Mar 31, 2015
A) Basis of Accounting
The Financial Statements are prepared under the historical cost
convention, except stated otherwise, on an accrual basis and in
accordance with generally accepted Accounting principles in India, the
applicable mandatory Accounting Standards as prescribed under Section
133 of the Companies Act, 2013 read with rule 7 of the Companies
(Accounts) Rules, 2014.
The financial statements have been prepared and presented as per the
requirement of Schedule III as mentioned under Companies Act, 2013.
b) Use of Estimates
The preparation of financial statements require judgements, estimate/
estimates and assumptions to be made that affect the reported amount of
assets and liabilities including contingent liabilities on the date of
the financial statements and the reported amount of revenues and
expenses during the reporting period. Difference between actual results
and estimates are recognized in the period in which the results are
known / materialized.
c) Fixed Assets Tangible Fixed Assets
i. Fixed Assets, other than those which have been revalued, are stated
at their original cost which includes expenditure incurred in the
acquisition and construction/installation and other related expenses.
ii. Revalued assets are stated at the values determined on valuation
Intangible Fixed Assets
Intangible Assets are at cost on initial recognition, after which the
same are stated at cost less accumulated amortization and accumulated
impairment loss, if any .
d) Depreciation & Amortization
i) Depreciation on tangible fixed assets provided on straight line
method at the rates determined based on the useful lives of respective
assets as prescribed in the Schedule II of the Companies Act. 2013.
ii) Depreciation for assets purchased / sold during the year is
proportionately charged
iii) On amount added on revolution, depreciation is provided on
straight line method at the rates determined based on the useful lives
of respective assets as prescribed in the Schedule II of the Companies
Act.
e) Investments
i. Investments, which are readily realizable and intended to be held
for not more than one year from the date on which such investments are
made are classified as current investments. All other investments are
classified as Long term Investments.
ii. On initial recognition, all investments are measured at cost. The
cost comprises purchase price and directly attributable acquisition
charges such as brokerage, fees and duties.
iii Long term investments are stated at cost. Provision for diminution
is made if the decline in value, in the opinion of the management, is
other than temporary.
f) Inventories
Inventories are valued as follows :-
Stores, Spares & Others are valued at cost. Finished Goods are valued
at lower of cost or market value. Stock in process of sugar and
molasses are valued at lower of estimated cost or realizable value and
planted trees having maturity of 18 months are valued at estimated
realizable value.
g) Employee Benefits
i. Employee benefits of short term nature are recognized as expense as
and when it accrues. Employee benefit of long term nature are
recognized as expense based on actuarial valuation using projected unit
credit method. ii Post employment benefits in the nature of defined
contribution plans are recognized as expense as and when it accrues and
that in the nature of defined benefit plans are recognized as expenses
based on actuarial valuation using projected unit credit method.
Actuarial gains or losses are recognized immediately in the statement
of Profit and Loss Account.
h) Foreign Currency Transactions
i. Transactions in foreign currencies are recorded at the rate of
exchange prevailing on the date of transaction, year end balance of
foreign currency transactions is translated at the year end rates.
ii. All exchange differences are recognized as income or expenses in
the period in which they arise
i) Recognition of Revenue and Expenses
All revenue and expenses are accounted for on accrual basis except as
otherwise stated. Gross Sales are inclusive of excise duty and net of
returns, claims and discount etc. Dividend income is recognized when
right to receive is established.
j) Taxation
Provision for current Income Tax is made in accordance with the Income
Tax Act, 1961. The deferred tax charge or credit is recognized using
substantively enacted tax rates subject to consideration of prudence in
timing differences between book and tax profits. Deferred tax Assets
are recognized only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred assets can be realized.
k) Impairment
An asset is treated as impaired when the carrying cost of the assets
exceeds its recoverable value being higher of value in use and net
selling price. Value in use is computed at net present value of cash
flow expected over the balance useful lives of the assets. An
impairment loss is recognized as an expense in the statement of Profit
& Loss in the year in which an asset is identified as impaired. The
impairment loss recognized in earlier accounting period is reversed if
there has been an improvement in recoverable amount.
l) Borrowing Costs
General and specific borrowing costs attributable to the acquisition,
construction or installation of qualifying capital assets till the date
of commencement of commercial use of the assets are capitalized. Other
borrowing costs are recognized as an expense in the period in which
they are incurred
m) Provisions and Contingent Liabilities
A provision is recognized if, as a result of past event, the company
has a present legal obligation that is reasonably estimable, and it is
probable that an outflow of economic benefits required to settle the
obligation at the reporting date. Where no reliable estimate can be
made, a disclosure is made as Contingent Liabilities. A disclosure for
contingent liability is also made when there is a possible obligation
or a present obligation that may but probably will not require an
outflow of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of out flow of resources
is remote, no provision or disclosure is made.
Earning Per Share
Basic earnings per share is calculated by dividing the net profit or
Loss for the period attributable to equity shareholders.
l) Employees Benefit
Contribution of Employer's Share to Employee's Provident Fund are
worked on accrual basis and charged to Profit & Loss Account. The
Company also provides for gratuity and leave encashment based on
acturial valuation made by an independent actuary as per AS-15.
m) Land on Leases
The company has leased out its land at Ramnagar admeasuring 4.0580
Acres for 99 years for Rs .6553228/ and received lease rent in advance
full payment and adjusted Rs.21143 during the year.
n) Provisions
Provisions are recognized in respect of obligations where, based on the
evidence available, their existence at the Balance Sheet date.
o) Excise Duty, under expenditure, represents payments made/to be made
during the year on goods cleared/to be cleared. Payment of services
where service tax is charged and credit for the same is taken as
accounted net of service tax.
p) The expenses incurred on sugarcane and on trees are accumulated
under the caption "Standing Sugarcane" and "Planted Trees" (excluding
planted trees having maturity of over 18 months) respectively and
charged to statement of Profit & Loss in the year of harvesting.
(a) There has been no change /movements in number of Shares outstanding
at the beginning and at the end of the Reporting period .
(b) The company has only one class of issued shares i.e. Equity Share
having par value of Rs. 10/- per share . Each holder of Equity Shares
is entitled to one vote per share and equal right for dividend . In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the company after payment of preferential
amounts , in proportion to their share holding.
Mar 31, 2014
A) Basis of preparation of Financial Statements
The Financial Statements are prepared in accordance with generally
accepted Accounting Standards in India and the provisions of the
Companies Act, 1956.
b) Basis of Accounting
The accrual basis of accounting is followed unless otherwise stated.
c) Tangible Fixed Assets
Fixed Assets (excluding Revalued Assets) are stated at cost including
cost of installation and other incidental expenses. Assets of Rs.
5,000/- and below have been fully depreciated during the year of
purchase.
d) Depreciation & Amortisation
Depreciation on Fixed Assets, acquired after 31.08.1970, has been
calculated on Straight Line Method under Section 205(2)(b) of the
Companies Act, 1956 while other assets have been depreciated on Written
Down Value Method under Section 205(2)(a) of the said Act.
e) Investments
Investments are stated at cost. Provision for diminution in value of
investment is not made if they are long term in nature. Investments,
which are readily releasable and intended to be held for not more than
one year from the date of investment made, are classified as Current
Investments. All investments other than long term investments are
classified as Current Investments. Current Investments are valued at
lower of Cost or Fair Value.
f) Inventories
Inventories are valued on FIFO basis as under:- i) Stores, Spares &
Others : At cost exclusive of CENVAT receivable ii) Finished Goods : At
lower of cost or market value iii)Stock-in-Process:
-Sugar and Molasses: At lower of estimated cost or realisable value
-Planted Trees, having maturity of above 18 months, are taken at
estimated realisable value.
g) Cash and Bank Balance
Cash and Bank Balance comprises of cash on hand, balances with banks in
current accounts and demand deposits with banks.
h) Foreign ExchangeTransaction
Transactions in foreign currencies are recognised at the prevailing
exchange rates on the transaction dates. Realised gains and losses on
settlement of foreign currency transactions are recognized in the
Profit & Loss Account. Foreign currency monetary items at the year-end
are reported at the year-end exchange rate, and the resultant exchange
difference is recognised in the Profit & Loss Account.
In respect of transactions covered by Forward Exchange Contracts, the
difference between the contract rate and spot rate on the date of
transaction is amortised over the life of contract.
i) Contingent Assets & Liabilities
Contingent Liabilities are shown by way of Notes to the Accounts in
respect of obligations where, based on the evidence available, their
existence at the Balance Sheet date is considered not probable.
Contingent Assets are neither recognised nor disclosed in the financial
statements.
j) Impairment of Assets
Impairment of losses, if any is recognised in accordance with the
accounting standard issued in this regard by the Institute of Chartered
Accountants of India.
k) Segmental Reporting
The company''s operating business are organised and managed as per
location of the client. Common cost is allocated to the cost based on
the Revenue Mix. Unallocated cost is disclosed separately. The company
prepares its segment information in conformity with the accounting
policy adapted for preparing and presenting the financial statement of
the Company as a whole.
l) Earning Per Share
Basic earning per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders. m) Revenue
Recognition Sales are shown inclusive of excise duty and net of
returns. Dividend Income is recognised when right to receive is
established.
n) Employees Benefits
Contribution of Employer''s Share to Employee''s Provident Fund are
worked on accrual basis and charged to Profit & Loss Account. The
Company also provides for gratuity and leave encashment based on
acturial valuation made by an independent actuary as per As-15.
o) Leases
Lease rentals on operating leases are charged on a monthly basis to
Accounts.
Assets taken on Finance Lease have been capitalised during the year of
Agreement and charged off in accordance with the applicable rate of
depreciation.
p) Borrowing cost
Borrowing costs in relation to a qualifying asset and capitalised as
part of the cost of a qualifying asset when it is probable that they
will result in future economic benefits to the enterprise and the costs
can be measured reliably. Other borrowing costs are recognised as an
expense in the period in which they are incurred.
q) Taxation
Provision for tax is made on the taxable income for the year in
accordance with the applicable provisions of the Income Tax Act, 1961.
Deferred tax is recognised subject to consideration of prudence in
respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
r) Provisions
Provisions are recognised in respect of obligations where, based on the
evidence available, their existence at the Balance Sheet date.
s) Excise Duty, under expenditure, represents payments made/to be made
during the year on goods cleared/to be cleared. Payment of services
where service tax is charged and credit for the same is taken as
accounted net of service tax.
t) The expenses incurred on sugarcane and on trees are accumulated
under the caption "Standing Sugarcane" and "Planted Trees" (excluding
planted trees having maturity of over 18 months) respectively and
charged to statement of Profit & Loss in the year of harvesting.
Details of Security
1. Working Capital Term loan from IDBI was secured by Hypothecation of
Stock, Book Debts, Standing Corps, all Moveable Properties and Mortgage
of 2067.21 acres of Company''s Agriculture Land and second charge on
Fixed Assets of Sugar Division and guarantee of its one director,
overdrafts against pledge of Fixed Deposit Receipts.
2. Loan from Sugar Development Fund is secured by charge on specified
assets and guaranteed by a director of the Company.
Terms of Repayment of Secured Term Loans
1. Loan from Sugar development fund for Rs. 287.55 lacs sanctioned on
31-03-1992 to be disbursed in 3 installments upto 31-03-1995. However,
only one instalment of Rs. 132.19 lacs was disbursed. Initially rate of
interest was 9% p.a. and penal interest was 2.5% above normal rate of
interest. The interest rate was later revised to 4.5%. There was a
moratorium of 3 years and Repayment of Principal was to be made in 4
equal annual instalments after expiry of moratorium period and interest
on loan was payable annually. At present amount due on principal
account is Rs.8563117 (Previous Year Rs.8563117) and Rs.23407350.70
(Previous Year Rs.21759260) towards interest. The Company has sent a
proposal to Sugar Development Fund for concession/waiver of interest
which is pending. Inerest on loan of Rs.1648081 for the year (Previous
Year Rs.1554793) has been provided as per agreement.
The Company has defaulted in repayment of loan and interest in respect
of the following :
1. Term Loan from IDBI was to be paid in monthly instalment of Rs.10
lacs. Although the full amount has been paid but the same has not been
paid on due dates either in F.Y 2013-14; 2012-13 and 2011-12 and hence
over and above the interest, compound interest and penalty on principal
amount has been imposed.
2. The loan from Sugar Development Fund of Rs. 132.19 lacs was
repayable in 4 annual instalments by 1999. There is a continuous
default now. Principal amount of Rs. 46,56,883 has been paid and
balance amount due is Rs. 8563117 as on 31-03-2014 (F. Y. 2013-14) and
interest due is Rs.23,407,350.70 as on 31.03.2014.
Mar 31, 2013
A) Basis of preparation of Financial Statements
The financial statements have been prepared in accordance with
generally accepted Accounting Standards in India and the provisions of
the Companies Act, 1956.
b) Basis of Accounting
The Company follows accrual basis of accounting unless otherwise
stated.
c) Tangible Fixed Assets
Fixed Assets (excluding Revalued Assets) are stated at cost including
cost of installation and other incidental expenses. Assets of Rs.5000/-
and below have been fully depreciated during the year of purchase.
d) Depreciation & Amortisation
Depreciation on Fixed Assets acquired after 31.08.1970 has been
calculated on straight line method under Sec. 205(2)(b) of the
Companies Act, 1956 while other assets have been depreciated on Written
Down Value Method under section 205(2)(a) of the said Act.
e) Investments
Investments are stated at cost. Provision for diminution in value of
investment is not made if they are long term in nature.
Investments, which are readily releasable and intended to be held for
not more than one year from the date of investment made are classified
as Current Investments. All investments other than long term
investments are classified as non-current investments. Current
Investments are valued at lower of Cost or Fair Value.
f) Inventories
Inventories are valued on FIFO basis as under:-
i) Stores, Spares & Others : At cost exclusive of CENVAT receivable
ii) Finished Goods : At lower of cost or market value
iii) Stock-in-Process:
-Sugar and Molasses: At lower of estimated cost or realisable value
-Planted Trees, having maturity of above 18 months, are taken at
estimated realisable value.
g) Cash and Cash equivalents
Cash comprises of cash on hand, balances with banks in current accounts
and demand deposits with banks.
h) Foreign ExchangeTransaction
Transactions in foreign currencies are recognized at the prevailing
exchange rates on the transaction dates. Realised gains and losses on
settlement of foreign currency transactions are recognised in the
Profit & Loss Account. Foreign currency monetary items at the year-end
are reported at the year-end exchange rate, and the resultant exchange
difference is recognised in the Profit & Loss Account.
In respect of transactions covered by Forward Exchange Contracts, the
difference between the contract rate and spot rate on the date of
transaction is amortised over the life of contract.
i) Contingent Assets & Liabilities
Contingent Liabilities are shown by way of Notes to the Accounts in
respect of obligations where, based on the evidence available, their
existence at the Balance Sheet date is considered not probable.
Contingent Assets are neither recognised nor disclosed in the financial
statements.
j) Impairment of Assets
Impairment of losses, if any is recognised in accordance with the
accounting standard issued in this regard by the Institute of Chartered
Accountants of India.
k) Segmental Reporting
The company''s operating business are organised and managed as per
location of the client. Common cost is allocated to the cost based on
the Revenue Mix. Unallocated cost is disclosed separately. The company
prepares its segment information in conformity with the accounting
policy adapted for preparing and presenting the financial statement of
the Company as a whole.
I) Earning Per Share
Basic earning per share is calculated by dividing the net profit or
Loss for the period attributable to equity shareholders.
m) Revenue Recognition
Sales are shown inclusive of excise duty and net of returns. Dividend
income is recognised when right to receive is established.
n) Employees Benefits
Contribution of Employer''s Share to Employee''s Provident Fund are
worked on accrual basis and charged to Profit & Loss Account. The
Company also provides for gratuity and leave encashment based on
actuarial valuation made by an independent actuary as per AS-15.
The liability for Gratuity and leave encashment has been provided with
Annual Contribution to the Life Insurance Corporation of India under
its Group Gratuity-cum-Life tosuiawce S>cVevte( Group Leave
Encashment Scheme.
o) Leases
Lease rentals on operating leases are charged on a monthly basis to
Accounts. Assets taken on Finance Lease have been capitalised during
the year of Agreement and charged off in accordance with the applicable
rate of depreciation.
p) Borrowing cost
Borrowing cost in relation to a qualifying asset and capitalised as
part of the cost of a qualifying asset when it is probable that they
will result in future economic benefits to the enterprise and the costs
can be measured reliably. Other borrowing costs are recognised as an
expense in the period in which they are incurred.
q) Taxation
Provision for tax is made on the taxable income for the year in
accordance with the applicable provisions of the Income Tax Act, 1961.
Deferred tax is recognised subject to consideration of prudence in
respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period are capable of reversal in one or more subsequent
periods.
r) Provisions
Provisions are recognised in respect of obligations where, based on the
evidence available, their existence at the Balance Sheet date.
s) Excise duty under expenditure, represents payments made/ to be made
during the year on goods cleared/ to be cleared.
Payment of services where service tax is charged and credit for the
same is taken as accounted net of service tax.
t) The expenses incurred on sugarcane and on trees are accumulated
under the caption "Standing Sugarcane" and "Planted Trees" (excluding
planted trees having maturity of over 18 months) respectively and
charged to statement of Profit & Loss in the year of harvesting.
Mar 31, 2010
1. a) The Financial Statements are prepared in accordance with
generally accepted accounting principles and as per the requirements of
the Companies Act, 1856.
b) The accrual basis of accounting is followed unless otherwise stated.
c) Fixed Assets (excluding Revalued Assets) are stated at cost
including cost of installation and other incidental expenses. Assets of
Rs. 5,000/- and below have been fully depreciated during the year of
purchase.
d) Depreciation on Fixed Assets, acquired after 31.08.1970, has been
calculated on Straight Line Method under Section 205(2)(b) of the
Companies Act, 1956 while other assets have been depreciated on Written
Down Value Method under Section 205(2)(a) of the said Act.
e) Investments are stated at cost. Temporary diminution in the value of
investments have not been provided for as they are long term in nature.
f) Inventories are valued on FIFO basis as under:-
i) Stores, Spares & Others : At cost exclusive of CENVAT receivable
ii) Finished Goods : At lower of cost or market value
iii) Stock-in-Process :
-Sugar and Molasses : at lower of estimated cost or realisable value
-Planted Trees, having maturity of above 18 months, are taken at
estimated realisable value
g) The liability for Gratuity and leave encashment is not provided for
and actual liability is accounted for in the year of retirement of
employees, except for the employees of the Marketing Division for which
annual contribution is made to the Life Insurance Corporation of India
under its Group Gratuity-cum-Life Assurance Scheme/Group Leave
Encashment Scheme.
h) Sales are shown inclusive of excise duty and net of returns.
i) Foreign Exchange Transactions :
i) Transactions in foreign currencies are recognised at the prevailing
exchange rates on the transaction dates. Realised gains and losses on
settlement of foreign currency transactions are recognised in the
Profit & Loss Account. Foreign currency monetary items at the year-end
are reported at the year-end exchange rate, and the resultant exchange
difference is recognised in the Profit & Loss Account.
ii) In respect of transactions covered by Forward Exchange Contracts,
the difference between the contract rate and spot rate on the date of
transaction is amortised over the life of contract. j) The expenses
incurred on Sugarcane and on Trees are accumulated under the caption
"Standing Sugarcane" and "Planted Trees" (excluding Planted Trees
having maturity of
over 18 months) respectively and charged to Profit & Loss Account in
the year of
harvesting.
k) Excise Duty under expenditure, represents payments made/to be made
during the year on goods cleared/to be cleared.
I) Borrowing Cost: Borrowing costs in relation to a qualifying asset
and capitalised as part of the cost of a qualifying asset when it is
probable that they will result in future economic benefits to the
enterprise and the costs can be measured reliably. Other borrowing
costs are recognised as an expense in the period in which they are
incurred.
m) Impairment of losses, if any, are recognised in accordance with the
accounting standard issued in this regard by the Institute of Chartered
Accountants of India.
n) Taxation : Provision for tax is made on the taxable income for the
year in accordance with the applicable provisions of the Income Tax
Act, 1961. Deferred tax is recognised subject to consideration of
prudence in respect of deferred tax assets, on timing differences,
being the difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods.
o) Provisions are recognised in respect of obligations where, based on
the evidence available, their existence at the Balance Sheet date.
Contingent Liabilities are shown by way of Notes to the Accounts in
respect of obligations where, based on the evidence available, their
existence at the Balance Sheet date is considered not probable.
Contingent assets are neither recognised nor disclosed in the financial
statements.
p) Payment for services where service tax is charged and credit for the
same is taken as accounted net of service tax.