Accounting Policies of Piccadily Sugar and Allied Industries Ltd. Company

Mar 31, 2015

1 The financial statements have been prepared in accordance with generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respects with the Accounting Standards, notified under section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

2 Fixed Assets & Depreciation :

Due to application of schedule II to the Companies Act, 2013 with effect from April 1, 2014, the management has re-estimated useful life and residual values of all its fixed assets and determined separate useful life for each major asset, if they have useful life i.e. materially different from that of remaining asset. The management believes that the depreciation rates currently used fairly refect its estimate of the useful life and residual value of fixed asset. If asset has zero remaining useful life on the date of Schedule II becoming effective, i.e. April 01, 2014, its carrying amount, after retaining any residual value, is charged to the opening balance of retained earnings. The carrying amount of other assets i.e., whose remaining useful life is not nil on April 01, 2014, is depreciated over their remaining useful life. Upto March 2014, the assets are depreciated on Straight Line Method as per Schedule XIV of the Companies Act, 1956

3 Inventories:

Raw Material : At cost on FIFO basis

Work in Process : At estimated cost including expenses attributable to production on percentage completion basis/ Net Realizable value, whichever is low.

Finished Goods : At weighted average cost/net realizable value which ever is low, including Excise duty and all expenses attributable to production.

By Products : At Net realisable value inclusive of Excise Duty.

Stores and spares : At cost

4 Sales are inclusive of Excise Duty.

5 Long term investments are carried at cost.

6 Contingent liabilities are not provided for and are disclosed by way of notes.

7 Accounting policies not specifically referred to are in consistent with generally accepted accounting principles.

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Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Company prepares its accounts on accrual basis, except otherwise slated, in accordance with the normally accepted Accounting Principle s and Accounting Standards & Relevant Provisions of The Companies Act 1956 The financial statements are prepared on accrual basis under the historical cost convention and on the basis of going concern.

2. USE OF ESTIMATE S

The preparation of financial statements in conformity with Accounting Principles generally accepted in India, requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on The date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known /materialised.

3. Fixed Assets & Depreciation:

Fixed Assets are stated at their original cost of acquisition including all related expenses on acquisition and installation. Depreciation on fixed assets (includes composite depreciation charged on factory building and other building) has been provided on straight line method on pro-rata basis as per rates briefed in schedule - XIV of the Companies Act 1956 Fixed Assets individually costing less than Rs. 5,000/- are depreciated at the rate of 100% in the year of purchase.

4. inventories:

Raw Material : At cost on FIFO basis

Work in Process : At estimated cost including expenses attributable to production on per centage completion basis/ Net Realizable value, whichever is low.

Finished Goods : At weighted average cost/net realizable value which ever is low, including Excise duty and all expenses attributable to production

By Products : At Net realisable value inclusive of Excise Duty.

Stores and spares : At cost

5. INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value, computed category-wise.

Long-term investments are stated at cost

6. RECOGNITION OF INCOME AND EXPENDITURE

Sale are recognised when goods are supplied and are recorded net of rebates and sale tax but inclusive of excise duty. Expenses are accounted for on accrual basis.

7. CURRENT & DEFERRED TAX

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the lax authorities, using the applicable tax rales Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realise The same. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

8. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision is recognised in the accounts when there Is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle The obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements.

9. Accounting policies not specifically referred to are in consistent with generally accepted accounting principles.

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Mar 31, 2013

1 The Company prepares its accounts on accrual basis, except otherwise stated in accoraanramr.um gg rnally accepted Acrounting Principles and Accounting Standards & Relevant Provisions of The Companies Act, 1956.

2 Fixed Assets & Depreciation: '' Fixed Assets are stated at their original cost of acquisition including all related expenses on acquisition and nstallafcn IDepreciation on fixed assets (includes composite deprecation charged on.factorybui dingand 5 Kino) has been provided on straight line method on pro-rata basis as per rates briefed tn sched- KlV
3. Inventories:

Raw MatPrial At on basis S in toss : At estimated cost including expenses attnbutable to worn in process production on percentage completion basis/ Net Realizable value, whichever is low,

Finiohwi Goods : At weighted average cost/net realizable value which inisneo uqogs duty and a,| expenses attributable to production. By Products : At Net realisable value inclusive of Excise Duty. Stores and spares : At cost

4 Sales are inclusive of Excise Duty.

5 Long term investments are carried at cost.

6 Contingent liabilities are not provided for and are disclosed by way of notes.

7 Accounting policies not specifically referred to are in consistent with generally accepted accounting principles.

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Mar 31, 2012

1 The company prepares its accounts on accural basis, except otherwise stated, in accordance with the normally accepted accounting principles and accounting standards & relevant provisions of the Companies Act, 1956.

2 Fixed Assets & Depreciation Fixed Assets are stated at their original cost of acquisition including all related expenses on acquisition and installation. Depreciation on fixed assets (includes composite depreciation charged on factory buildings and other buildings) has been provided on straight line method on pro-rata basis as per rates briefed in Schedule XIV of Companies Act 1956 Fixed Assets individually costing less than Rs. 5000/- are depreciated at the rate of 100% in the year of purchase.

3 Inventories:

a) Raw Material : At cost on FIFO basis.

b) Consumable Stores & spares : At cost.

c) Finished Goods : At weighted average cost/net realizable value whichever is less, including excise duty and

all expenses attributable to production.

d) By Products : At net realisable value inclusive of Excise Duty.

4 Sales are inclusive of Excise Duty.

5 Gratuity Liability has been provided on basis of acturial valuation.

6 Accounting policies not specifically referred to are in consistent with generally accepted accounting principles.

7 Contingent liabilities are not provided for and are disclosed by way of notes.

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Mar 31, 2010

1 The Company prepares its accounts on accrual basis, except otherwise stated, in accordance with the normally accepted accounting principles and Accounting Standards & relevant Provisions of the Companies Act, 1956.

2 Fixed Assets & Depreciation

Fixed Assets are stated at their original cost of acquisition including all related expenses on acquisition and installation. Depreciation on fixed assets (includes composite depreciation charged on factory buildings and other buildings) has been provided on straight line method on pro-rata basis as per rates briefed in Schedule XIV of Companies Act 1956. Fixed assets individually costing less than Rs. 5000/- are depriciated @ 100% in the year of purchase.

3 Inventories:

a) Raw Material : At cost on FIFO basis.

b) Consumable Stores

& Spares : At cost.

c) Work in progress : At estimated cost including expenses

attributable to production on percentage

completion basis/ net realizable value,

whichever is low.

d) Finished Goods : At weighted average cost/net realizable value

whichever is low,

including excise duty and all

expenses attributable to production.

e) By Products : At net realisable value inclusive of

Excise Duty.

4 Sales are inclusive of Excise Duty.

5 Contingent liabilities are not provided for and are disclosed by way of notes.

6 Gratuity Liability has been provided on basis of acturial valuation .

7 Accounting policies not specifically referred to are in consistent with generally accepted accounting principles.