditure and had been written off equally over a period of 5 years from the year of commencement of production at Dextrose Plant.

(h) Cenvat Credit:

(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit Receivable by reducing the cos: of fixed assets aid balance if any s included in other advances recoverable in cash or in kind or for value to be received

(ii) For claim of CENVAT Credit on Capital Gooes and inputs the classification between Capital Goods and inputs are made on the basis of Excise records

(iii) Modval Credit on Purchase of raw & other materials is reduced from the cost of such materials purchased at :he time of purchase itself in excise records and the same is accounted for at year end ir the accounts

(iv) Credit lor Service Tax on Services are availed by reducing the Cost of respective services.

(i) Interdivisional transfer is no! treated as Sales and Raw Material Consumption in view of announcement made by the institute of Chartered Accountants of India on Accounting Standard (AS) G. It is not affecting the Profit/loss of the company,

(j) No provision has been made towards iiabibility for leave encashment benefits. The company is in process to implement i: in terms of Revised AS 15 issued by the Institute of Chartered Accountants of India The amount is not ascertainable as or Balance Sheet date and further the company is in process of implemention,

(k) The Company has taken a Group Gratuity Policy for providing gratuity benefits unde" Group Gratuity Scheme for Life insurance Corporation of India (LJC) and the premium paid to the LIC is charged to Profit & loss A/c. The payment is made as per compation made by LIC therefore no note is taken of the difference in the amount of actuarial liablily and the balance in the fund with -IC The same is subject to approval of Scheme by Commissoner of Income Tax.

The Company had opted for Group Superannuation Scheme of LIC of India for its Directors and the contribution paid to LlC of India was charged to the Statement of Profit & Loss. The same was also subject to approva of Scheme by Commissioner of income Tax During the year the company has made a payment of Rs. 36.00,000/- towards contribution tc LIC GGCA Scheme. During the year, alI the whole time directors had decided not to take remuneration w.e.f November 2013 hence there after they are continuing as the Director's and they have withdrawn the amount payable to them under the Lic GGCA Scheme,


Mar 31, 2013

(a) FIXED ASSETS :

All Tangible Fixed Assets are stated at their original cost less depreciation (Net of Modvat VAT and Service Tax). Preoperation expenses are capitalised. Company has identified that there is no material impairment of assets and as such no provision is made as per AS-28 issued by Institute of Chartered Accountants of India. The Company is in process of set of its expansion project and the expenses related thereto have been kept as capital work in progress & No depreciation has been charged thereon.

(b) INVESTMENT : Investments are carried at cost.

(c) Foreign Currency Loans availed for acquiring fixed assets had been translated at the exchange rate prevailing at the end of the year. The exchange difference on conversion was adjusted to cost of fixed assets.

(d) DEPRECIAITION :

Depreciation has been provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 as amended on prorata basis.

(e) INVENTORIES :

The Inventories are valued as under :

(i) Stores & Spares (at cost on FIFO basis) : It includes Coal, Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and Packing Materials and other stores items.

(ii) Raw Material-Maize (At cost on FIFO Basis).

(iii) Stock in Process (At cost)

(a) Quantity and value of Stock in Process of Raw Starch is not ascertainable on regular basis due to constant change in its contents, which is complex technical in nature, therefore, at the year end on actual & technical basis quantity and value was ascertained.

(b) Quantity of stock in process of Dextrose Plant are ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technical valuation.

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH.

(v) By-products and DAH & DMH (At realisable value).

(vi) The Stock on Consignment lying with other parties duly acknowledged by the custodians are included in the inventories at Market value including Excise Duty paid thereon. The Closing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any.

(vii) The sale on Consignment basis are treated as Sales on receipt of Sales Advice from the consignee.

(viii) The Consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & other expenses related to consignment are included in consignment sales separately amounting to Rs. 63,31,916/- (71,32,665/-).

(f) 20% of the preoperative expenses incurred till the commencement of production had been treated as Deferred Revenue Expenditure and the same are written off equally over a period of 5 years from the year of commencement of production at Dextrose plant.

(g) The Preliminary and Public Issue Expenses are written off equally over a period of 10 years from the year of commencement of production at Dextrose Plant. The expenses not related to public issue had been transferred to Deferred Revenue Expenditure and had been written off equally over a period of 5 years from the year of commencement of production at Dextrose Plant.

(h) Cenvat Credit :

(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit Receivable by reducing the cost of fixed assets and balance if any is included in other advances recoverable in cash or in kind or for value to be received.

(ii) For claim of CENVAT Credit on Capital Goods and inputs the classification between Capital Goods and inputs are made on the basis of Excise records.

(iii) Modvat Credit on Purchase of raw & other material is reduced from the cost of such materials purchased at the time of purchase itself in excise records and the same accounted for at year end in the accounts.

(iv) Credit for Service Tax on Services are availed by reducing the Cost of respective services.

(i) Interdivisional transfer is not treated as Sales and Raw Material Consumption in view of announcement made by the Institute of Chartered Accountants of India on Accounting Standard (AS) 9. It is not affecting the Profit/loss of the company.

(j) No provision has been made towards liability for leave encashment benefits. The company is in process to implement it in terms of Revised AS-15 issued by the Institute of Chartered Accountants of India. The amount is not ascertainable as on Balance Sheet date and further the company is in process of implementation.

(k) The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme for Life Insurance Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The payment is made as per computation made by LIC therefore no note is taken of the difference in the amount of actuarial liability and the balance in the fund with LIC. The same is subject to approval of Scheme by Commissioner of Income Tax.

The Company had opted for Group Supreannuation Scheme of LIC of India for its Directors and the contribution paid to LIC of India was charged to the Statement of Profit & Loss. The same was also subject to approval of Scheme by Commissioner of Income Tax. During the year the company has made a payment of Rs.Nil (Nil).


Mar 31, 2012

(a) FIXED ASSETS:

All Tangible Fixed Assets are stated at their original cost less depreciation (Net of Modvat VAT and Service Tax). Preoperation expenses are capitalised. Company has identified that there is no material impairment of assets and as such no provision is made as per AS-28 issued by Institute of Chartered Accountants of India. The Company is in process of set of its expansion project and the expenses related theretohave been kept as capital work in progress & no depreciation has been charged thereon.

(b) INVESTMENT:

Investments are carried at cost.

(c) Foreign Currency Loans availed for acquiring fixed assets had been translated at the exchange rate prevailing at the end of the year. The exchange difference on conversion was adjusted to cost of fixed assets.

(d) DEPRECIATION:

' Depreciation has been provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 as amended on prorata basis.

(e) INVENTORIES:

The Inventories are valued as under:

(i) Stores & Spares (at cost on FIFO basis): It includes Coal, Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and Packing Materials and other stores items.

(ii) Raw Material-Maize (At cost on FIFO Basis).

(iii) Stock in Process (At cost)

(a) Quantity and value of Stock in Process of Raw Starch is not ascertainable on regular basis due to constant change in its contents, which is complex technical in nature, therefore, at the year end on actual & technical basis quantity and value was ascertained.

(b) Quantity of stock in process of Dextrose Plant are ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technical valuation.

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH.

(v) By-products and DAH & DMH (At realisable value).

(vi) The Stock on Consignment lying with other parties duly acknowledged by the custodians are included in the inventories at Market value including Excise Duty paid thereon. The Closing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any.

(vii) The sale on Consignment basis are treated as Sales on receipt of Sales Advice from the consignee.

(viii) The Consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & other expenses related to consignment are included in consignment sales separately amounting to Rs.71,32,665/-. (30,69,301/-).

(f) 20% of the preoperative expenses incurred till the commencement of production had been treated as Deferred Revenue Expenditure and the same are written off equally over a period of 5 years from the year of commencement of production at Dextrose plant.

(g) The Preliminary and Public Issue Expenses are written off equally over a period of 10 years from the year of commence- ment of production at Dextrose Plant. The expenses not related to public issue had been transferred to Deferred Revenue Expenditure and had been written off equally over a period of 5 years from the year of commencement of production at Dextrose Plant.

(h) Cenvat Credit:

(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit Receivable by reducing the cost of fixed assets and balance if any is included in other advances recoverable in cash or in kind or for value to be received.

(ii) For claim of CENVAT Credit on Capital Goods and inputs the classification between Capital Goods and inputs are made on the basis of Excise records.

(iii) Modvat Credit on Purchase of raw & other material is reduced from the cost of such materials purchased at the time of purchase itself in excise records and the same accounted for at year end in the accounts.

(iv) Credit for Service Tax on Services are availed by reducing the Cost of respective services.

(i) Interdivisional transfer is not treated as Sales and Raw Material Consumption in view of announcement made by the Institute of Chartered Accountants of India on Accounting Standard (AS) 9. It is not affecting the Profit/loss of the company.

(i) No provision has been made towards liability for leave encashment benefits. The company is in process to implement it in terms of Revised AS-15 issued by the Institute of Chartered Accountants of India. The amount is not ascertainable as on Balance Sheet date and further the company is in process of implementation.

(k) The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme from Life Insurance Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The payment is made as per computation made by LIC therefore no note is taken of the difference in the amount of actuarial liability and the balance in the fund with LIC. The same is subject to approval of Scheme by Commissioner of Income Tax.

The Company had opted for Group Supreannuation Scheme of LIC of India for its Directors and the contribution paid to LIC of India was charged to Profit & Loss Account. The same was also subject to approval of Scheme by Commissioner of Income Tax. During the year the company has made a payment of Rs. Nil (6,37,200/-).


Mar 31, 2011

(a) FIXED ASSETS:

All Tangible Fixed Assets are stated at their original cost less depreciation (Net of Modvat VAT and Service Tax). Preparation expenses are capitalised. Company has identified that there is no material impairment of assets and as such no provision is made as per AS-28 issued by Institute of Chartered Accountants of India.

(b) INVESTMENT:

Investments are carried at cost.

(c) Foreign Currency Loans availed for acquiring fixed assets had been translated at the exchange rate prevailing at the end of the year. The exchange difference on conversion was adjusted to cost of fixed assets.

(d) DEPRECIATION:

Depreciation has been provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 as amended on prorata basis.

(e) INVENTORIES:

The Inventories are valued as under:

(i) Stores & Spares (at cost oh FIFO basis) : It includes Coal, Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and Packing Materials and other stores items.

(ii) Raw Material-Maize (At cost on FIFO Basis).

(iii) Stock in Process (At cost)

(a) Quantity and value of Stock in Process of Raw Starch is not ascertainable on regular basis due to constant change in its contents, which is complex technical in nature, therefore, at the year end on actual & technical basis quantity and value was ascertained.

(b) Quantity of stock in process of Dextrose Plant are ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technical valuation.

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH.

(v) By-products and DAH & DMH (At realisable value).

(vi) The Stock on Consignment lying with other parties duly acknowledged by the custodians are included in the inventories at Market value including Excise Duty paid thereon. The Closing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any.

(vii) The sale on Consignment basis are treated as Sales on receipt of Sales Advice from the consignee.

(viii) The Consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & other expenses related to consignment are included in consignment sales separately amounting to Rs.30,69,301/-. (33,67,782/-).

(f) 20% of the preoperative expenses incurred till the commencement of production had been treated as Deferred Revenue Expenditure and the same are written off equally over a period of 5 years from the year of commencement of production at Dextrose plant.

(g) The Preliminary and Public Issue Expenses are written off equally over a period of 10 years from the year of commence- ment of production at Dextrose Plant. The expenses not related to public issue had been transferred to Deferred Revenue Expenditure and had been written off equally over a period of 5 years from the year of commencement of production at Dextrose Plant.

(h) Cenvat Credit:

(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit Receivable by reducing the cost of fixed assets and balance if any is included in other advances recoverable in cash or in kind or for value to be received.

(ii) For claim of CENVAT Credit on Capital Goods and inputs the classification between Capital Goods and inputs are made on the basis of Excise records.

(iii) Modvat Credit on Purchase of raw & other material is reduced from the cost of such materials purchased at the time of purchase itself in excise records and the same accounted for at year end in the accounts.

(iv) Credit for Service Tax on Services are availed by reducing the Cost of respective services.

(i) Interdivisional transfer is not treated as Sales and Raw Material Consumption in view of announcement made by the Institute of Chartered Accountants of India on Accounting Standard (AS) 9. It is not affecting the Profit/loss of the company.

(j) No provision has been made towards liability for leave encashment benefits. The company is in process to implement it in terms of Revised AS-15 issued by the Institute of Chartered Accountants of India. The amount is not ascertainable as on Balance Sheet date and further the company is in process of implementation.

(k) The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme from Life Insurance Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The payment is made as per computation made by LIC therefore no note is taken of the difference in the amount of actuarial liability and the balance in the fund with LIC. The same is subject to approval of Scheme by Commissioner of Income Tax.

The Company had opted for Group Superannuation Scheme of LIC of India for its Directors and the contribution paid to LIC of India was charged to Profit & Loss Account. The same was also subject to approval of Scheme by Commissioner of Income Tax. During the year the company has made a payment of Rs. 6,37,200/-.


Mar 31, 2010

(a) FIXED ASSETS:

All Tangible Fixed Assets are stated at their original cost less depreciation (Net of Modvat VAT and Service Tax). Preoperation expenses are capitalised. Company has identified that there is no material impairment of assets and as such no provision is made as per AS-28 issued by Institute of Chartered Accountants of India.

(b) INVESTMENT: Investments are carried at cost.

(c) Foreign Currency Loans availed for acquiring fixed assets had been translated at the exchange rate prevailing at the end of the year. The exchange difference on conversion was adjusted to cost of fixed assets.

(d) DEPRECIATION:

Depreciation has been provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 as amended on prorata basis.

(e) INVENTORIES:

The Inventories are valued as under :

(i) Stores & Spares (at cost on FIFO basis): Valuation on should be with Freight (Coal & Maize) It includes Coal, Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and Packing Materials and other stores items.

(ii) Raw Material-Maize (At cost on FIFO Basis).

(iii) Stock in Process (At cost)

(a) Quantity and value of Stock in Process of Raw Starch is not ascertainable on regular basis due to constant change in its contents, which is complex technical in nature, therefore, at the year end on actual & technical basis quantity and value was ascertained.

(b) Quantity of stock in process of Dextrose Plant are ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technical valuation.

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH.

(v) By-products and DAH & DMH (At realisable value).

(vi) The Stock on Consignment lying with other parties duly acknowledged by the custodians are included in the inventories at Market value including Excise Duty paid thereon. The Closing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any.

(vii) The sale on Consignment basis are treated as Sales on receipt of Sales Advice from the consignee.

(viii) The Consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & other expenses related to consignment are included in consignment sales separately amounting to Rs.33,67,782./-(36,55,018/-).

(f) 20% of the preoperative expenses incurred till the commencement of production had been treated as Deferred Revenue Expenditure and the same are written off equally over a period of 5 years from the year of commencement of production at Dextrose plant.

(g) The Preliminary and Public Issue Expenses are written off equally over a period of 10 years from the year of commencement of production at Dextrose Plant. The expenses not related to public issue had been transferred to Deferred Revenue Expenditure and had been written off equally over a period of 5 years from the year of commencement of production at Dextrose Plant.

(h) Cenvat Credit:

(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit Receivable by reducing the cost of fixed assets and balance il any is included in other advances recoverabte in cash or in kind or for value to be received.

(ii) For claim of CENVAT Credit on Capital Goods and inputs the classification between Capital Goods and inputs are made on the basis of Excise records.

(iii) Modvat Credit on Purchase of raw & other material is reduced from the cost of such materials purchased at the time of purchase itself in excise records and is accounted for at year end in the accounts.

(iv) Credit for Service Tax on Services are availed by reducing the Cost of respective services.

(i) Interdivisional transfer is not treated as Sales and Raw Material Consumption in view of announcement made by the Institute of Chartered Accountants of India on Accounting Standard (AS) 9. It is not affecting the Profit/loss of the company.

(j) No provision has been made towards liability for leave encashment benefits. The company is in process to implement it in terms of Revised AS-15 issued by the Institute of Chartered Accountants of India. The amount is not ascertainable as on Balance Sheet date and further the company is in process of implementation. During the year leave encashment of Rs. 25,29,000/- has been paid to Directors for encashment of leave up to 31.03.2010

(k) The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme from Life Insurance Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The payment is made as per computation made by LIC therefore no note was taken of the difference in the amount of actuarial liability and the balance in the fund with LIC. The same is subject to approval of Scheme by Commissioner of Income Tax during the year. During the year no computation was received from LIC and therefore provisional payments were made to LIC and it is subject to ascertainment of actuarial liability.

The Company had opted for Group Supreannuation Scheme of LIC of India for its Directors and the contribution paid to LIC of India was charged to Profit & Loss Account. The same was also subject to approval of Scheme by Commissioner of Income Tax. During the year the company has made a payment of Rs. 4,99,050/-.

 
Subscribe now to get personal finance updates in your inbox!