Mar 31, 2015
1) System of Accounting:
1) The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis.
ii) The financial statements have been prepared in all material
respects with Accounting Standards as relevant and notified by the
Central Government.
iii) The financial statements are prepared on historical cost basis and
as a going concern.
2) Revenue recognition:
i) Sale of goods is recognized at the point of dispatch of goods to
customers. Gross sale is inclusive of Excise Duty when applicable and
is net of returns and Value Added Tax
ii) Income from guest accommodation in respect of hotel division is
recognized on day to day basis after the guests checks in. Discounts,
if any, in this regard are accounted upon final conclusion of the bill
with the guests. Any advance received in respect of the same is treated
as a liability pending finalization of bill/provision of services.
Income from sale of Food & Beverages is recognized at the point of
serving of these items to the guests. The income stated is inclusive of
luxury tax, service charge and VAT but net of complimentary and
discounts.
iii) Dividends from investment are recognized as income of the year in
which the same are declared by the investee company
3) Tangible Fixed Assets and Depreciation:
Tangible Fixed Assets acquired by the company are reported at
acquisition value with revaluated amount of Rs. 19,56,71,129 as
approved by Valuer on 31/03/2002, with deductions for accumulated
depreciation and impairment losses, if any.
The acquisition cost for this purpose includes the purchase price (net
of duties and taxes which are recoverable in future) and expenses
directly attributable to the asset to bring it to the site and in the
working condition for its intended use.
Where the construction or development of any such asset requiring time
to set up for its intended use, is funded by borrowings, the
corresponding borrowing costs are capitalized up to the date when the
asset is ready for its intended use.
The interest during construction period, indirect project expenditure
and trial run expenditure (net of trial run income) incurred in respect
of projects under implementation are capitalized to the asset created.
Depreciation is provided in accordance with Schedule II of the
Companies Act, 2013 in respect of the remaining useful life of the
asset as far as the existing assets are concerned. In respect of
additions, depreciation is provided on the basis of the useful life of
the assets as prescribed by Schedule II of Companies Act, 2013.
During the year the company had carried out technical evaluation of the
useful life of the existing assets and applied the method of
depreciation as prescribed by Schedule II of the Companies Act, 2013.
The adjustment as a result of the re- computation is made to the
opening balance of profit and loss account.
4) Investments:
Investments are stated at cost.
5) Inventories:
a) Finished goods are valued at lower of cost or Net Realizable Value.
Cost for this purpose is arrived at on Absorption costing basis. Excise
duty is included in valuation of finished goods.
b) Stock in process/plant is valued at cost.
c) Stock of raw materials, Stores and Spares and packing materials are
valued at cost. Cost for this purpose, does not include duties/taxes
that are recoverable in future.
d) Food & Beverages:
1) Groceries: Groceries is valued at cost arrived at on weighted
average basis.
2) Beverages: Valued at cost.
6) Staff Benefits:
a) The Company's contribution to Provident Fund and pension fund are
considered as defined contribution plans and are charged as an expense
as they fall due based on the amount of contribution required to be
made.
b) Gratuity is accounted for on actual payment basis. No provision for
gratuity on actuarial basis is made and hence it's effect on profit or
loss can not be ascertained.
7) Research and Development:
Revenue expenditure on research and development is charged to Statement
of profit and loss in the year in which is incurred. Capital
expenditure on research and development is treated at par with fixed
assets and depreciated as such.
8) Deferred Taxation:
Accounting treatment in respect of deferred taxation is in accordance
with Accounting Standard 22 - "Accounting for Taxes on Income" issued
by the Institute of Charted Accountants of India.
9) Minimum Alternate Tax:
Minimum Alternate Tax paid in accordance with tax laws, which give rise
to the future economic benefits in the form of adjustment to future
income tax liability, is considered as as asset in the balance sheet
when it is probable that future economic benefit associated with it
will flow to the company and the asset can be measured reliably.
10) Borrowing Costs:
Costs in respect of borrowings for the purpose of expansion/additional
fixed investments including R & D project are capitalized to such
investments.
Borrowing costs relating to period after the commencement of operations
of the project are charged to revenue.
12) Foreign Currency Transactions:
Foreign Exchange Transactions are recorded at pre-determined standard
exchange rates which are reviewed periodically. Gains or losses arising
out of such standard rates and also on realization settlement are
accounted for accordingly.
13) Impairment of Assets:
The carrying amounts of assets are reviewed at each Balance Sheet date,
if there is any indication of impairment based on internal/external
factors. An impairment loss will be recognized wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the asset's net selling price and
value in use. In assessing the value in use, the estimated future cash
flows are discounted to the present value using the weighted average
cost of capital. In carrying out such exercise, due effect is given to
the requirements of Schedule II to Companies Act, 2013.
Mar 31, 2014
2.1 Basis of acoounting and preperation of financiai statem ents
The company maintains Hs accounts on accrue I basis :Ql losing
his;orical cost c6hventicn, in accordance with the Indian Generally
Accepted Accounting Principles. Management makes estimates and
technical aid ocherassumptions regarding tie amounts of incomes and
axpenses, assets and liabilities and disclosure ot contingencies, in
accordance with Generally Accepted Accoutring Principles in India in
the preparation df the financial statements. Difference between the
actual results and estimates are retogn-zed in toe per :uU in wl nvi
111 icydredtiLu mined.
2.2 Fixed Assets
E and and i pasphnld t and, Fartnry F.l Hiring, Hntel Building and Plant
A Marhnpry havp been shown as revalued by the approved Valuer on
3iy03/20'}2 thereby increase in such assets In Gross Block bv Rs,
19,56,71,12& Other fixed assets are recorded at cost of dLLiursitiun,
ntrL uf nuevat. and VAT crtdiL or vusL uf LuristrucLivri urdudiiig
urec.ly attributable costs reduced by accumulated deprecation. Land on
leasehod basis is included in the schedule of fixed assets.
2.3 Depredation
r. Depreciation nas been changed on the Sbarght Line Method in
accordance with tie rates s pec if I sd un de r 5c hedul e XIV tc the
Core pa n i e 5 Act, 19 5G, fi. Depreciation on assets added during the
year has been provided on pry-rata basis, iii Depreciation on
revaluation amount of fired assets is adjusted hy transferring me eq ui
va I e n t amou nt Fro m Reva I uat ion Re serve Accou n t.
2.4 Inventories
Raw Material, Work in Process, stores and spares, food and beverages
are valued at cost u n FI FO me thud Fi nished Goods an d Goods or i
Con sig n merit a re va iu tad at oust u r rel i a til e value
wiirheveris lower Wastage and scrap are valued at Reaii7ahlp Market
Valine
2.5 Rcvenua recognition Sale of goods
Sales are accounted net ot returns and discounts and is accounted at
the point of despatch of materia, to I he customers. In the Ho;el
Division receipts from mom rent are net of discount but inclusive o"
luxury tax ant service charge. In case of food and beverac e sal es a re
acco un ted net of comp I i nrenta ry a nd d i sco u nt but i nc I usi
ve of serv ice charge and vat.
2.6 Other ircome
Interest income is accounted oil actmed basis. Dividend income is
accounted for when through to receive estabilshment.
2.7 Cash and cash equivalents (for purposes of Cash flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition) liiylily I qurd
inveatiTltifits hint are readily cgiivertfbie iiituknoWn amounts of
cash and which a re subject to insignificant risk of changes in value.
2.8 Cash flow statement
Cash flows are reported using the iincirect method, whereby prefit j
(loss) before extraordinary item sand tax is adjusted for the effects
of transactions of non-cash nature cm uJ tii iy defend s ur dcuudlij of
j/astui fuLun: cdth iooui|Xs ui payments. The cash huwb from operating,
investing and financing activities of the Company are segregated based
a n the avai la b le i nform ati o n.
2.9 Forei gn cu rren cy t ransa ttio ns and Iran static rs There were
no foreign, currency transactions,
2.10 Investments InvesLruenLs are sLa.ed at cost.
2.11 Empoloyee Reterirment benefits
The Company's contribution to provident fund and pension fund are
considemd as defined contribution plans and are charged as an expense
as they fall due based on tie amount of contribution required :o be
made.
Defined benefit plans
Gratu i ty i s eecou nted Fo r o n net ua I pe ym ;n c b»si s. No pr)v
I sio n for gr-etu ty on act ua ri al basis is made and hence its
effect on profit or oss cannot be ascertained.
2.12 Borrowing costs
Borrowing costs include interest, amortization of ancillary costs
ncurred. Costs in connecti on wlth the sorrow] ng of fy nd s to rh e ex
te nt not di redly re la ted to the acqu i sitio n of qualifying
asictssre changed tothS Statementof Profit and Loss over the tenure
oftTie loan. Borrowing costs, ailocatec to and utilized for qualifying
assets, pertaining to tie penod from commencement of activities relating
to construction / devebpment of tie qualifying asset upto the date cr
capitalization of such asset is added to the cost of tie assets.
2.13 Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organzation end management
structure. The operating segments 9re the segment for which separate
financial information is available and for which operating profit/loss
amounts are evaluated regularly oy the executive Management in deed mg
how to allocate resources and in assessing pc-form a nee.
The accounting polities adopted for segment reporting are in line with
the accounting policies or the company, segment revenue, segment
expenses, segment assets ano segment liabilities have been identified
to segments on me basis of their relationship to the operaticg
activities of the segment. Revenue, expenses, assets and liabiltles
which relate to the Company as a whole and are not allocable tc
segments on reasonable basis have been included under "unallocated
revenue/ expenses / assets / iiabilrJes,1'
2-1A Taxes on Income Current Tax
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Deferred Tax
Deferred tax is calculated at the rates and laws that have been enacted
or substantially enacted as of the balance sheet date and is recognized
on tming differences that originate in one period and are capable of
reversal in one or more subsequent period, Deferred tax assets, subject
to cons ideation ot prudence are recognized and carried forward only to
the extent that they can be realized.
Minimum Alternate Tax (MAT)
Minimum alternate "ax paid in accordance with the tax laws, whicn give
rise to the future economic benef ts in theform of ad justment to
future income tax IiabiHty, is considered as an asset in the balance
sheet when it is probable that future economic benefit associated with
it will howto the company and the asset can be measured reliably.
2.15 Etii'niiigsper shafts
Bade earning per share is computer by dividing the profi: / (loss)
after tax (including tie post tax effect of extraordinary hems, if any)
by the weighted average number of equ ty shares outstanding during the
year. Diluted earnings per she re is computed by dviding the profit i
(loss) aftertax (including the post tax effect of extraordinary items,
if any) as adjusted For dividend, interest znd othe' charges to expense
or income rela:mg to tie delusive potential equity shares, by the
weighted average numbe- of equity shares considered or deriving basic
earnings [ier share and the weighted average number of equity shares
which could have been Issued on the conversion of alt delusive
potential equity shares.
2.16 Research ard development expenses
Revenue expenditure pertaining to jesearct is charged to the Statement
of Pm'it and Loss, Development costs of products are also cha-ged to the
Statement of Profit and Loss unless a product's technological
feasibility has been established, in which case such expenditure is
capita Sized. The amount capitalized comprises expenditure that can oe
directly attributed or etlocated on a reesanpbte and consistent bosis-
to creating, producing end 'rakinq the asset ready for its intended use.
Fixed assets utilized for research and development are capitalized and
depreciated in accordance with the policies stated for Tangible Fixed
Assets a ad Intangible Assets.
2.17 Provisions and con ting encies
A p-oviiion is recognised when the Company he; e present obligation e;
a result of pest events and it is probable that an outflow of resources
will be required to settle tie obligation in respect of which a
reliable estimate can be made. Provisions (excluding reti'ement
benefits) are not discounted to their present value anc are determined
based on the bes: estimate required to sette the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted bo reflect the current best estimates. Contingent I i
abilities a re disci csed in the Notes.
2.18 In sura nee claims
Insurance claims are accounted for on the basis of claims admitted /
expected to oe admitted and to the extent that there is no uncertainty
in receiving the claims.
2.19 Finrvicetax tnpuh rmdit
5erv ice ta x in put cred ibis a ccou nted 'or in the books fri the
period in wh ich the unde rlyi n g service received is accounted and
when there is no cncertairty in availing / utilizing tie credits.
Mar 31, 2012
1.1 Basis of accounting and preparation of financial statements
The company maintains its accounts on accrual basis following
historical cost convention, in accordance with the Indian Generally
Accepted Accounting Principles. Management makes estimates and technical
and other assumptions regarding the amounts of incomes and expenses,
assets and liabilities and disclosure of contingencies, in accordance
with Generally Accepted Accounting Principles in India in the
preparation of the financial statements. Difference between the actual
results and estimates are recognized in the period in which they are
determined.
1.2 During the year ended 31st March, 2012 the revised Schedule VI
notified under the Companies Act, 1956 has become applicable to the
company, for preparation and presentation of its financial statements.
The adoption of revised schedule does not impact recognition and
measurement principles followed for the preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The company has also
reclassified the previous year figu es in accordance with the
requirements applicable in the current year.
1.3 Fixed Assets
Land and Leasehold Land, Factory Building, Hotel Building and Plant &
Machinery have been shown as revalued by the approved Value on
31/03/2002 thereby increase in such assets in Gross Block by Rs.
19,56,71,129. Other fixed assets are recorded at cost of acquisition,
net of modal and VAT credit or cost of construction including directly
attributable costs reduced by accumulated depreciation Land on
leasehold basis is included in the schedule of fixed assets.
1.4 Depreciation
i Depreciation has been charged on the Straight Line Method in
accordance with the rates specified under Schedule XTV to the Companies
Act, 1956.
ii Depreciation on assets added during the year has been provided on
pro-rata basis.
iii Depreciation on revaluation amount of fixed assets is adjusted by
transferring the equivalent amount
from Revaluation Reserve Account.
1.5 Inventories
Raw Material, Work in Process, stores and spares, food and beverages
are valaed at cost on FIFO method. Finished Goous and Goods on
Consignment are valued at cost or reusable value whichever is lower.
Wastage and scrap are valued at Realisable Market Value.
1.6 Revenue recognition Sale of goods
Sales are accounted net of returns and discounts and is accounted at
the point of despatch of material to the customers. In the Hotel
Division receipts from room rent are net of disocunt but inclusive of
luxury tax and service charge. In case of food and beverage sales are
accounted net of complimetary and discount but inclusive of service
charge and vat.
1.7 Other income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
1.8 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
1.9 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
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.
1.10 Foreign currency transactions and translations
There were no foreign currency transactions.
1.11 Investments Investments are stated at cost.
1.12 Employee/Retirement benefits Defined contribution plans
The Company's contribution to provident fund and pension fund are
considered as defined contribution plans and are charged as an
expense as they fall due based on the amount of contribution
required to be made.
Defined benefit plans
Gratuity is accounted for on actual payment basis. No provision for
gratuity on acturial basis is made
and hence its effect on profit or loss cannot be ascertianed.
1.13 Borrowing costs
Borrowing costs include interest, amortization of ancillary costs
incurred. Costs in connection with the borrowing of funds to the extent
not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the loan
Borrowing costs, allocated to and utilized for qualifying assets,
pertaining to the period from commencement of activities relating to
construction / development of the qualifying asset upto the date of
capitalization of such asset is added to the cost of the assets.
1.14 Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organization and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive Management
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
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment. Revenue, expenses, assets and liabilities
which relate to the Company as a whole and are not allocable to
segments on reasonable basis have been included under "unallocated
revenue / expenses / assets / liabilities".
1.15 Taxes on Income Current Tax
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Deferred Tax
Deferred tax is calculated at the rates and laws that have been enacted
or substantially enacted as of the balance sheet date and is recognized
on timing differences that originate in one period and are capable
of reversal in one or more subsequent period. Deferred tax assets,
subject to consideration of prudence are recognised and carried forward
only to the extent that they can be realised.
Minimum Alternate Tax (MAT) Minimum alternate Tax paid in accordance
with the tax laws, which give rise to the future economic benefits in
the form of adjustment to future incoem tax liability, is considered as
an asset in the balance sheet when it is probable that future economic
benefit associated with it will flow to the company and the asset can
be measured reliably.
1.16 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post fax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares.
1.17 Research and development expenses
Revenue expenditure pertaining to research is charged to the Statement
of Profit and Loss. Development costs of products are also charged to
the Statement of Profit and Loss unless a product's technological
feasibility has been established, in which case such expenditure is
capitalised. The amount capitalised comprises expenditure that can be
directly attributed or allocated on a reasonable and consistent basis
to creating, producing and making the asset ready for its intended use.
Fixed assets utilised for research and development are capitalised and
depreciated in accordance with the policies stated for Tangible Fixed
Assets and Intangible Assets.
1.18 Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes.
1.19 Insurance claims
Insurance claims are accounted for on the basis of claims admitted /
expected to be admitted and to the extent that there is no uncertainty
in receiving the claims.
1.20 Service tax input credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
uncertainty in availing / utilising the credits.
Mar 31, 2010
A) The accounts are prepared, based on historical cost and on the
asis of a going concern with revenues considered and. expenses
accounted wherever possible on their accrual, as modified by
revaluation of certain assets, viz Land and Leasehold land, Factory
Building," Hotel Building and Plant & Machinery.
b) Fixed Assets:
Land & Leasehold Land, Factory Building, Hotel Building and Plant and
Machinery have been shown as revalued by the approved valuer on
31.03.2002 thereby increase in such assets in gross block Is by Rs.
19,56,71,129. Other Fixed Assets are recorded at post of acquisition,
net of modvat credit or cost of construction including directly
attributable cost as reduced by accumulated depreciation. Land on Lease
basis is included in the schedule of Fixed Assets.
c) Depreciation:
i) Depreciation has been charged on the Straight Line Method in
accordance with the rates
specified under Schedule XIV to the Companies Act, 1956. i i)
Depreciation on assets added during the year has been provided on
pro-rata basis. iii) Depreciation on revaluation amount of fixed
assets is adjusted by transferring the
equivalent amount from Revaluation Reserve Account.
d) Inventory Valuation:
i) Raw Material, Work in Process
Stores & Spares : At Cost
ii) Food & Beverages : At Cost
iii) Finished Goods & : At Cost or Realisable
Consignment Goods Value
whichever is Lower
iv) Wastage & Scrap : At Market Realisable Value
e) Sales:
Sales are accounted net of returns and discounts and is accounted at
the point of despatch of material to customers. In the Hotel Division
Receipts from Room Rent are net of discount but inclusive of luxury tax
and service charge. In case of Food and Beverage sales are accounted
net of complimentary and discount but inclusive of service charge and
VAT.
f) Retirement Benefits:
Gratuity is accounted for on actual payment basis. No provision for
gratuity on actuarial basis is made and hence its effect on profit or
loss cannot be ascertained. Retirement Benefit in the form of Provident
Fund and Pension Schemes are accounted for on accrual basis and charged
to Profit & Loss Account of the year. Leave Encashable on retirement is
being accounted for as and when it is due for payment.
g) Investment: Investments are stated at cost
h) Taxes On Income
Deferred Tax:
Deferred tax calculated at the rates and laws that have been enacted or
substantially enacted as of the balance sheet date is recognized on
timing differences that originate in one period and are capable of
reversal in one or more subsequent period. Deferred Tax assets, subject
to consideration of prudence are recognized and carried forward only to
the extent that they can be realized.
Minimum Alternate Tax (MAT)
Minimum Alternate Tax (MAT) paid in accordance to the tax laws, which
give rise to the future economic benefits in the form of adjustment of
future income tax liability, is considered as an asset in the balance
sheet when it is probable that the future economic benefit associated
with it will flow to the Company and the asset can be measured
reliably.
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