Accounting Policies of Bannari Amman Sugars Ltd. Company
Mar 31, 2018
a) Basis of Preparation
i) Compliance with IND AS
The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards ( hereinafter referred to as the âInd ASâ) notified under Section 133 of the Companies Act 2013 (the Act) read with the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.
The accounting policies are applied consistently to all the periods presented in the financial statements.
ii) Historical Cost Convention
The financial statements have been prepared on a historical cost basis, except for certain financial instruments and Defined Benefit plans - plan assets measured at fair value at the end of the each reporting period.
Historical cost is generally based on the fair value of consideration given in exchange of goods and services.
Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, company takes into account when pricing the asset or liability if market participants would take characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statement is determined on such a basis except for measurements that have similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 (Inventories) or value in use in Ind AS 36 (Impairment of Assets).
iii) Current and Non - Current Classification
All assets and liabilities have been classified as current or non current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act 2013.
Deferred Tax assets and liabilities are classified as Non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The company has identified Twelve months as its operating cycle
iv) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
b) Use of Estimates and Judgements
The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.
The said estimates are based on the facts and events, that existed as at the reporting date, or that occured after the date but provide additional evidence about conditions existing as at the reporting date.
c) Property Plant and Equipment
Property, plant and equipment that qualifies for recognition as an asset is measured at cost net of tax / duty credit availed less accumulated depreciation and accumulated impairment losses, if any. Freehold land is not depreciated.
Cost includes related taxes, duties, freight, insurance etc., attributable to acquisition and installation of assets and borrowing cost incurred up to the date of commencing operations, but excludes duties and taxes that are recoverable from taxing authorities.
Subsequent cost are included in the assetâs carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefit associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a seperate asset is derecognised when replaced. Cost in the nature of repairs and maintenance are recognised in the Statement of Profit and Loss during the reporting period in which they are incurred.
Assets which are not ready for their intended use and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.
Depreciation
Straight line method has been adopted for providing depreciation on fixed assets other than for Co-Generation Division and Wind Mill Division.
For the assets of Co-Generation division and Wind Mill Division, depreciation has been provided under written down value method.
The assets are depreciated over the useful life as prescribed in Schedule II to the Companies Act, 2013.Leasehold land is amortised over the period of lease.
The residual values are not more than 5% of the original cost of the asset. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of changes in estimate accounted for on a prospective basis.
Derecognition
The carrying amount of an item of property, plant and equipment shall be derecognised on disposal or when no future economic benefits are expected from its use or disposal.
The gain or loss arising from the derecognition of an item of property, plant and equipment shall be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. The same is recognised in the statement of profit and loss.
d) Impairment of Non financial Assets
Non financial assets are tested for impairment at the end of each reporting period as to whether events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assetsâ carrying amount exceeds its recoverable amount. The recoverable amount is higher of an assetsâ fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are seperately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets(cash generating units). Non financial assets other than goodwill that suffered an impairment in prior periods are reviewed for possible reversal of the impairment at the end of the each reporting period.
e) Derivative financial Instruments
Derivative financial instruments such as forward contracts, to hedge its foreign currency risks are initially recognised at fair value on the date, a derivative contract is entered into. The same is subsequently remeasured at their fair value with changes in fair value recognised in the statement of profit and loss in the period when they arise.
f) Financial Instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisons of the instruments.
Financial Assets
Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial assets (other than financial assets at fair value through profit or loss) are added to or deducted from the fair value of the financial assets, on initial recognition.
When the fair value of a financial assets at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognised as a gain or loss at initial recognition if the fair value is determined through a quoted market price in an active market for an identical (i.e. level 1 input) or through a valuation technique that uses data from observable markets (i.e. level 2 input).
In case the fair value is not determined using a level 1 or 2 input as mentioned above, the difference between the fair value and the transaction price is deferred appropriately and recognised as a gain or loss only to the extent that such gain or loss arises due to a change in factor that market participants take into account when pricing the financial asset.
Investment in Equity instruments at Fair Value Through Other Comprehensive Income (FVTOCI)
Initial Recognition
The Company, through an irrevocable election (on an instrument by instrument basis), has measured investments in equity instruments at FVTOCI. These equity instruments are neither
held for trading nor are contingent consideration recognised under a business combination. These elected investments are initially measured at fair value plus transaction costs.
Subsequent measurement
Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income.
Dividend
Dividend on investments in equity instruments are recognised in profit or loss unless the dividend does not represent a recovery of part of cost of the investment. Dividend is recognised only when the companyâs right to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of dividend can be measured reliably. The Company has recognised dividend in Statement of profit and loss in the âOther Incomeâ line item.
Derecognition
A financial asset is derecognised when the contractual rights to the cash flows from the financial asset expires or the Company transfers the financial asset and substantially all the risks and rewards of ownership of the asset. If the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, but retains control of the financial asset, the Company continues to recognise the transferred asset to the extent of its continuing involvement. The extent of the Companyâs continuing involvement in the financial asset is the extent to which it is exposed to changes in the value of the transferred asset. In such cases, the Company also recognises an associated liability. The financial asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
On derecognition of such financial assets, the cumulative gain / loss previously recognised in Other Comprehensive Income is not reclassified from the equity to the Statement of Profit and Loss. However, the company may transfer such cumulative gain / loss into the retained earnings within equity.
Impairment of Financial Asset
The Company applies expected credit loss model for recognising impairment loss on financial assets measured at fair value through other comprehensive income (FVTOCI), trade receivables, lease receivables and other financial asset measured at amortised cost.
The Company follows a simplified approach wherein an amount equal to lifetime expected credit losses is measured and recognised as loss allowance in the case of trade receivables and lease receivables.
In case of financial assets measured at fair value through other comprehensive income or at amortised cost, the Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk has not increased significantly, an amount equal to 12-month expected credit losses is measured as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime expected credit losses is measured and recognised as loss allowance.
Financial Liabilities
Initial Recognition
Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the issue of financial liabilities (other than financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial liabilities, on initial recognition.
When the fair value of a financial liabilities at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognised as a gain or loss at initial recognition if the fair value is determined through a quoted market price in an active market for an identical (i.e. level 1 input) or through a valuation technique that uses data from observable markets (i.e. level 2 input).
In case the fair value is not determined using a level 1 or 2 input as mentioned above, the difference between the fair value and the transaction price is deferred appropriately and recognised as a gain or loss only to the extent that such gain or loss arises due to a change in factor that market participants take into account when pricing the financial liabilities.
Subsequent measurement
Financial Liabilities are subsequently carried at amortised cost using the effective interest method, which is subsequently measured at fair value through profit or loss. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value to the short maturity of these instruments.
Derecognition
A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing financial liabilty is substantially modified, such an exchange or modification is treated as the extinguishment of the original liability and the recognition of a new financial liability. The difference between the carrying amount of a financial liability extinguished and the consideration paid is recognised in the Statement of Profit and Loss.
g) Valuation of Inventories :
i) The cost of the finished goods and process stock comprises all cost of purchase, cost of conversion, duties and taxes (other than those subsequently recovered from the tax authorities) and other costs incurred in bringing the inventories to their present location and condition.
ii) Due allowance is estimated and made for defective and obsolete items wherever necessary.
h) Fair value measurement
The Company measures financial instruments, such as, investments at fair value at each balance sheet date. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy that categorises into three levels, described as follows, the inputs to valuation techniques used to measure value.
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilties
Level 2: inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly
Level 3: inputs that are unobservable for the asset or liability.
For Assets and liabilities that are recognised in the financial statement on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing the categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
i) Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances.
Sale of Goods :
Revenue from sale of goods is recognised when all the following conditions are satisfied:
a) the company has transferred the significant risks and rewards of ownership of the goods to the buyer,
b) the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold.
c) the amount of revenue can be reliably measured;
d) it is probable that the economic benefits associated with the transaction will flow to the Company
e) the cost incurred or to be incurred in respect of the transaction can be measured reliably.
Sale of Services
The Company recognises its revenue from sale of services based on the recognition criteria that the outcome of a transaction involving the rendering of services can be estimated reliably.
Stage of completion of transactions is measured by determining the services performed till balance sheet date as a percentage of total services to be performed as per the contract.
Export incentives under various schemes are accounted in the year of export.
Exchange of Goods and Services
When goods or services are exchanged for goods or services which are of a similar nature and value, the exchange is not regarded as a transaction which generates revenue. When goods are sold or services are rendered in exchange for dissimilar goods or services, the exchange is regarded as a transaction which generates revenue. The revenue is measured at the fair value of the goods or services received, adjusted by the amount of any cash or cash equivalents transferred. When the fair value of the goods or services received cannot be measured reliably, the revenue is measured at the fair value of the goods or services given up, adjusted by the amount of any cash or cash equivalents transferred.
Dividend and Interest Income
Dividend income from investments is recognised when the shareholderâs right to receive payment has been established (provided that it is probable that the economic benefits will flow to the entity and the amount of income can be measured reliably). Dividend income are shown in the income statement are in accordance with Ind AS 109.
Interest income from financial asset is recognised when it is probable that the economic benefits will flow to the entity and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial assetsâ net carrying amount on initial recognition
j) Foreign Currency Transactions
The financial statements are presented in Indian Rupee which is companyâs functional and presentation currency. Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transaction settled during the year are recognised in the statement of profit and loss. Foreign currency monetary items as at the balance sheet date are translated using the closing rate. The gain or loss arising out of these translations are recognized in the statement of profit and loss.
k) Provision, Contingent liabilities & Contingent assets
Provision is recognised only when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources embodying economic benefits to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Contingent liabilities are disclosed when there is a possible obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of obligation cannot be measured reliably.
Contingent assets are not recognised, however the same is disclosed in the financial statements, when an inflow of economic benefit is probable.
l) Income Tax
Tax expense (tax income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deffered tax.
Current Tax
Current tax is the amount of income tax payable in respect of taxable profit for the year. The taxable profit differs from profit before tax as reported in Statement of profit and Loss because of temporary differences. The Companyâs current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period for the amount expected to be paid to the taxation authorities.
Minimum Alternate Tax (MAT) credit is recognised as deferred tax asset only when and to the extent there is convincing evidence that the sufficient taxable profit will be available against which the MAT credit can be utilised.
Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statement and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised on all temporary differences. Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of an asset or liability in a transaction (other than a business combination) affects neither accounting profit nor taxable profit (tax loss).
Deferred tax assets are recognised for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised.
Deffered tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deffered tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax is recognised in the statement of profit and loss except to the extent it relates to items recognised in other comprehensive income or directly in equity.
m) Government grants
Government grants are recognized only when there is reasonable assurance that the Company will comply with the conditions attached to the grants and the grants will be received. Government grant in the nature of revenue has been recognized on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate. The company had accounted for Export benefits in the year of exports based on eligibility and when there is no uncertainty in receiving the same.
n) Employee Benefits
Short Term Employee Benefits
All employee benefits payable within twelve months of rendering service are classified as short term employee benefits and are recognised in the period in which the employee renders the related service. The Company recognises the undiscounted amount of short term employee benefits expected to be paid as a liability after deducting the amount already paid.
Other long-term employee benefit obligations
The liabilities for earned leave and sick leave that are not expected to be settled wholly within 12 months are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted at a predetermined rate of interest based on yields on Government Bonds that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in the Statement of Profit and Loss.
Post-employment obligations
The Company operates the following postemployment schemes:
a) defined benefit plans such as gratuity; and
b) defined contribution plans such as provident fund.
Gratuity obligations
The Company operates a defined benefit plan for employees. The Company contributes to a seperate entity (a fund), towards meeting the gratuity obligation. The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows at a predetermined rate of interest based on the market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Leave Salary
The company measures the expected cost of accumulating the paid absences as the addditional amount that the company expects to pay as a result of unused entitlement that has accumulated at the end of the reporting period. Actuarial gain and losses arising from changes in actuarial assumptions are recognised in the other comprehensive income.
Defined Contribution Plans
Defined Contribution Plans are Provident Fund, Employee State Insurance scheme and Government administered Pension Fund scheme for all applicable employees.
The company recognises contribution payable to a defined contribution plan as expenses in the statement of profit and loss when the employee renders services to the company during the reporting period. If the contribution payable for services received from employee before the reporting date exceeds the contribution already paid, the deficit payable is recognised as a liability after deducting the contribution already paid.
o) Operating Segments
Operating segments are identified in accordance with the criteria set out in paragraphs 5 to 10 of Ind AS 108 viz. a component of an entity that engages in business activities from which the company earns revenues and incur expenses and the operating results are regularly reviewed by the entityâs Cheif Operating Decision Maker to make decisions about resources to be allocated to the segment and assess the performance for which discrete financial information is available.
The operating segments are reported after taken into consideration of Aggregation criteria and Quantitative threshold as mentioned in Para 12 and 13 of Ind AS 108.
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the company. The CODM is responsible for allocating the resources and assessing the performance of the operating segments of the company.
p) Leases
The Companyâs significant leasing arrangements are operating leases and cancelable in nature.
Company as Lessor
The lease rental income under agreements are recognised in the statement of profit and loss as per the terms of the lease. The rental income from operating lease is generally recognised on a straight line basis over the term of relevant lease. When the rentals are structured solely to increase in line with expected general inflation to compensate for the Companyâs expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Contingent rental income arising under operating leases are recognised as income in the period in which they accrue.
Company as Lessee
The lease rental under agreements are recognised in the statement of profit and loss as per the terms of the lease. The rental expense under operating lease is generally recognised on a straight line basis over the term of relevant lease. When the rentals are structured solely to increase in line with expected general inflation to compensate for the lessorâs expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as expense in the period in which they are incurred.
q) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit or loss is adjusted for the effects of transactions of non cash nature, any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available information.
For the purpose of presentation of cash flow statement, cash and cash equivalents includes cash on hand, cheques on hand, bank balances, demand deposit with banks where the original maturity is three months or less and other short term highly liquid investments.
r) Borrowings
Borrowings are initially recognised at net of transaction costs incurred and measured at amortised cost.
s) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of those assets. All other borrowing costs are recognised as an expense in the statement of profit and loss in the period in which they are incurred.
t) Recent accounting pronouncements
In March 2018, the Ministry of Corporate Affairs has issued the Companies (Indian Accounting Standards) Amendment Rules, 2018, notifying Ind AS 115, âRevenue from Contract with Customersâ, Appendix B to Ind AS 21, Foreign currency transactions and advance considerations and amendments to certain other standards. This amendment is applicable from 1st April, 2018. The company is evaluating the requirement of the amendment and the impact on the financial statements.
Ind AS 115
As per the amended rules, Ind AS 115 supersedes Ind AS 11, âConstruction Contractsâ and Ind AS 18, âRevenueâ. Ind AS 115 introduces a new framework of five step model for the analysis of revenue transactions. The model specifies that revenue should be recognised when (or as) an entity transfers control of goods or services to a customer at the amount to which the entity expects to be entitled. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainity of revenues and cash flows arising from the entityâs contracts with customer.
The standard can be applied either retrospectively to each prior reporting period presented or can be applied retrospectively with recognition of cumulative effect of contracts that are not completed contracts at the date of initial application of the standard.
The effect of this amendment on the financial statement of the company is being evaluated.
Mar 31, 2017
a) Basis of Preparation
i) Complaince with IND AS
The financial statements of the Company have been prepared in accordance with the Indian Acounting Standards (hereinafter referred to as the âInd ASâ) notified under Section 133 of the Companies Act 2013 (the Act) read with the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.
The financial Statements upto year ended 31 March 2016 were prepared in accordance with the accounting standards notified under Companies(Accounting Standards)Rules, 2006 (as amended) and other relevant provisions of the Act.
ii) Historical Cost Convention
The financial Statements have been prepared on a historical costs basis, except for certain financial instruments that are measured at fair values at the end of the each reporting period.
Historical cost is generally based on the fair value of consideration given in exchange of goods and services.
Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, company takes into account when pricing the asset or liability if market participants would take characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statement is determined on such a basis except for measurements that have similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 (Inventories) or value in use in Ind AS 36 (Impairment of Assets).
Defined Benefit plans - plan assets measured at fair value
iii) Current and Non - Current Classification
All assets and liabilities have been classified as current or non current as per the Companyâs normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Companies Act 2013.
iv) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
b) Use of Estimates and Judgements
The estimates and judgements used in the preparation of the financial statements are continuosly evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.
The said estimates are based on the facts and events, that existed as at the reporting date, or that occured after the date but provide additional evidence about conditions existing as at the reporting date.
c) Property Plant and Equipment
Land and Building held for use in the production or supply of goods or services, or for administrative purposes, are stated in the Balance Sheet at cost less accumulated depreciation and accumulated impairment losses. Freehold land is not depreciated.
Plant and Equipment, Fixtures are stated at Cost less accumulated depreciation and accumulated impairment losses (if any)
Historical Cost includes related taxes, duties, freight, insurance etc., attributable to acquisition and installation of assets and borrowing cost incurred up to the date of commencing operations, but excludes duties and taxes that are recoverable from taxing authorities.
Subsequent expenditure relating to fixed assets is capitalised only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a seperate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of profit and Loss during the reporting period in which they are incurred.
Assets which are not ready for their intended use and other capital work in progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.
Depreciation
Straight line method has been adopted for providing depreciation on fixed assets other than for Co-Generation Division and Wind Mill Division.
For the assets of Co-Generation division and Wind Mill Division, depreciation has been provided under written down value method.
The assets are depreciated over the useful life as prescribed in Schedule II to the Companies Act, 2013.
The residual values are not more than 5% of the original cost of the asset. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of changes in estimate accounted for on a prospective basis.
Gains and Losses on disposal are determined by comparing proceeds with carrying amount and these are included in the Statement of profit and loss.
Impairment of Non financial Assets
Non financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assetsâ carrying amount exceeds its recoverable amount. The recoverable amount is higher of an assetsâ fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are seperately identifiable cash flows which are largely independent of the cash inflows from other assets or group of assets(cash generating units). Non financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of the each reporting period.
d) Financial Instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, on initial recognition.
Derivative financial Instruments
Derivative financial instruments such as forward contracts to hedge its foreign currency risks are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value with changes in fair value recognised in the statement of profit and loss in the period when they arise.
Investment in Equity instruments at FVTOCI
On initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent changes in the fair value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the equity instruments is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the âReserve for Equity instruments through other comprehensive incomeâ. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.
The Company has invested in four entities which are not held for trading. The Company has made an irrevocable election of FVTOCI option for all of its equity investments. Dividend on these investments in equity instruments are recognised in profit or loss when the companyâs right to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably. Dividend recognised in profit or loss are included in the âOther Incomeâ line item.
e) Valuation of Inventory :
i) Finished Goods Sugar
Granite Blocks
Polished Granite slabs and tiles
Molasses
Bagasse
Industrial Alcohol
Fusel Oil
Bio-compost
At weighted average cost or Net Realisable value whichever is lower
Sawn Granite slabs and process stock
- At cost or net realisable value whichever is lower
Raw material, consumables, stores & spares and others
At weighted average cost or Net Realisable value whichever is lower
ii) The cost for the finished goods and process stock is inclusive of cost of purchase, cost of conversion, Excise duty, cess if any and other costs incurred in bringing the inventories to their present location and condition.
iii) Due allowance is estimated and made for defective and obsolete items wherever necessary.
f) Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances.
Sale of Goods:
Revenue from sale of goods is recognised when goods are delivered and title have passed and on satisfaction that the significant risk and rewards of ownership are transferred to the buyer, the entity retains neither continuing managerial involvement to the degree usually asociated with ownership nor effective control over the goods sold.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that economic benefits associated with the transaction will flow to the Company and the cost incurred or to be incurred in respect of the transaction can be measured reliably.
Sale of Services
The Company recognises its revenue from sale of services based on the recognition criteria that the outcome of a transaction involving the rendering of services can be estimated reliably.
Export incentives under various schemes are accounted in the year of export.
Dividend and Interest Income
Dividend income from investments is recognised when the shareholderâs right to receive payment has been established (provided that it is probable that the economic benefits will flow to the entity and the amount of income can be measured reliably). Dividend income are shown in the income statement are in accordance with Ind AS 109.
Interest income from financial asset is recognised when it is probable that the economic benefits will flow to the entity and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial assets net carrying amount on initial recognition
g) Foreign Currency Transactions
The financial statements are presented in Indian Rupee which is companyâs functional and presentation currency. Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction. Foreign currency monetary items as at the balance sheet date are retranslated using the closing rate or at the rate that is likely to be realised from / required to disburse. The gain or loss due to increase or decrease in value of reporting currency due to fluctuations in rates of exchange are recognized in the statement of profit and loss.
h) Provision, Contingent liabilities & Contingent assets
Provision is recognised only when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses. Contingent liabilities are disclosed in respect of possible obligations that arise from past event but their existence will be confirmed by occurence or non occurence of one or more future events not wholly within the control of the company. Contingent assets are neither recognised nor disclosed in the financial statements.
i) Taxation
Tax expense (tax income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.
Current Tax
The tax currently payable is based on taxable profit for the year. The taxable profit is different from profit before tax as reported in Statement of profit or Loss because of temporary differences. The Companyâs current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which give future economic benefit in the form of adjustment to future income tax liability is considered as an asset to the extent there is convincing evidence that the company will pay normal income tax.
Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statement and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised on all temporary differences. Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of an asset or liability in a transaction (other than a business combination) affects neither accounting profit nor taxable profit (tax loss).
Deferred tax assets are recognised for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax is recognised in the statement of profit and loss except to the extent it relates to items recognised in other comprehensive income or directly in equity.
j) Government grants
Government grants are recognized based on the reasonable assurance that the Company will comply with the condition attached to the grants and the grants will be received. Government grant in the nature of revenue has been recognized on a systematic basis in the statment of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate. The company had accounted for Export benefits in the year of exports based on eligibility and when there is no uncertainty in receiving the same.
k) Employee Benefits
Short Term Employee Benefits
Liabilities of wages and salaries, including nonmonetary benefits for the period in which the employee render the related service are recognised in respect of employees services up to the end of the reporting period are measured at the undiscounted amount of benefit expected to be paid in exchange of that service.
Other long-term employee benefit obligations
The liabilities for earned leave and sick leave that are not expected to be settled wholly within 12 months are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the Government Securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in the Statement of Profit and Loss.
Post-employment obligations
The Company operates the following postemployment schemes:
a) defined benefit plans such as gratuity; and
b) defined contribution plans such as provident fund.
Gratuity obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Defined Contribution Plans
Defined Contribution Plans such as Provident Fund etc., are charged to the Statement of Profit and Loss as incurred. Further for certain employees, the monthly contribution for Provident Fund is made to a Trust administered by the Company. The i nterest payable by the T rust is notified by the Government. The Company has an obligation to make good the shortfall, if any.
l) Operating Segments
Operating segments are identified in accordance with criteria set out for an operating segment as a component of an entity in Ind AS 108. The operating segments engages in business activities from which the company earns revenues and incur expenses and the operating results are regularly reviewed by the entityâs cheif operating decision maker to make decisions about resources to be allocated to the segment and asses the performance for which discrete financial information is available.
The operating segments are reported after taken into consideration of Aggregation criteria and Quantitative threshold as mentioned in Para 12 and 13 of Ind AS 108.
m) Leases
The Companyâs significant leasing arrangements are operating leases and cancelable in nature.
Company as Lessor
The rental income from operating lease is generally recognised on a straight line basis over the term of relevant lease. When the rentals are structured solely to increase in line with expected general inflation to compensate for the Companyâs inflationary cost increases, such increases are recognised in the year in which such benefits accrue.
Company as Lessee
The rental expense from operating lease is generally recognised on a straight line basis over the term of relevant lease. When the rentals are structured solely to increase in line with expected general inflation to compensate for the Lessorâs inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as expense in the period in which they are incurred.
n) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit or loss is adjusted for the effects of transactions of non cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows. Cash flows from major classes of gross cash receipts and gross cash payments arising from investing and financing activities are reported separately.
For the purpose of presentation of cash flows, cash and cash equivalents include cash on hand, bank overdrafts, deposits held at call, other short term highly liquid investments with original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.
o) Borrowings
Borrowings are initially recognised at net of transaction costs incurred and measured at amortised cost.
p) Borrowing Cost
Borrowing cost directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised as an expense in the statement of profit or loss in the period in which they are incurred.
q) First time adoption of Indian Accounting Standards
Overall principle
The Company has prepared the opening Balance Sheet as per Ind AS as of April 1,2015 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets and liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying ind AS in measurement of recognised assets and liabilities. However, this principle is subject to certain exception and certain optional exemptions availed by the Company detailed below :
Non-Ind AS Comparative Information
The Company had prepared the opening Ind AS Balance Sheet in accordance with Ind AS except to the requirement on compliance with recognition and measurements as per Ind ASâs with respect to Investment in equity instruments wherein it has been complied with previous Indian
GAAP Had the investments been restated as per Ind AS, the amount of investments and the closing balance of reserves as on the transition
Derecognition of financial assets and financial liabilities
The Company has adopted derecognition requirements in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS
Government Loans
The Company has adopted the previous GAAP carrying amount of the loan at the date of transition to Ind AS as the carrying amount of the loan in the opening Ind AS Balance Sheet. Further the Company will apply Ind AS 109 to the measurement of such loans after the date of transition to Ind ASs.
Deemed Cost for Property, Plant and Equipment
The Company has elected to continue with the date might differ from those reflected in the Opening Balance Sheet.
Carrying value of all of its property plant and equipment recognised as of April 1, 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.
Leasing
The Company classifies each element of lease of land and building as finance or an operating lease at the date of transition to Ind AS on the basis of the facts and circumstances existing as at that date.
Designation of Previously recognised financial instruments
The Company has designated all of its equity instruments as at fair value through other comprehensive income based on the facts and circumstances that existed as of transition date.
Mar 31, 2016
NOTE 1 : Significant accounting policies
1.1 The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014 The financial statements have been prepared on going concern basis under the historical cost convention The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year
1.2 Fixed Assets : The Fixed Assets are carried at Cost less accumulated depreciation and impairment losses, if any. Cost includes related taxes duties freight insurance etc. attributable to acquisition and installation of assets and borrowing cost incurred up to the date of commencing operations, but excludes duties and taxes that are recoverable from taxing authorities Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance. Assets which are not ready for their intended use and other capital work in progress are carried at cost comprising direct cost related incidental expenses and attributable interest
1.3 Long Term Investments: Investments are accounted at cost The diminution in the market value of long term investments, is recognized when diminution is considered permanent
1.4 Depreciation : Straight line method has been adopted for providing depreciation on fixed assets over the useful life of the assets prescribed under Schedule II to the Companies Act 2013 other than for Co-Generation Division and Wind Mill Division For the assets of Co-Generation division and Wind Mill Division depreciation has been provided under written down value method For additions and deletions depreciation is provided from/to the date of addition/deletion on pro-rata basis Depreciation on asset additions costing Rs 5000/- or less is provided at the rate of 100% in the year of capitalization
1.5 Valuation of Inventory :
i) Finished Goods
Sugar
Granite Blocks
Polished Granite slabs and tiles
Molasses At weighted average cost or Net
Biogases Realizable value whichever is lower
Industrial Alcohol Fuel Oil Bio-compost
Sawn Granite slabs and process stock - At cost or net realizable value whichever is lower
At weighted average cost or Net
Raw material consumables stores & spares and others D i- u i l- l ⢠i
r Realizable value whichever is lower
ii) The cost for the finished goods and process stock is inclusive of cost of purchase cost of conversion Excise duty cess if any and other costs incurred in bringing the inventories to their present location and condition
1.6 Revenue Recognition:
All Income and Expenses are accounted on accrual basis in line with Accounting Standard 9 (AS-9) The turnover is accounted without considering inter-division transfers for own consumption
1.7 Foreign Currency transactions :
Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction Foreign currency monetary items as at the balance sheet date are reported using the closing rate or at the rate that is likely to be realized from / required to be disbursed The gain or loss due to increase or decrease in value of reporting currency due to fluctuations in rates of exchange are recognized in the statement of profit and loss
1.8 Provision Contingent liabilities & Contingent assets :
Provision is recognized only when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are shown by way of notes Contingent assets are neither recognized nor disclosed in the financial statements
1.9 Impairment of assets:
Impairment of assets are assessed as at the close of each financial year and appropriate provision if any are recognized and given effect to the Accounts
1.10 Taxation:
Current tax is determined at the current rates of Income Tax on taxable income and tax credits are computed in accordance with the provisions of the Income Tax Act 1961 Minimum Alternate Tax (MAT) paid in accordance with the tax laws which give future economic benefit in the form of adjustment to future income tax liability is considered as an asset if there is convincing evidence that the company will pay normal income tax Accordingly MAT is recognized as an asset in the balance sheet when it is probable that future economic benefit associated with it will flow to the Company
1. 11 Deferred Tax:
Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws that have been substantially enacted as at the balance sheet date. The deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that these would be realized in future
1.12 Government grants:
Government grants are recognized based on the reasonable assurance that the Company will comply with the condition attached to the grants and the grants will be received Government grant in the nature of revenue has been recognized on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same
1.13 Segment reporting:
The segment reporting is in line with the accounting policies of the Company Inter segment transactions have been accounted for based on the price which has been arrived at considering cost and market price Revenue and expenses that are directly identifiable with or allocable to segments are considered for determining the segment results Segment assets and liabilities include those directly identifiable with the respective segments Business segments are identified on the basis of the nature of products the risk/return profile of individual business the organizational structure and the internal reporting system of the Company
1.14 Leases:
The Company''s significant leasing arrangements are operating leases and cancelable in nature The lease rentals paid/received under such agreements are accounted in the statement of profit and loss
1.15 Employee benefits :
Provident Fund, Employees State Insurance and Gratuity are defined contribution schemes and contributions are charged to statement of profit and loss of the year in which the contributions to the respective funds are due The Company has opted for LIC group gratuity scheme which is a defined benefit scheme For calculating gratuity liability the premium ascertained by LIC has been taken into account Long term accumulated absences are provided based on the actuarial valuation
1.16 Excise duty :
The Excise Duty on sale of finished goods is deducted from turnover to arrive at net sales as shown in the statement of profit and loss The Excise Duty appearing in the statement of profit and loss as an expenditure represents excise duty provision for difference between opening and closing stock of finished goods
1.17 Cash Flow Statement :
Cash flows are reported using the indirect method whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non cash nature and any difference are accruals of past or future cash receipts or payments The cash flows from operating investing and financing activities of the company are segregated based on the available information
1. 18 Borrowing Cost : Borrowing cost which are directly attributable to the construction of qualifying assets are capitalized as a part of the cost of the asset
1.19 Amalgamation of Madras Sugars Limited with the Company
Pursuant to the scheme of amalgamation which has been approved by the Hon''ble High Court of Judicature at Madras by its Order dated 15.11.2016 and filed with the Registrar of Companies Coimbatore on 23.11.2016 the entire undertaking and all the properties assets liabilities obligations etc. of Madras Sugars Limited have been transferred to and vested in the Company with effect from the appointed date viz. 1.1.2016 The scheme has accordingly been given effect to
a) Madras Sugars Limited carried on the business of manufacture of sugar and co-generation of power
b) The above amalgamation is effective from 1.1.2016 as sanctioned by the High Court of Madras vide its order dated 15.11.2016
c) The scheme has been accounted in the nature of merger under the method of pooling of interest as prescribed by the Accounting Standard -14 (AS-14) The assets and liabilities of erstwhile Madras Sugars Limited as on 31.12.2015 have been taken over at their book value
d) Pursuant to the scheme of amalgamation 11,00,000 Equity shares of Rs 10/- each fully paid would be allotted to the equity shareholders of Madras Sugars Limited
e) The difference between the share capital issued under the scheme of amalgamation and the share capital of Madras Sugar Limited and debit balance of Statement of Profit and Loss of Madras Sugars Limited have been adjusted in the General Reserve of the Company
c. Terms / rights attached to equity shares
The company has issued only one class of equity shares having face value of Rs 10/- each. One equity share carries one vote. The members are entitled to vote in accordance with their shareholding. The Company declares and pays dividend in Indian rupees. The dividend recommended by the board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
* As per the scheme of amalgamation the Company has to allot 11,00,000 equity shares to SVB Holdings Private Limited which holds the entire share capital of Madras Sugars Limited On allotment the percentage of shareholding of SVB Holdings Private Limited will be increased from 34.51% to 40.26%
4.1 Rupee term loan of Rs 8550 Lakhs (Rs 9000 Lakhs) from HDFC Bank Ltd is secured by pari passu first charge on the movable plant and machinery of the Sugar and Co-generation Plant at Sugar Unit III
The loan carries Interest at the rate of Bank''s Base rate plus 1% and repayable in 20 equal quarterly installments starting from January 2016
The loan amount repayable within twelve months is Rs 1800 lakhs (Rs 450 Lakhs) is grouped under Other Current Liabilities
4.2 Rupee term loan of Rs 6750 Lakhs (Rs 8550 Lakhs) from State Bank of India is secured by pari passu first charge on the movable plant and machinery of the Sugar and Co-generation Plant at Sugar Unit III
The loan carries Interest at the rate of Bank''s Base rate plus 1% and repayable in 20 equal quarterly installments starting from March 2015
The loan amount repayable within twelve months is Rs 1800 lakhs (Rs 1800 Lakhs) is grouped under Other Current Liabilities
4.3 Rupee term loan of Rs. 1900 Lakhs (Rs 2000 Lakhs) from The Federal Bank Ltd is secured by pari passu first charge on the movable plant and machinery of the Sugar and Co-generation Plant at Sugar Unit III
The loan carries Interest at the rate of Bank''s Base rate and repayable in 20 equal quarterly installments starting from January 2016
The loan amount repayable within twelve months is Rs 400 lakhs (Rs 100 Lakhs) is grouped under Other Current Liabilities
4.4 Rupee term loan of Rs 2170 Lakhs from Central Bank of India is secured by pari passu first charge on the block assets of the Sugar and Co-generation Plant at Sugar Unit V
The loan carries Interest at the rate of Bank''s Base rate plus 1.50% and repayable in 20 equal quarterly installments starting from June 2012
The loan amount repayable within twelve months is Rs 2170 lakhs is grouped under Other Current Liabilities
4.5 Rupee term loan of Rs. 1250 Lakhs from Axis Bank Ltd is secured by pari passu first charge on the block assets of the Sugar and Co-generation Plant at Sugar Unit V
The loan carries Interest at the rate of Bank''s Base rate plus 2.25% and repayable in 20 equal quarterly installments starting from June 2012
The loan amount repayable within twelve months is Rs 1250 lakhs is grouped under Other Current Liabilities
4.6 Corporate loan of Rs. 7500 Lakhs (Nil) from State Bank of India is secured by pari passu first charge on the fixed assets (excluding vehicles) of the Sugar Unit II
The loan carries Interest at the rate of Bank''s Base rate plus 0.75% and repayable in 16 equal quarterly installments starting from December 2017
4.7 Term loan of Rs 5000 Lakhs (Nil) from HDFC Bank Ltd is secured by pari passu first charge on the fixed assets (excluding vehicles) of the Sugar Unit II
The loan carries Interest at the rate of Bank''s Base rate plus 0.75% and repayable in 16 equal quarterly installments with moratorium of 12 months from the date of first a ailment
4.8 Term loan of Rs 10000 Lakhs (Nil) from ICICI Bank Ltd is secured by pari passu first charge on the fixed assets (excluding vehicles) of the Sugar Complex at Sugar Unit II
The loan carries Interest at the rate of Bank''s Base rate plus 0.75% and repayable in 16 equal quarterly installments with moratorium of 24 months from the date of first a ailment
4.9 Term loan of Rs 3500 Lakhs from State Bank of India is secured by pari passu first charge on the fixed assets of the Sugar Complex at Sugar Unit V
The loan carries Interest at the rate of Bank''s Base rate plus 2.50% and repayable in 20 equal quarterly installments starting from December 2017
4.10 Term loan of Rs 3750 Lakhs from The Karur Vysya Bank Ltd is secured by pari passu second charge on the fixed assets of the Sugar Unit V
The loan carries Interest at the rate of Bank''s Base rate plus 1.50% and repayable in 16 equal quarterly installments with moratorium of 12 months from the date of first a ailment
The loan amount repayable within twelve months is Rs 1250 lakhs is grouped under Other Current Liabilities
4.11 Loan from Sugar Development Fund (Government of India) availed for setting up of co-generation plant in Sugar Unit-IV, amounting to Rs 1922.79 Lakhs (Rs 2403.48 lakhs) is secured by way of first charge on the movable and immovable properties of Sugar Unit-IV and first pari passu charge on the movable and immovable properties of co-generation plant in Sugar Unit IV
The loan carries interest at the rate of 2% below the bank rate prevailing on the date of disbursement. Repayment of principal commenced after the expiry of three years and in ten equal half yearly installments The interest on the loan shall be paid half-yearly from the date of disbursement The loan was disbursed during the financial year 2013
The loan amount repayable within twelve months is Rs 480.70 lakhs (Rs 480.70 Lakhs) is grouped under Other Current Liabilities
4.12 Loan from Sugar Development Fund (Government of India) availed for implementation of the schemes aimed at development of sugar cane in the factory area of Sugar Unit-II, amounting to Rs 472.50 Lakhs (Rs 540 lakhs) is secured by way of exclusive second charge on the movable and immovable properties of Sugar Unit-II
Repayment of principal commenced after the expiry of three years and in four equal annual installments. The loan carries interest at the rate of 2% below the bank rate prevailing on the date of disbursement. The loan was disbursed in two installments of Rs 270 lakhs each The interest on the first installment of Rs 270 lakhs disbursed during the financial year
2013 is payable annually and the interest on the second installment of Rs 270 lakhs disbursed during the financial year 2014 is payable half yearly from the date of disbursement
The loan amount repayable within twelve months is Rs 101.25 lakhs (Rs 67.50 Lakhs) is grouped under Other Current Liabilities
4.13 Loan of Rs 7556.67 Lakhs (Rs 7840 Lakhs) under SEFASU notified by Government of India availed from Punjab National Bank, The HDFC Bank Ltd and Indian Overseas Bank is secured by residual third charge on all fixed assets forming part of block assets and land and buildings of Sugar Units I, II, III and IV
The loan availed from Punjab National Bank and HDFC Bank Ltd carries interest at the rate of 12% per annum and loan availed from Indian Overseas Bank carries interest at the rate of Bank''s base rate plus 0.50% The loan is eligible interest subvention upto 12% and is re-payble in 36 equal monthly installments after the expiry of 2 years from the date of disbursement
The loan amount repayable within twelve months is Rs 2620 lakhs (Rs 218.33) is grouped under Other Current Liabilities
4.14 Loan of Rs 1127.99 under SEFASU notified by Government of India availed from Central Bank of India and The Karur Vysya Bank Ltd is secured by residual first charge on all fixed assets of Sugar Units V
The loan availed from Central Bank of India carries interest at the rate of 12% per annum and loan availed from The Karur Vysya Bank Ltd carries interest at the rate of Bank''s base rate plus 0.50% The loan is eligible interest subvention upto 12% and is re-payble in 36 equal monthly installments after the expiry of 2 years from the date of disbursement
The loan amount repayable within twelve months is Rs 344.33 is grouped under Other Current Liabilities
4.15 Loan of Rs 4250 Lakhs (Nil) under SOFT LOAN notified by Government of India availed from The HDFC Bank Ltd and Union Bank of India is secured by residual third charge on all fixed assets forming part of block assets and land and buildings of Sugar Units I, II, III and IV
The loan availed from HDFC Bank Ltd carries interest at the rate of 10% per annum for the first twelve months and at HDFC bank rate for the second and third year of loan or subject to change as per Government / Reserve Bank of India The loan availed from Union Bank of India carries interest at the rate of Bank''s base rate The loan availed from HDFC Bank Ltd is repayable in 8 equal quarterly installments after expiry of one year from the date of first disbursement The loan availed from Union Bank of India is repayable in 16 equal quarterly installments after expiry of one year The loan is eligible interest subvention for one year
The loan amount repayable within twelve months is Rs 1308.75 lakhs (Nil) is grouped under Other Current Liabilities
4.16 The interest free loan availed by M/s Madras Sugars Limited from a related party is repayable as specified in the scheme of amalgamation and the same will continue to be interest free loan until repayment
7.1 Cash Credit and other Working Capital Limits/ Demand Loan sanctioned by Punjab National Bank consortium consists of Punjab National Bank Bank of Baroda Canara Bank The Federal Bank Ltd The Karur Vysya Bank Ltd Union Bank of India Indian Overseas Bank State Bank of Travancore State Bank of India State Bank of Hyderabad Bank of India Axis bank Ltd ICICI Bank Ltd and The HDFC Bank Ltd to the company''s Sugar Units I, II, III and IV are secured by way of hypothecation of current assets and other movable block assets of the sugar units and third mortgage on the immovable properties of the Sugar units I, II, III and IV
The credit limit availed as at 31.3.2016 is Rs 43961.29 Lakhs (Rs 56945.04 Lakhs)
The availed limits are repayable on demand and carries interest rates between Bank''s base rate plus 0.25% and 1.35% per annum
7.2 Cash Credit and other Working Capital Limits/ Demand Loan sanctioned by State Bank of India, Axis Bank Ltd, Central Bank of India and Allahabad Bank to the company''s Sugar Unit - V are secured by way of hypothecation of current assets and other movable block assets of the sugar unit and cogeneration units and third mortgage on the immovable properties of the Sugar and Cogeneration units
The credit limit availed as at 31.3.2016 is Rs 12670.26 Lakhs
The availed limits are repayable on demand and carries interest rates between Bank''s base rate plus 1% and 2% per annum
7.3 Packing Credit Limit and other working capital limits sanctioned by Punjab National Bank and State Bank of India to Granite Division are secured by of hypothecation of current assets and second mortgage on other movable and immovable properties of Granite Division
The credit limit availed as at 31.3.2016 is Nil (Rs 500 Lakhs)
The credit limits availed are repayable on demand and carries interest ranges between Bank''s base rate plus 0.45% and 0.50% per annum
7.4 Cash Credit Limits sanction by Canara Bank and The Lakshmi Vilas Bank Ltd to Distillery unit at Tamilnadu are secured by way of Hypothecation of current assets and second charge on other movable and immovable properties of the Distillery unit in Tamilnadu
The credit limit availed as at 31.3.2016 is Rs 229.06 Lakhs (Rs.247.60 Lakhs)
The cash credit limits are repayable on demand and carries interest ranges between Bank''s base rate plus 0.30% and 1.25% per annum
7.5 The Unsecured Short term loan of Rs 5000 lakhs from HDFC Bank Ltd is repayable within ninety days from the date of a ailment and carries interest at the rate of 9.30% per annum
The Unsecured Shot term Vendor Financing/Purchase Invoice Discounting facility of Rs. 2389.34 lakhs from Axis Bank Ltd is repayable within one hundred and twenty days from the date of a ailment and carries interest at the bank''s rate plus 0.1% per annum
The Unsecured Short term loan of Rs. 3000 lakhs from HDFC Bank Ltd is repayable within ninety days from the date of a ailment and carries interest at the rate of 10.25% per annum
7.6 The Inter Corporate Deposit and other loans availed by M/s Madras Sugars Limited from the related parties will be repaid as specified in the scheme of amalgamation
The vendors of the Company are yet to submit their status under Micro, Small and Medium Enterprises; hence the relevant information is not available with the company. Accordingly no disclosures relating to Micro, Small and Medium Enterprises have been made in the accounts
Mar 31, 2015
1.1 The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
Section 133 of the Companies Act 2013 read with Rule 7 of the Companies
(Accounts) Rules 2014 The financial statements have been prepared on
going concern basis under the historical cost convention The accounting
policies adopted in the preparation of the financial statements are
consistent with those followed in the previous year
1.2 Fixed Assets : The Fixed Assets are carried at Cost less
accumulated depreciation and impairment losses if any Cost includes
related taxes duties freight insurance etc attributable to acquisition
and installation of assets and borrowing cost incurred up to the date
of commencing operations but excludes duties and taxes that are
recoverable from taxing authorities Subsequent expenditure relating to
fixed assets is capitalised only if such expenditure results in an
increase in the future benefits from such asset be yond its previously
assessed standard of performance Assets which are not ready for their
intended use and other capital work in progress are carried at cost
comprising direct cost related incidental expenses and attributable
interest
1.3 Long Term Investments: Investments are accounted at cost The
diminution in the market value of long term investments is recognized
when diminution is considered permanent
1.4 Depreciation : Straight line method has been adopted for providing
depreciation on fixed assets over the useful life of the assets
prescribed under Schedule II to the Companies Act 2013 other than for
Co-Generation Division and Wind Mill Division For the assets of
Co-Generation division and Wind Mill Division depreciation has been
provided under written down value method For additions and deletions
depreciation is provided from/to the date of addition/deletion on
pro-rata basis Depreciation on asset additions costing Rs 5000/- or
less is provided at the rate of 100% in the year of capitalisation
1.5 Valuation of Inventory :
i) Finished Goods
Sugar
Granite Blocks
Polished Granite slabs and tiles
Molasses At weighted average cost or Net
Bagasse Realisable value whichever is lower
Industrial Alcohol
Fusel Oil
Bio-compost
Sawn Granite slabs and process stock - At cost or net realisable value
whichever is lower
Raw material consumables stores & At weighted average cost or Net
spares and others Realisable value whichever is
lower
ii) The cost for the finished goods and process stock is inclusive of
cost of purchase cost of conversion Excise duty cess if any and other
costs incurred in bringing the inventories to their present location
and condition
1.6 Revenue Recognition: All Income and Expenses are accounted on
accrual basis in line with Accounting Standard 9 (AS-9) The turnover is
accounted without considering inter-division transfers for own
consumption
1.7 Foreign Currency transactions : Foreign currency transactions are
recorded at the exchange rate prevailing on the date of the transaction
Foreign currency monetary items as at the balance sheet date are
reported using the closing rate or at the rate that is likely to be
realised from/required to be disbursed The gain or loss due to increase
or decrease in value of reporting currency due to fluctuations in rates
of exchange are recognized in the statement of profit and loss
1.8 Provision Contingent liabilities & Contingent assets : Provision is
recognised only when there is a present obligation as a result of past
event and it is probable that there will be an outflow of resources
Contingent liabilities are not recognised but are shown by way of notes
Contingent assets are neither recognised nor disclosed in the financial
statements
1.9 Impairment of assets: Impairment of assets are assessed as at the
close of each financial year and appropriate provision if any are
recognised and given effect to the Accounts
1.10 Taxation: Current tax is determined at the current rates of Income
Tax on taxable income and tax credits are computed in accordance with
the provisions of the Income Tax Act 1961 Minimum Alternate Tax (MAT)
paid in accordance with the tax laws which give future economic benefit
in the form of adjustment to future income tax liability is considered
as an asset if there is convincing evidence that the company will pay
normal income tax Accordingly MAT is recognised as an asset in the
balance sheet when it is probable that future economic benefit
associated with it will flow to the Company
1. 11 Deferred Tax: Deferred tax is recognized on timing difference
between the accounting income and the taxable income for the year and
quantified using the tax rates and laws that have been substantially
enacted as at the balance sheet date The deferred tax assets are
recognized and carried forward to the extent that there is a reasonable
certainty that these would be realized in future
1.12 Government grants: Government grants are recognized based on the
reasonable assurance that the Company will comply with the condition
attached to the grants and the grants will be received Government grant
in the nature of revenue has been recognized on a systematic basis in
the statement of profit and loss over the periods necessary to match
them with the related costs which they are intended to compensate
Export benefits are accounted for in the year of exports based on
eligibility and when there is no uncertainty in receiving the same
1.13 Segment reporting: The segment reporting is in line with the
accounting policies of the Company Inter segment transactions have been
accounted for based on the price which has been arrived at considering
cost and market price Revenue and expenses that are directly
identifiable with or allocable to segments are considered for
determining the segment results Segment assets and liabilities include
those directly identifiable with the respective segments Business
segments are identified on the basis of the nature of products the
risk/return profile of individual business the organizational structure
and the internal reporting system of the Company
1.14 Leases: The Company's significant leasing arrangements are
operating leases and cancelable in nature. The lease rentals
paid/received under such agreements are accounted in the statement of
profit and loss
1.15 Employee benefits : Provident Fund Employees State Insurance are
defined contribution schemes and contributions are charged to statement
of profit and loss of the year in which the contributions to the
respective funds are due The Company has opted for LIC group gratuity
scheme which is a defined benefit scheme For calculating gratuity
liability the premium ascertained by LIC has been taken into account
Long term accumulated absences are provided based on the actuarial
valuation
1.16 Excise duty : The Excise Duty on sale of finished goods is
deducted from turnover to arrive at net sales as shown in the statement
of profit and loss The Excise Duty appearing in the statement of profit
and loss as an expenditure represents excise duty provision for
difference between opening and closing stock of finished goods
1.17 Cash Flow Statement : Cash flows are reported using the indirect
method whereby profit/(loss) before extraordinary items and tax is
adjusted for the effects of transactions of non cash nature and any
difference are accruals of past or future cash receipts or payments The
cash flows from operating investing and financing activities of the
company are segregated based on the available information
1. 18 Borrowing Cost : Borrowing cost which are directly attributable
to the construction of qualifying assets are capitalised as a part of
the cost of the asset
Mar 31, 2014
1.1 The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
Section 211(3C) of the Companies Act 1956 (which continue to the
applicable in respect of Section 133 of the Companies Act 2013 in the
terms of General Circular 15/2013 dated 13.9.2013 of the Ministry of
Corporate Affairs and the relevant provisions of the Companies Act 1956
The financial statements have been prepared on accrual and going
concern basis under the historical cost convention The accounting
policies adopted in the preparation of the financial statements are
consistent with those followed in the previous year
1.2 Fixed Assets : The Fixed Assets are carried at Cost less
accumulated depreciation and impairment losses if any Cost includes
related taxes duties freight insurance etc attributable to acquisition
and installation of assets and borrowing cost incurred up to the date
of commencing operations but excludes duties and taxes that are
recoverable from taxing authorities Subsequent expenditure relating to
fixed assets is capitalised only if such expenditure results in an
increase in the future benefits from such asset beyond its previously
assessed standard of performance Assets which are not ready for their
intended use and other capital work in progress are carried at cost
comprising direct cost related incidental expenses and attributable
interest
1.3 Long Term Investments: Investments are accounted at cost The
diminution in the market value of long term investments is recognized
when diminution is considered permanent
1.4 Depreciation : Straight line method has been adopted for providing
depreciation on fixed assets as per the rates prescribed in Schedule
XIV to the Companies Act 1956 other than for Co-Generation Division and
Wind Mill Division For the assets of Co-Generation division and Wind
Mill Division depreciation has been provided under written down value
method as per the rates prescribed in Schedule XIV to the Companies Act
1956 For additions and deletions depreciation is provided from/to the
date of addition/deletion on pro-rata basis Depreciation on asset
additions costing Rs 5000/- or less is provided at the rate of 100% in
the year of capitalisation
1.5 Valuation of Inventory :
(I) Finished Goods Sugar Granite Blocks
Polished Granite slabs and tiles
Molasses At weighted average cost or Net
Bagasse Realisable value whichever is lower
Industrial Alcohol
Fusel Oil
Bio-compost -I
Sawn Granite slabs and process stock - At cost or net realisable value
whichever is lower
-I At weighted average cost or Net Raw material consumables stores &
spares and others J Realisable value whichever is lower
(II) The cost for the finished goods and process stock is inclusive of
cost of purchase cost of conversion Excise duty cess if
any and other costs incurred in bringing the inventories to their
present location and condition
1.6 Revenue Recognition: All Income and Expenses are accounted on
accrual basis in line with Accounting Standard 9 (AS 9) The turnover is
accounted without considering inter-division transfers for own
consumption
1.7 Foreign Currency transactions : Foreign currency transactions are
recorded at the exchange rate prevailing on the date of the transaction
Foreign currency monetary items as at the balance sheet date are
reported using the closing rate or at the rate that is likely to be
realised from / required to disburse The gain or loss due to increase
or decrease in value of reporting currency due to fluctuations in rates
of exchange are recognized in the statement of profit and loss
1.8 Provision Contingent liabilities & Contingent assets : Provision is
recognised only when there is a present obligation as a result of past
event and it is probable that there will be an outflow of resources
Contingent liabilities are not recognised but are shown by way of notes
Contingent assets are neither recognised nor disclosed in the financial
statements
1.9 Impairment of assets: Impairment of assets are assessed as at the
close of each financial year and appropriate provision if any are
recognised and given effect to the accounts
1.10 Taxation: Current tax is determined at the current rates of Income
Tax on taxable income and tax credits are computed in accordance with
the provisions of the Income Tax Act 1961 Minimum Alternate Tax (MAT)
paid in accordance with the tax laws which give future economic benefit
in the form of adjustment to future income tax liability is considered
as an asset if there is convincing evidence that the company will pay
normal income tax Accordingly MAT is recogonised as an asset in the
balance sheet when it is probable that future economic benefit
associated with it will flow to the company
1. 11 Deferred Tax: Deferred tax is recognized on timing difference
between the accounting income and the taxable income for the year and
quantified using the tax rates and laws that have been substantially
enacted as at the balance sheet date The deferred tax assets are
recognized and carried forward to the extent that there is a reasonable
certainty that these would be realized in future
1.12 Government grants: Government grants are recognized based on the
reasonable assurance that the Company will comply with the condition
attached to the grants and the grants will be received Government grant
in the nature of revenue has been recognized on a systematic basis in
the statement of profit and loss over the periods necessary to match
them with the related costs which they are intended to compensate
Export benefits are accounted for in the year of exports based on
eligibility and when there is no uncertainty in receiving the same
1.13 Segment reporting: The segment reporting is in line with the
accounting policies of the Company Inter segment transactions have been
accounted for based on the price which has been arrived at considering
cost and market price Revenue and expenses that are directly
identifiable with or allocable to segments are considered for
determining the segment results Segment assets and liabilities include
those directly identifiable with the respective segments Business
segments are identified on the basis of the nature of products the
risk/return profile of individual business the organizational structure
and the internal reporting system of the Company
1.14 Leases: The Company''s significant leasing arrangements are
operating leases and cancellable in nature The lease rentals
paid/received under such agreements are accounted in the statement of
profit and loss
1.15 Employee benefits : Provident Fund Employees State Insurance and
Gratuity are defined contribution schemes and contributions are charged
to statement of profit and loss of the year in which the contributions
to the respective funds are due The Company has opted for LIC group
gratuity scheme For calculating gratuity liability the premium
ascertained by LIC has been taken into account Long term accumulated
absences are provided based on the actuarian valuation
1.16 Excise duty : The Excise Duty on sale of finished goods is
deducted from turnover to arrive at net sales as shown in the statement
of profit and loss The Excise Duty appearing in the statement of profit
and loss as an expenditure represents excise duty provision for
difference between opening and closing stock of finished goods
1.17 Cash Flow Statement : Cash flows are reported using the indirect
method whereby profit/(loss) before extraordinary items and tax is
adjusted for the effects of transactions of non cash nature and any
difference are accruals of past or future cash receipts or payments The
cash flows from operating investing and financing activities of the
company are segregated based on the available information
1. 18 Borrowing Cost : Borrowing cost which are directly attributable
to the construction of qualifying assets are capitalised as a part of
the cost of the asset
c. Terms / rights attached to equity shares
The company has issued only one class of equity shares having face
value of Rs10/- each One equity share carries one vote The members are
entitled to vote in accordance with their shareholding The Company
declares and pays dividend in Indian rupees The dividend recommended by
the Board of Directors is subject to the approval of the shareholders
in the ensuing Annual General Meeting
4.1 Rupee term loan of Rs 1400 lakhs (Rs 2800 lakhs) from Axis Bank Ltd
is secured by pari passu charge on the movable
plant and machinery and pari passu second charge on the current assets
of the Co-generation Plant at Sugar Unit IV The loan is further secured
by mortgage on lands admeasuring 50.93 acres and buildings thereon
pertaining to the Co-generation Plant at Sugar Unit IV
The loan carries interest at the rate of Bank''s Base rate plus 1.50%
and repayable in 20 equal quarterly instalments of Rs 350 lakhs each
starting from June 2010
The loan amount repayable within twelve months is Rs 1400 lakhs (Rs1400
lakhs) is grouped under other Current Liabilities
4.2 Rupee term loan of Rs 6800 lakhs (Nil) from HDFC Bank Ltd is
secured by pari passu first charge on the movable plant and machinery
of the Sugar and Co-generation Plant at Sugar Unit III
The loan carries interest at the rate of Bank''s Base rate plus 1% and
repayable in 20 equal quarterly instalments starting from October 2015
4.3 Rupee term loan of Rs 7100 lakhs (Nil) from State Bank of India is
secured by pari passu first change on the movable plant and machinery
of the Sugar and Co-generation Plant at Sugar Unit III
The loan carries interest at the rate of Bank''s Base rate plus 1% and
repayable in 20 equal quarterly instalments of starting from March 2015
The loan amount repayable within twelve months is Rs 400 lakhs (Nil) is
grouped under Other Current Liabilities
4.4 Rupee term loan of Rs 2000 lakhs (Nil) from The Federal Bank Ltd is
secured by pari passu first charge on the movable plant and machinery
of the Sugar and Co-generation Plant at Sugar Unit III
The loan carries interest at the rate of Bank''s base rate plus 0.45%
and repayable in 20 equal quarterly installments starting from October
2015
4.5 Loan from Sugar Development Fund (Government of India) availed for
modernisation/expansion of Sugar Unit I amounting to Rs 155.08 Lakhs
(Rs 465.23 Lakhs) is secured by way of exclusive second charge on the
movable and immovable properties of Sugar Unit I
The loan carries interest at the rate of 2% below the bank rate
prevailing on the date of disbursement Repayment of principal and
payment of interest thereon commenced after a period of 8 years from
the date of disbursement and in five equal annual instalments The loan
was disbursed during the financial year 2002
The loan amount repayable within twelve months is Rs 155.08 lakhs (Rs
310.16 lakhs) which is grouped under other current Liabilities
4.6 Loan from Sugar Development Fund (Government of India) availed for
setting up of co-generation plant in Sugar Unit IV amounting to Rs
2403.48 lakhs (Rs 2403.48 lakhs) is secured by way of first charge on
the movable and immovable properties of Sugar Unit IV and first pari
passu charge on the movable and immovable properties of co-generation
plant in Sugar Unit IV
The loan carries interest at the rate of 2% below the bank rate
prevailing on the date of disbursement Repayment of principal commenced
after the expiry of three years and in ten equal half yearly
instalments The interest on the loan shall be paid half-yearly from the
date of disbursement The Loan was disbursed during the financial year
2013
4.7 Loan from Sugar Development Fund (Government of India) availed for
implementation of the schemes aimed at development of sugar cane in the
factory area of Sugar Unit II amounting to Rs 540 lakhs (Rs 270 lakhs)
is secured by way of exclusive second charge on the movable and
immovable properties of Sugar Unit II
The loan carries interest at the rate of 2% below the bank rate
prevailing on the date of disbursement Repayment of principal commenced
after the expiry of three years and in four equal annual installments
The interest on the loan shall be paid annually from the date of
disbursement The loan was disbursed during the financial year 2013 and
2014
4.8 Loan of Rs 5811.58 lakhs (Rs 38.83 lakhs) under SEFASU notified by
Government of India availed from Punjab National Bank The HDFC Bank Ltd
and Indian Overseas Bank is to be secured by residual third charge on
all fixed assets forming part of block assets and land and buildings of
Sugar Units I, II, III and IV
The loan carries interest subvention at the rate of 12% per annum and
is repayable in 36 equal monthly instalments after the expiry of 2
years from the date of disbursement
8.1 Cash Credit and other Working Capital Limits/ Demand Loan
sanctioned by Punjab National Bank consortium consists of Punjab
National Bank Bank of Baroda Canara Bank The Federal Bank Limited The
Karur Vysya Bank Limited Union Bank of India Indian Overseas Bank State
Bank of Travancore State Bank of India State Bank of Hyderabad Bank of
India Axis Bank Limited ICICI Bank Limited and HDFC Bank Limited to the
Company''s Sugar Units are secured by way of hypothecation of current
assets and other movable block assets of the Sugar Units and third
mortgage on the immovable properties of the Sugar Units
The credit limits availed as at 31.3.2014 is Rs 48967.42 lakhs (Rs
29642.38 lakhs)
The availed limits are repayable on demand and carries interest rates
between Bank''s base rate plus 0.25% and 1% per annum
8.2 Packing Credit Limit and other working capital limits sanctioned by
Punjab National Bank and State Bank of India to Granite Division are
secured by way of hypothecation of current assets and second mortgage
on other movable and immovable properties of Granite Division
The credit limits availed as at 31.3.2014 is Rs 500.00 lakhs (Rs Nil)
The credit limits availed are repayable on demand and carries interest
ranges between Bank''s Base Rate plus 0.25% and 1.50% per annum
8.3 Cash Credit Limits sanctioned by Canara Bank and The Lakshmi Vilas
Bank Ltd to Distillery Unit in Tamilnadu are secured by way of
Hypothecation of current assets and second charge on other movable and
immovable properties of the Distillery Unit in Tamilnadu
The credit limits availed as at 31.3.2014 is Rs 148.28 lakhs (Rs 119.70
lakhs)
The cash credit limits are repayable on demand and carries interest
ranges between Bank''s base rate plus 0.50% and 2.75% per annum
8.4 The Unsecured Short term loan of Rs 5000 lakhs (Rs 2000 lakhs) from
ING Vysya Bank is repayable within six months from the date of
availment and carries interest at the rate of 10.80% per annum
The Unsecured Short term loan of Rs 2000 lakhs (Rs 5000 lakhs) from
HDFC Bank Ltd is repayable within ninety days from the date of
availment and carries interest at the rate of 10.20% per annum
The Unsecured Short term loan of Rs 9000 lakhs from HDFC Bank Ltd is
repayable within ninety days from the date of availment and carries
interest at the rate of 10.50% per annum
The Unsecured Export Credit of Rs 5000 lakhs from HDFC Bank Ltd is
repayable within sixty days from the date of availment and carries
interest at the rate of 10% per annum
The Unsecured Working Capital Demand loan of Rs 5000 lakhs from Rabo
Bank International is repayable within fifty seven days from the date
of availment and carries interest at the rate of 10.35% per annum
The Unsecured Short term loan of Rs 2500 lakhs from Canara Bank is
repayable in four equal monthly instalment starting from May'' 2014 and
carries interest at the Banks Base rate plus 0.50% per annum
The vendors of the Company are yet to submit their status under Micro
Small and Medium Enterprises hence the relevant information is not
available with the company Accordingly no disclosures relating to Micro
Small and Medium Enterprises have been made in the Accounts
Mar 31, 2013
1.1 The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules 2006 (as amended) and the
relevant provisions of the Companies Act 1956 The financial statements
have been prepared on going concern basis under the historical cost
convention The accounting policies adopted in the preparation of the
financial statements are consistent with those followed in the previous
year
1.2 Fixed Assets : The Fixed Assets are carried at Cost less
accumulated depreciation and impairment losses if any Cost includes
related taxes duties freight insurance etc attributable to acquisition
and installation of assets and borrowing cost incurred up to the date
of commencing operations but excludes duties and taxes that are
recoverable from taxing authorities Subsequent expenditure relating to
fixed assets is capitalised only if such expenditure results in an
increase in the future benefits from such asset beyond its previously
assessed standard of performance Assets which are not ready for their
intended use and other capital work in progress are carried at cost
comprising direct cost related incidental expenses and attributable
interest
1.3 Long Term Investments: Investments are accounted at cost The
diminution in the market value of long term investments is recognized
when diminution is considered permanent
1.4 Depreciation : Straight line method has been adopted for providing
depreciation on fixed assets as per the rates prescribed in Schedule
XIV to the Companies Act 1956 other than for Co-Generation Division and
Wind Mill Division For the assets of Co-Generation division and Wind
Mill Division depreciation has been provided under written down value
method as per the rates prescribed in Schedule XIV to the Companies Act
1956 For additions and deletions depreciation is provided from/to the
date of addition/deletion on pro-rata basis Depreciation on asset
additions costing Rs.5000/- or less is provided at the rate of 100% in
the year of capitalisation
1.5 Valuation of Inventory :
(I) Finished Goods
Sugar
Granite Blocks
Polished Granite slabs and tiles
Masses
Bagasse
Industrial Alcohol Fusel Oil
Bio-compost
At weighted average cost or Net Realisable value whichever is lower
Sawn Granite slabs and process stock
Raw material consumables stores & spares and others
At cost or net realisable value whichever is lower At weighted average
cost or Net Realisable value whichever is lower
(II) The cost for the finished goods and process stock is inclusive of
cost of purchase cost of conversion Excise duty cess if any and other
costs incurred in bringing the inventories to their present location
and condition
1.6 Revenue Recognition: All Income and Expenses are accounted on
accrual basis The turnover is accounted without considering
inter-division transfers for own consumption
1.7 Foreign Currency transactions : Foreign currency transactions are
recorded at the exchange rate prevailing on the date of the transaction
Foreign currency monetary items as at the balance sheet date are
reported using the closing rate or at the rate that is likely to be
realised from / required to disburse The gain or loss due to increase
or decrease in value of reporting currency due to fluctuations in rates
of exchange are recognized in the statement of profit and loss
1.8 Provision, Contingent liabilities & Contingent assets : Provision
is recognised only when there is a present obligation as a result of
past event and it is probable that there will be an outflow of
resources Contingent liabilities are not recognised but are shown by
way of notes Contingent assets are neither recognised nor disclosed in
the financial statements
1.9 Impairment of assets: Impairment of assets are assessed as at the
close of each financial year and appropriate provision if any are
recognised and given effect to the accounts
1.10 Taxation: Current tax is determined at the current accordance with
the provisions of the Income Tax Act 1961 Minimum Alternate Tax (MAT)
paid in accordance with the tax laws which give future economic benefit
in the form of adjusment to future income tax liability is considered
as an asset if there is convincing evidence that the company will pay
normal income tax Accordingly MAT is recogonised as an asset in the
balance sheet when it is probable that future economic benefit
associated with it will flow to the company
1. 11 Deferred Tax: Deferred tax is recognized on timing difference
between the accounting income and the taxable income for the year and
quantified using the tax rates and laws that have been substantially
enacted as at the balance sheet date The deferred tax assets are
recognized and carried forward to the extent that there is a reasonable
certainty that these would be realized in future
1.12 Government grants: Government grants are recognized based on the
reasonable assurance that the Company will comply with the condition
attached to the grants and the grants will be received Government grant
in the nature of revenue has been recognized on a systematic basis in
the statement of profit and loss over the periods necessary to match
them with the related costs which they are intended to compensate
Export benefits are accounted for in the year of exports based on
eligibility and when there is no uncertainty in receiving the same
1.13 Segment reporting: The segment reporting is in line with the
accounting policies of the Company Inter segment transactions have been
accounted for based on the price which has been arrived at considering
cost and market price Revenue and expenses that are directly
identifiable with or allocable to segments are considered for
determining the segment results Segment assets and liabilities include
those directly identifiable with the respective segments Business
segments are identified on the basis of the nature of products the
risk/return profile of individual business the organizational structure
and the internal reporting system of the Company
1.14 Leases: The Company''s significant leasing arrangements are
operating leases and cancellable in nature The lease rentals
paid/received under such agreements are accounted in the statement of
profit and loss
1.15 Employee benefits : Provident Fund Employees State Insurance and
Gratuity are defined contribution schemes and contributions are charged
to statement of profit and loss of the year in which the contributions
to the respective funds are due The Company has opted for LIC group
gratuity scheme For calculating gratuity liability the premium
ascertained by LIC has been taken into account Long term accumulated
absences are provided based on the actuarian valuation
1.16 Excise duty : The Excise Duty on sale of finished goods is
deducted from turnover to arrive at net sales as shown in the statement
of profit and loss The Excise Duty appearing in the statement of profit
and loss as an expenditure represents excise duty provision for
difference between opening and closing stock of finished goods
1.17 Cash Flow Statement : Cash flows are reported using the indirect
method whereby profit/(loss) before extraordinary items and tax is
adjusted for the effects of transactions of non cash nature and any
difference are accruals of past or future cash receipts or payments The
cash flows from operating investing and financing activities of the
company are segregated based on the available information
1. 18 Borrowing Cost : Borrowing cost which are directly attributable
to the construction of qualifying assets are capitalised as a part of
the cost of the asset
Mar 31, 2012
1.1 The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956 . The financial
statements have been prepared on going concern basis under the
historical cost convention. The accounting policies adopted in the
preparation of the financial statements are consistent with those
followed in the previous year
1.2 Fixed Assets : The Fixed Assets are carried at Cost less
accumulated depreciation and impairment losses, if any.
Cost includes related taxes, duties, freight, insurance etc.,
attributable to acquisition and installation of assets and borrowing
cost incurred up to the date of commencing operations, but excludes
duties and taxes that are recoverable from taxing authorities.
Subsequent expenditure relating to fixed assets is capitalized only if
such expenditure results in an increase in the future benefits from
such asset beyond its previously assessed standard of performance.
Assets which are not ready for their intended use and other capital
work in progress are carried at cost, comprising direct cost, related
incidental expenses and attributable interest
1.3 Long Term Investments : Investments are accounted at cost. The
diminution in the market value of long term investments is recognized
when diminution is considered permanent
1.4 Depreciation : Straight line method has been adopted for providing
depreciation on fixed assets as per the rates prescribed in Schedule
XIV to the Companies Act 1956, other than for Co-Generation Division
and Wind Mill Division. For the assets of Co-Generation division and
Wind M ill Division, depreciation has been provided under written down
value method as per the rates prescribed in Schedule XIV to the
Companies Act, 1956 . For additions and deletions, depreciation is
provided from/to the date of addition/deletion on pro-rata basis.
Depreciation on asset additions costing Rs.5000/- or less is provided
at the rate of 100% in the year of capitalisation
1.5 Valuation of Inventory :
(I) Finished Goods
Sugar
Granite Blocks
Polished Granite slabs and tiles
Molasses At weighted average cost or Net
Bagasse Realizable value whichever is
lower.
Industrial Alcohol
Fuel Oil
Bio-compost
Sawn Granite slabs and
process stock - At cost or net realizable
value whichever is lower
Raw material, consumables,
stores & spares and others At weighted average cost or Net
Realizable value whichever is
lower
(II) The cost for the finished goods and process stock is inclusive of
cost of purchase, cost of conversion, excise duty, cess if any and
other costs incurred in bringing the inventories to their present
location and condition
1.6 Revenue Recognition : All Income and Expenses are accounted on
accrual basis. The turnover is accounted without considering
inter-division transfers for own consumption
1.7 Foreign Currency Transactions I Foreign currency transactions are
recorded at the exchange rate prevailing on the date of the
transaction. Foreign currency monetary items as at the balance sheet
date are reported using the closing rate or at the rate that is likely
to be realized from / required to disburse. The gain or loss due to
increase or decrease in value of reporting currency due to fluctuations
in rates of exchange are recognized in the Statement of Profit and Loss
1.8 Provision, Contingent Liabilities & Contingent Assets I Provision
is recognized only when there is a present obligation as a result of
past event and it is probable that there will be an outflow of
resources. Contingent liabilities are not recognized but are shown by
way of notes. Contingent assets are neither recognized nor disclosed in
the financial statements
1.9 Impairment of Assets I Impairment of assets are assessed as at the
close of each financial year and appropriate provision if any, are
recognized and given effect to the accounts
1.10 Taxation Current tax is determined at the current rates of
Income Tax on taxable income and tax credits are computed in accordance
with the provisions of the Income Tax Act, 1961.Minimum Alternate Tax
(MAT) paid in accordance with the tax laws, which give future economic
benefit in the form of adjustment to future income tax liability is
considered as an asset if there is convincing evidence that the company
will pay normal income tax. Accordingly MAT is recognized as an asset
in the balance sheet when it is probable that future economic benefit
associated with it will flow to the company
1.11 Deferred Tax i Deferred tax is recognized on timing difference
between the accounting income and the taxable income for the year and
quantified using the tax rates and laws that have been substantially
enacted as at the balance sheet date. The deferred tax assets are
recognized and carried forward to the extent that there is a reasonable
certainty that these would be realized in future
1.12 Government Grants i Government grants are recognized based on the
reasonable assurance that the Company will comply with the condition
attached to the grants and the grants will be received. Government
grant in the nature of revenue has been recognized on a systematic
basis in the statement of profit and loss over the periods necessary to
match them with the related costs which they are intended to
compensate. Export benefits are accounted for in the year of exports
based on eligibility and when there is no uncertainty in receiving the
same
1.13 Segment Reporting I The segment reporting is in line with the
accounting policies of the Company. Inter segment transactions have
been accounted for, based on the price which has been arrived at
considering cost and market price. Revenue and expenses that are
directly identifiable with or allocable to segments are considered for
determining the segment results. Segment assets and liabilities include
those directly identifiable with the respective segments. Business
segments are identified on the basis of the nature of products, the ris
k/ return profile of individual business, the organizational structure
and the internal reporting system of the Company
1.14 Leases I The Company s significant leasing arrangements are
operating leases and cancelable in nature. The lease rentals
paid/received under such agreements are accounted in the statement of
profit and loss
1.15 Employee Benefits I Provident Fund, Employees State Insurance and
Gratuity are defined contribution schemes and contributions are charged
to statement of profit and loss of the year in which the contributions
to the respective funds are due. Gratuity liability to the Employees on
actuarial basis has been accounted in full. The Company has opted for
LIC group gratuity scheme. For calculating gratuity liability the
premium ascertained by LIC has been taken into account. Long term
accumulated absences are provided based on the actuarial valuation
1.16 Excise Duty I The Excise Duty on sale of finished goods is
deducted from turnover to arrive at net sales as shown in the statement
of profit and loss . The Excise Duty appearing in the statement of
profit and loss as an expenditure represents excise duty provision for
difference between opening and closing stock of finished goods
1.17 Cash Flow Statement : Cash flows are reported using the indirect
method, whereby profit/(loss) before extraordinary items and tax is
adjusted for the effects of transactions of non cash nature and any
difference are accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing activities of
the company are segregated based on the available information
1.18 Borrowing Cost : Borrowing cost which are directly attributable to
the construction of qualifying assets are capitalized as a part of the
cost of the asset
Mar 31, 2011
1 The accompanying financial statements have been prepared on a going
concern basis under the historic cost convention on accrual basis of
accounting in confirmity with Generally Accepted Accounting Principles
in India ("Indian GAAP") and provisions of the Companies Act 1956
2 Fixed Assets : The Fixed Assets are valued/stated at Cost. Cost
includes related taxes, duties, freight, insurance etc., attributable
to acquisition and installation of assets and borrowing cost incurred
up to the date of commencing operations but excludes duties and taxes
that are recoverable from taxing authorities
3 Investments: Investments are accounted at cost. The diminution in the
market value of long term investments is recognized when diminution is
considered permanent
4 Depreciation : Straight line method has been adopted for providing
depreciation on fixed assets as per the rates prescribed in Schedule
XIV to the Companies Act 1956, other than for Co-Generation Division
and Wind Energy Division. For the assets of Co-Generation Division and
Wind Energy Division, depreciation has been provided under written down
value method as per the rates prescribed in Schedule XIV to the
Companies Act, 1956. For additions and deletions depreciation is
provided from/to the date of addition/deletion on pro-rata basis.
Depreciation on asset additions costing Rs 5000/- or less is provided
at the rate of 100%
5 Valuation of Inventory
(I) Finished goods Sugar
Granite blocks
Polished granite slabs and tiles Molasses Bagasse
Industrial alcohol Fusel oil Bio-compost
At cost or Net Realisable value whichever is lower
Sawn granite slabs and process stock
At estimated cost or net realisable value whichever is lower
Raw material, consumables, stores & spares and others
At weighted average cost or Net Realisable value whichever is lower
(II) The cost for the finished goods and process stock is inclusive of
weighted average cost of raw material, process material, stores and
spares, packing material and cost of conversion, excise duty, cess if
any and other costs incurred in bringing the inventories to their
present location and condition
6 Revenue Recognition : All Income and Expenses are accounted on
accrual basis. The turnover is accounted without considering
inter-division transfers for own consumption. Interest income is
recognised on time proportion basis and dividend income is recognised
when right to receive is established
7 Foreign Currency transactions : Foreign currency transactions are
recorded at the exchange rate prevailing on the date of the
transaction. Foreign currency monetary items as at the balance sheet
date are reported using the closing rate or at the
rate that is likely to be realised from / required to disburse. The
gain or loss due to increase or decrease in value of reporting currency
due to fluctuations in rates of exchange are recognized in the profit
and loss account
8 Provision, Contingent liabilities & Contingent assets: Provision is
recognised only when there is a present obligation as a result of past
event and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are shown by way of notes
attached to and forming part of accounts. Contingent assets are neither
recognised nor disclosed in the financial statements
9 Impairment of assets are assessed as at the close of each financial
year and appropriate loss if any, are charged to the Profit and loss
account
10 Gratuity liability to the Employees on actuarial basis has been
accounted in full. The Company has opted for Life Insurance Corporation
of India Group Gratuity Scheme and premium demanded by LIC upto
31.3.2011 has been accounted for and paid
11 Current tax is determined at the current rates of Income Tax on
taxable income and tax credits are computed in accordance with the
provisions of the Income Tax Act, 1961
12 Deferred tax is recognized on timing difference between the
accounting income and the taxble income for the year and quantified
using the tax rates and laws that have been substantially enacted as at
the balance sheet date. The deferred tax assets are recognized and
carried forward to the extent that there is a reasonable certainty that
these would be realized in future
13 Government grants are recognized based on the reasonable assurance
that the Company will comply with the conditions attached to the grants
and the grants will be received. Government grants in the nature of
revenue have been recognized on a systematic basis in the profit and
loss account over the periods necessary to match them with the related
costs which they are intended to compensate and the grants have been
adjusted against the related expenses.
14 The segment reporting is in line with the accounting policies of the
Company. Inter segment transactions have been accounted for, based on
the price which has been arrived at considering cost and market price.
Revenue and expenses that are directly identifiable with or allocable
to segments are considered for determining the segment results. Segment
assets and liabilities include those directly identifiable with the
respective segments. Business segments are identified on the basis of
the nature of products, the risk/return profile of individual business,
the organizational structure and the internal reporting system of the
Company
15 The Company's significant leasing arrangements are operating leases
and cancelable in nature. The lease rentals paid/received under such
agreements are accounted in the profit and loss account
16 Employee benefits: Provident Fund/Pension Fund and Gratuity
liability are defined contribution schemes and contributions are
charged to profit and loss account of the year in which the
contributions to the respective funds are due. Short term employee
benefits including accumulated compensated absences are provided for
based on the expected obligation on an undiscounted basis
17 The Excise Duty on sale of finished goods is deducted from turnover
to arrive at net sales as shown in the profit and loss account. The
Excise Duty appearing in the profit and loss account as an expenditure
represents excise duty provision for difference between opening and
closing stock of finished goods
18 Borrowing cost which are directly attributable to the construction
of qualifying assets are capitalised as a part of the cost of the asset
Mar 31, 2010
1 The accompanying financial statements have been prepared on a going
concern basis under the historic cost convention on accrual basis of
accounting in confirmitywith Generally Accepted Accounting Principles
in India ("Indian GAAP")
2 Fixed Assets : The Fixed Assets are valued/stated at Cost. Cost
includes related taxes, duties, freight, insurance etc., attributable
to acquisition and installation of assets and borrowing cost incurred
up to the date of commencing operations, but excludes duties and taxes
that are recoverable from taxing authorities
3 Investments: Investments are accounted at cost. The diminution in the
market value of long term investments is recognised when diminution is
considered permanent
4 Depreciation : Straight line method has been adopted for providing
depreciation on fixed assets as per the rates prescribed in Schedule
XIV to the Companies Act 1956,other than for Co-Generation Division and
Wind Energy Division. For the assets of Co-Generation Division and
Wind Energy Division depreciation has been provided under written down
value method as perthe rates prescribed in ScheduleXIV to the Companies
Act, 1956. For additions and deletions depreciation is provided from to
the date of addition/deletion on pro-rata basis. Depreciation on asset
additions costing Rs.5000/-or less is provided at the rate of 100%
5 Valuation of Inventory (I) Finished Goods
Sugar
Granite Blocks
Polished Granite slabs tiles and
Monuments At weighted average cost or Net
Molasses Realisable value whichever is lower
Bagasse
Industrial Alcohol
Fusel Oil
Bio-compost 1
Sawn Granite slabs and process stock - At estimated cost or net
realisable value whichever
is lower
Raw material, consumables, stores
&spares At weighted average costor Net
and others Realisablevaluewhicheveris lower
(ll)Thecostforthe finished goods and process stock is inclusive of cost
of purchase, cost of conversion Excise duty, cess if any and other
costs incurred in bringing the inventories to their present location
and condition
6 Revenue Recognition: All Income and Expenses are accounted on accrual
basis. The turnover is accounted without considering Inter-division
transfers for own consumption
7 Foreign Currency Transactions : Foreign currency transactions are
recorded at the exchange rate prevailing on the date of the
transaction. Foreign currency monetary items as at the balance sheet
date are reported using the closing rate or at the rate that is likely
to realised from / required to disburse. The gain or loss due to
increase or decrease in value of reporting currency due to fluctuations
in rates of exchange are recognised in the profit and loss account.
8 Provision, Contingent liabilities & Contingent assets : Provision is
recognised only when there is a present obligation as a result of past
event and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are shown by way of notes
attached to and forming part of accounts. Contingent assets are neither
recognised not disclosed in the financial statements
9 Impairment of assets are assessed as at the close of each financial
year and appropriate provision if any, are recognised and given effect
to inthe Accounts
10 Gratuity liability to the Employees on actuarial basis has been
accounted in full. The company has opted for Life Insurance Corporation
of India Group Gratuity Scheme and premium demanded by LIC upto 31.3.2010
has been accounted for and paid
11 Current tax is determined at the current rates of Income Tax on
taxable income and tax credits are computed in accordance with the
provisions of the Income TaxAct, 1961
12 Deferred tax is recognised on timing difference between the
accounting income and the taxable income for the year and quantified
using the tax rates and laws that have been substantially enacted as at
the balance sheet date. The deferred tax assets are recognised and
carried forward to the extent that there is a reasonable certainty that
these would be realised in future
13 Government grants are recognised based on the reasonable assurance
that the company will comply with the conditions attached to the grants
and the grants will be received. Government grant in the nature of revenue
has been recognised on a systematic basis in the profit and loss account
over the periods necessary to match them with the related costs which they
are intended to compensate and the grants have been adjusted against the
related expenses
14 The segment reporting is in line with the accounting policies of the
company. Inter segment transactions have been accounted for, based on the
price which has been arrived at considering cost and market price. Revenue
and expenses that are directly identifiable with or allocable to segments
are considered for determining the segment results. Segment assets and
liabilities include those directly identifiable with the respective segments.
Business segments are identified on the basis of the natureof products, the
risk/return profileof individual business, the organisational structure
and the internal reporting system of the company
15 The companys significant leasing arrangements are operating leases
and cancelable in nature. The lease rentals paid/received under such
agreements are accounted in the profit and loss account
16 Employee benefits : Provident Fund/Pension Fund and Gratuity
liability are defined contribution schemes and contributions are
charged to profit and loss account of the year in which the
contributions to the respective funds are due. Short term employee
benefits including accumulated compensated absences are provided for,
based on the expected obligation on an undiscounted basis
17 The Excise Duty on sale of finished goods is deducted from turnover to
arriveatnet sales as shown in the profit and loss account. The Excise
Duty appearing inthe profit and loss accountasan expenditure,
represents excise duty provision for difference between opening and
closing stock of finished goods
18 Borrowing costwhich are directly attributable to the construction of
qualifying assets are capitalised as a partof the cost of
the asset
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