Mar 31, 2015
1 Corporate Information
The Company was incorporated on 27/10/1989. The Registered office of
the company is situated at 45/47-A Industrial Area No.1, A.B. Road,
Dewas (M.R). Post merger of Premier Industries (India) Ltd. (The
Transferor Company) with our company i.e. Girdharilal Sugar & Allied
Industries Ltd. (The Transferee Company) by Board for Industrial and
Financial Reconstruction (BIFR) vide its order dated 15/01/2014, the
manufacturing facility of the merged entity now includes - i) A modern
Dairy Plant., ii) A 250 TPD Soya Solvent Plant, iii) A 50 TPD Edible
oil Refinery., iv) A Lecithin Plant, All the manufacturing facility are
situated at 45/47-A Industrial Area No.1, A.B. Road, Dewas (M.P.). The
Company had earlier issued shares to the Public. The shares are listed
at BSE and are admitted at CDSL. The Registrar and Share Transfer Agent
is Purva Sharegistry (India) Pvt. Ltd., 9 shivshakti Industrial Estate,
off N.M. Joshi Marg, Lower Parel (E), Mumbai.
Basis of Accounting
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards specified under section 133 of The Companies Act
2013 read with the rule7 of Companies (Accounts)Rules,2014 and the
relevant provisions of The Companies Act 2013 as applicable. Accounting
policies have been consistently applied except where a newly issued
accounting standard initially adopted or a revision to an existing
accounting standard requires a change in the accounting policy hitherto
in use.
USE OF ESTIMATES
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Although
these estimates are based on management's best knowledge of current
events and actions, uncertainty about these assumptions and estimates
could result in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future period.
1 Accounting Policies
a. Fixed Assets
Fixed assets are recorded at cost (Fair Value) less depreciation.
Assets acquired on lease are not reflected in the accounts and the
lease rent is charged to profit & loss account as accrued.
b. Intangible Assets
All Intangible assets are measured at cost and amortized so as to
reflect the pattern in which the assets economic benefits are consumed.
c. Depreciation
(i) Depreciation on tangible fixed assets has been provided on Straight
Line Method as per the useful life prescribed in Schedule II to the
Companies Act 2013 except in respect of plant and machinery in whose
case the life of the asset has been assessed on technical basis taking
into account the nature of the asset and the operating conditions the
useful life has been taken 20 years.
(ii) In respect of Additions made during the year , Depreciation is
charged on prorata basis from the date of addition.
d. Borrowing Cost
Borrowing cost that are attributable to the acquisition of qualifying
assets are capitalized as part of the such cost till they said assets
put to use. All other borrowing cost are charged to revenue.
e Impairment of Assets
An asset is treated as impaired, when carrying cost of assets exceeds
its recoverable amount. An impairment loss is charged to the Profit &
Loss account in the year in which an asset is identified as impaired.
The impairment loss recognized in prior accounting periods is reversed
if there has been a change in the estimate of the recoverable amount.
f Investments
Long Term Investment are stated at cost/or market price whichever is
lower. Provision for Diminution in value considered other then
"Temporary" in nature. Dividends are accounted for as and when
received.
g Inventories
The Company values its Raw Material at cost on FIFO basis. Finished
goods are valued at cost or net realizable value whichever is lower and
other items at cost.
h Revenue Recognition
(a) Revenue from operation includes sale of goods and processing
receipts Revenues recognized only when risk and rewards incidental to
ownership are transferred to customers.
(b) Revenue in respect of Insurance / Other claims, interest Commission
etc. is recognized only when it is reasonably certain that ultimate
collection will be made.
I Foreign Currency Transaction
Foreign currency liabilities in respect of fixed assets restated at the
rates ruling at the year end. Any material exchange difference arising
on such transaction are adjusted in the Cost of Assets.
j Retirement and Employee Benefits
a. Defined Contribution Plan Company's Contribution paid / payable
during the year to Provident Fund ,ESIC and Labour welfare fund are
charged to Profit and Loss Account There are no other obligation other
than the contribution payable to the respective authorities.
b. Defined Benefit Plan Company's liabilities towards gratuity are
determined on the basis of simple calculation as per the Gratuity Act
and Labour Act only. Leave Encashment are determined on the basis of
simple calculation.
k Income Taxes
a. Tax liabilities of the Company is estimated considering the
provisions of Income Tax Act, 1961.
b. Deferred Tax is recognized subject to the tax consideration of
prudence on timing difference, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent period.
I Provisions & Contingent Liabilities
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
m Contingencies and event occurring after the Balance Sheet date All
the contingencies and event occurring after the balance sheet date
which have a material effect on the financial position of the company
are considered for preparing the financial statements.
n Lease Rent
The payments of lease rent taken on leave and license basis are
recognized as expenditure in the profit and loss account on a straight
line basis,
o Segment Reporting
The company identifies primary business segment based on the different
risks and returns, the organization structure and the internal
reporting systems The operating segments are the segments which
separate financial information as available and for which operatives
Profit/ Loss amount are evaluated regularly by the board of directors
in deciding how to allocate resources and in assessing performance. The
accounting policies adopted for segment reporting are in line with the
accounting policies of the company. Segment revenue, segment results ,
segment assets and segment liabilities have been identified to segment
on the basis of their relationship to the operating activities of the
segment. Inter segment revenues is accounted on the basis of
transactions which are primary determined based on market/ fair value
factor. Revenue expenses , assets and liabilities which relates to the
company as a whole are not allocable to segment in reasonable basis
have been included under "Unallocated revenue/results/assets/
liabilities".
p Cash Flow Statement
Cash flows are reported using indirect method, where by profit /(loss)
before extraordinary items and tax is adjusted for the effects of
transaction of non-cash nature and any deferrals or accruals of past of
future cash receipts or payment. The cash flows from operating,
investing and financing activities of the company are segregated based
on the available information.
Mar 31, 2014
A Fixed Assets
Fixed assets are recorded at cost (Fair Value) less depreciation.
Assets acquired on lease are not reflected in the accounts and the
lease rent is charged to profit & loss account as accrued.
b Intangible Assets
All Intangible assets are measured at cost and amortized so as to
reflect the pattern in which the assets economic benefits are consumed.
c Depreciation
Depreciation is provided on fixed assets at straight line method in
accordance with provision of schedule XIV of the Companies Act, 1956 &
amendment there to.
d Borrowing Cost
Borrowing cost that are attributable to the acquisition of qualifying
assets are capitalised as part of the such cost till the said assets
put to use. All other borrowing cost are charged to revenue.
e Impairment of Assets
An asset is treated as impaired, when carrying cost of assets exceeds
its recoverable amount. An impair- ment loss is charged to the Profit &
Loss account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting periods is reversed
if there has been a change in the estimate of the recoverable amount.
f Investments
Long Term Investment are stated at cost/or market price whichever is
lower. Provision for Diminution in value considered other then
"Temporary" in nature. Dividends are accounted for as and when
received.
g Inventories
The Company values its Raw Material at cost on FIFO basis. Finished
goods are valued at cost or net realisable value whichever is lower and
other items at cost.
h Revenue Recognition
(a) Revenue from operation includes Sale of goods and processing
receipts Revenues recognised only when risk and rewards incidental to
ownership are transfered to customers.
(b) Revenue in respect of Insurance/Other claims,interest Commission
etc. is recognised only when it is reasonably certain that ultimate
collection will be made.
i Foreign Currency Transaction
Foreign currency liabilities in respect of fixed assets restated at the
rates ruling at the year end. Any material exchange difference arising
on such transaction are adjusted in the Cost of Assets.
j Retirement and Employee Benefits
a. Defined Contribution Plan Company''s Contribution paid/payable
during the year to Provident Fund ,ESIC and Labour welfare fund are
charged to Profit and Loss Account .There are no other obligation other
than the contribution payable to the respective authorities.
b. Defined Benefit Plan Company''s liabilities towards gratuity are
determined on the basis of simple calcula- tion as per the Gratuity Act
and Labour Act only. Leave Encashment are determined on the basis of
simple calculation.
I Income Taxes
a. Tax liabilities of the Company is estimated considering the
provisions of Income Tax Act, 1961.
b. Deferred Tax is recognised subject to the tax consideration of
prudence on timing difference, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent period.
m Provisions & Contingent Liabilities
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2013
A Use of Estimates
The preparation of the financial statements in conformity with GAAP
requires management to make esti- mates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Although
these estimates are based on management''s best knowledge of current
events and actions, uncertainty about these assumptions and estimates
could result in the out- comes requiring a material adjustment to the
carrying amounts of assets or liabilities in future period.
b Fixed Assets
Fixed Assets are stated at cost less depreciation. Cost includes cost
of acquisition, installation charges and all costs incidental thereto.
c Intangible Assets
All Intangible Assets are measured at cost and amortized so as to
reflect the pattern in which the assets economic benefits are consumed.
d Depreciation
Depreciation is provided on straight line method as per the provision
of the Companies Act, 1956. e Borrowing Cost
Borrowing cost ahat are attributable to the acquisition of the
qualifying assets are capitalised as part of the such cost till the
said assets put to use. All other borrowing cost are charged to
revenue. f Impairment of Assets
An Assets is trated as impaired when carrying cost of Assets exceeds
its recoverable amount. An impairment loss is charged to the Profit &
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in Prior period is reversed if there has
been a change in the estimate of the recoverable amount.
g Investments
Investments are stated at cost or market price whichever is lower.
Dividend is accounted for as and when received.
h Inventories
The inventory of stores are valued at cost on FIFO basis. The finished
goods, stock in process and molasses are valued at lower of producton
cost or net realisable value as valued and certified by the Management.
I Reven ue Recog n ition
I) Sales are recognised on passing of property and after adjusting
rebates and claims.
II) Revenue in respect of interest etc. is recognised only when it is
reasonably certain that the same will ultimately realised
j Foreign Currency Transaction
Foreign Currency liabilities in respect of fixed assets restated at the
rates ruiling at the year end. Any material exchange differencearising
on such transactionsare adjusted in the cost of the assets.
k Retirement and Employee Benefits
a. Defined Contibution Plan:
Company''s contribution paid/payable during the year to Provident Fund.
ESIC and Labour Welfare Fund are charged to Profit & Loss Account.
There are not other obligations other than the contribution payable to
the respective authorities.
b. Defined Benefit Plan:
Company''s liabilities towards gratuity are determined on the basis of
simple calculation as per the Gratuity Act and Labour Act.
I Income Taxes
a) Tax liabilities of the Company is provided considering the
provisions of Income Tax Act.1961.
b) Deferred Tax is recognised subject to the tax cosideration of
prudence on timing difference, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent period.
m Provisions & Contingent Liabilities
Provision involving substantial degree of estimation in deassurement
are recoginsed when there is a present obligation as are sesult of past
events and it is probable that there will be outflow of resources.
Contingent liabilities are not recognised but are disclosed in notes.
Contingent assets are neither recognised nor disclosed in the Financial
Statements.
under the Gratuity Act.The company has not determined the liability as
per revised AS-15 which was mandatory we. f.01.04.2007. However,
additional liabilities .if aivj.wV, be provided later on.The quantum of
additional liability at present is unascerta/nab/e,
ii) As the company has not seperately invested any of its liability of
gratuity in any specific govt, bonds/ securities, hence the changes in
assets, if any, have also not been provided / adjusted.
iii) Disclosures as required by Revised AS-15 have also not been given
in view of notes (I) and (ii) above.
iv) Provision has not been made for leave encashment ben efits accrued
to the employees. The same is accounted for on cash basis.least equal
to the amount stated in the Balance Sheet and provision for all known
liabilityhave been made and not in excess of the amount reasonably
necessary.
Mar 31, 2012
A Use of Estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Although
these estimates are based on management's best knowledge of current
events and actions' uncertainty about these assumptions and estimates
could result in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future period.
b Fixed Assets
Fixed Assets are stated at cost less depreciation. Cost includes cost
of acquisition' installation charges and all costs incidental thereto'
c Intangible Assets
All Intangible Assets are measured at cost and amortized so as to
reflect the pattern in which the assets economic benefits are consumed.
d Depreciation
Depreciation is provided on straight line method as per the provision
of the Companies Act' 1956 and on Plant & Machinery trating it as a
continuous process plant.
e Borrowing Cost
Borrowing cost ahat are attributable to the acquisition of the
qualifying assets are capitalised as part of the such cost till the
said assets put to use. All other borrowing cost are charged to
revenue.
f Impairment of Assets
An Assets is trated as impaired when carrying cost of Assets exceeds
its recoverable amount.
An impairment loss is charged to the Profit & Loss Account in the year
in which an asset is dentified as impaired. The impairment loss
recognised in Prior period is reversed if there has been a change in
the estimate of the recoverable amount.
g Investments
Investments are stated at cost or market price whichever is lower.
Dividend is accounted for as and when received' h Inventories
The Inventory of stores are valued at cost on FIFO basis. The finished
goods' stock in process and molasses are valued at lower of producton
cost(including interest on. Term Loan) or net realisable value as value
and certified by the Management.
I Revenue Recognition
i) Sales are recognised on passing of property and after adjusting
rebates and claims.
ii) Revenue in respect of interest etc. is recognised only when it is
reasonably certain that the ultimate collection will be made.
j Foreign Currency Transaction
Foreign Currency liabilities in respect of fixed assets restated at the
rates ruiling at the year end. Any material exchange difference arising
on such transactions are adjusted in the cost of the assets' k
Retirement and Employee Benefits
a. Defined Contriibution Plan:
Company's contribution paid/payable during the year to Provident Fund.
ESIC and Labour Welfare Fund are charged to Profit & Loss Account.
There are not other obligations other than the contribution payable to
the respective authorities.
b. Defined Banefit Plan:
Company's liabilities towards gratuity are determined on the basis of
simple calculation as per the Gratuity Act and Labour Act. Only. Leave
encashment are accounted on payment basis.
1 Income Taxes
a) Tax liabilities of the Company is estimated considering the
provisions of Income Tax Act.1961.
b) Deferred Tax is recognised subject to the tax cosideration of
prudence on timing difference' being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent period.
m Provisions & Contingent Liabilities
Provision involving substantial degree of estimation in deassurement
are recoginsed when there is a present obligation as are sesult of past
events and it is probable that there will be outflow of resources.
Contingent liabilities are not recognised but are disclosed in notes.
Contingent assets are neither recognised nor disclosed in the Financial
Statements.
Mar 31, 2010
1) GENERAL ACCOUNTING PRINCIPAL :-
The financial statement are prepared under historical cost conventions
on accrual basis and are in accordance with the requirements of the
Companies Act, 1956 and generally complying with the mandatory
accounting standards in force. Various accounting policies are applied
and followed consistently except as otherwise stated.
2) FIXED ASSETS AND DEPRECIATION :-
Fixed assets are stated at cost less depreciation. Cost includes cost
of acquisition, installation charges and all costs incidental thereto.
Depreciation is provided on straight line method as per the provision
of the Companies Act, 1956 and on Plant & Machinery treating it as a
continuous process plant.
3) INTANGIBLE ASSETS:-
All Intangible Assets are measured at cost and amortized so as to
reflect the pattern in which the assets economic benefits are consumed.
4) INVENTORIES :-
The inventory of stores are valued at cost on FIFO basis. The finished
goods, stock in process and molasses are valued at lower of production
cost (including Interest on Term Loan) or net realisable value, as
valued and certified by the Management.
5) SALES :-
Sales are recognized on passing of property and after adjusting rebate
and claims.
6) EXCISE DUTY:-
Excise duty in respect of sugar produced is accounted at the time of
removal from factory.
7) EMPLOYEES BENEFITS
a. Defined Contribution Plan:
Companys contribution paid/payable during the year to Provident Fund,
ESIC and Labour Welfare Fund are charged to Profit & Loss Account.
There are no other obligations other than the contribution payable to
the respective authorities.
b. Defined Benefit Plan .
Companys liabilities towards gratuity are determined on the basis of
simple calculation as per the Gratuity Act and Labour Act only. Leave
encashment are accounted on payment basis.
8) PRELIMINARY EXPENSES :-
Preliminary, share issue and cane development expenses are amortised
over a period of 10 years.
9) TAXATION :-
a) Tax liabilities of the Company is estimated considering the
provisions of Income Tax Act, 1961.
b) Deferred Tax is recognised subject to the tax consideration of
prudence on timing difference, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent period
10) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :-
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as are result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities are not recognised but are disclosed in notes.
Contingent assets are neither recognised nor disclosed in the Financial
State- ments.
11) BORROWING COST :-
Borrowing cost that are attributable to the acquisition of qualifying
assets are capitalised as part of the such cost till the said assets
put to use. All other borrowing cost are charged to revenue.
12) IMPAIRMENT OF ASSETS :-
An Assets is treated as impaired when carrying cost of Assets exceeds
its recoverable amount. An impairment loss is charged to the Profit &
Loss Account in the year in which an asset is identified as impaired.
The Impairment loss recognised in Prior period is reversed if there has
been a change in the estimate of the recoverable amount.
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