Mar 31, 2016
NOTE 1 : SIGNIFICANT ACCOUNTING POLICIES
1.1 Basis of accounting and preparation of financial statements
These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (âIndian GAAPâ) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrul basis, except for certain financial instruments which are measured at fair value.
1.2 Fixed Assets
Fixed assets are recorded at acquisition/ construction cost less depreciation thereon. Interest on the term loans related to acquisition of fixed assets is capitalized up to the period such assets are ready for use.
1.3 Depreciation
Depreciation on Fixed Assets is provided on the written down value method in accordance with Schedule II of the Company Act 2013 and adopted useful life as stated in Schedule II along with residual value of 5% of the cost of assets except, fixed assets individually costing up to Rs. 5000 is being fully depreciated in the year of purchase.
1.4 Up to last year closing stock of Bagasse, being not material, was not incorporated in books of accounts, whereas this year the same has been valued at estimated realizable value and has been treated as stock in hand at the close of the year.
1.5 Inventory Valuation
a) Raw materials and stores & spares are valued at average cost.
b) Work-in-Progress is valued at estimated cost.
c) Finished stocks are valued at âLower of Cost and net Realizable Valueâ as prescribed by Accounting Standard-2 issued by the Institute of Chartered Accountants of India except that the byproduct of Molasses and Bagasse has been valued at net realizable value because their cost price is not ascertainable.
1.6 Other Current Assets
Current Assets, Loans and Advances are accounted for at their net realizable value.
1.7 Investments
Current Investments comprising Investment in Mutual Funds are Stated at lower of cost or market value /net assets value.
1.8 Sales
Sales are recognized when supply of goods takes place and include Excise Duty but exclude Sales Tax, thereon.
1.9 Recognition of Income/ Expenditure
Income/Expenditure are accounted for on accrual basis, except as specifically stated otherwise in financial statements.
1.10 Provisions, Contingent Liabilities and Contingent Assets
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 an 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.
1.11 Employee Benefits
a) Short term employee benefits:
All employees benefits falling due wholly with in twelve months of rendering the services are classified as short term employee benefits, which include benefits like salaries, wages, short term compensated absences and performance incentives and are recognized as expenditure at the undiscounted value in the period in which the employee renders the related service.
b) Post-employment benefits :
Contributions to defined contribution schemes such as Provident Fund, Pension Fund etc. are recognized as expenses in the period in which the employee renders the related service in respect of certain employees, Provident Fund contributions are made to a Trust administered by the Company. The interest rate payable to the members of the Trust shall not be lower than the statutory rate of interest declared by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made good by the Company.
c) Govt. administered fund, company has no further obligations beyond its monthly contributions.
d) The Company is also contributing to superannuation fund for certain key managerial personnel, at pre determined rates to the Superannuation Fund Trust, which is recognized as expenses in the period in which employee renders the related service, and there are no other obligations with regard to superannuation fund of key managerial personnel.
Mar 31, 2015
1.1 Basis of accounting and preparation of financial statements
These financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India ('Indian GAAP') to
comply with the Accounting Standards specified under Section 133 of the
Companies Act, 2013, read with Rule 7 of the Companies (Accounts)
Rules, 2014 and the relevant provisions of the Companies Act, 2013. The
financial statements have been prepared under the historical cost
convention on accrual basis, except for certain financial instruments
which are measured at fair value.
1.2 Fixed Assets
Fixed assets are recorded at acquisition/ construction cost less
depreciation thereon. Interest on the term loans related to acquisition
of fixed assets is capitalized upto the period such assets are ready for
use.
1.3 Depreciation
a) Depreciation on Fixed Assets (Other than Free Hold and Capital work
in progress) acquired during the year is charged on written down value
method so as to write off 95% of the cost of the assets over the useful
life and for the assets acquired prior to 01.04.2014, the carrying
amount as on 01.04.2014 is depreciated over the remaining useful life
retaining 5% cost of the assets as the residual value to comply with
the requirement of Schedule II of the Companies Act, 2013.
b) Fixed Assets individually costing upto Rs. 5000 is being fully
depreciated in the year of purchase.
1.4 Inventory Valuation
a) Raw materials and stores & spares are valued at average cost.
b) StockÂinÂprocess is valued at estimated cost.
c) Finished stocks are valued at "Lower of Cost and net Realisable
Value" as prescribed by Accounting Standard 2 issued by the Institute
of Chartered Accountants of India except that the by product of
Molasses has been valued at lower of estimated cost and net realisable
value because its cost price is not ascertainable.
1.5 Other Current Assets
Current Assets, Loans and Advances are accounted for at their net
realizable value.
1.6 Investments
Current Investments comprising Investment in Mutual Funds are Stated at
lower of cost or market value /net assets value.
1.7 Sales
Sales are recognized when supply of goods takes place and include
Excise Duty but exclude Sales Tax, thereon.
1.8 Recognition of Income/ Expenditure
Income/Expenditure are accounted for on accrual basis.
1.9 Provisions, Contingent Liabilities and Contingent Assets
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 an outfow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
1.10 Employee Benefits
a) Short term employee benefits:
All employee benefits falling due wholly within twelve months of
rendering the services are classified as short term employee benefits,
which include benefits like salaries, wages, short term compensated
absences and performance incentives and are recognised as expenditure
at the undiscounted value in the period in which the employee renders
the related service.
b) Post-employment benefits :
Contributions to defined contribution schemes such as Provident Fund,
Pension Fund etc. are recognised as expenses in the period in which the
employee renders the related service in respect of certain employees,
Provident Fund contributions are made to a Trust administered by the
Company. The interest rate payable to the members of the Trust shall
not be lower than the statutory rate of interest declared by the
Central Government under the Employees Provident Funds and
Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made
good by the Company.
c) Govt. administered fund, company has no further obligations beyond
its monthly contributions.
d) The Company is also contributing to superannuation fund for certain
key managerial personnel, at pre determined rates to the Superannuation
Fund Trust, which is recognized as expenses in the period in which
employee renders the related service, and there are no other
obligations with regard to superannuation fund of key managerial
personnel .
Mar 31, 2014
1.1 Basis of accounting and preparation of financial statements
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 which
continue to be applicable in respect of Section 133 of the Companies
Act, 2013 in terms of General Circular 15/2013 dated 13 September, 2013
of the Ministry of Corporates Affairs) and the relevant provisions of
the Companies Act, 1956. The financial statements have been prepared
on accrual 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
Fixed assets are recorded at acquisition/ construction cost less
depreciation thereon. Interest on the term loans related to acquisition
of fixed assets is capitalized upto the period such assets are ready
for use.
1.3 Depreciation
a) Depreciation is provided on written down value method at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
b) Depreciation on Fixed Assets on Rented land are amortized over the
lease period.
c) The exact written down value of some of the articles of meagre value
written off under the head "Sales and Adjustments during the year"
being not ascertainable, depreciation charged thereon in the previous
years has been adjusted this year on proportionate basis.
1.4 Inventory Valuation
a) Raw materials and stores & spares are valued at average cost.
b) Stock-in-process is valued at estimated cost.
c) Finished stocks are valued at "Lower of Cost and net Realisable
Value" as prescribed by Accounting Standard-2 issued by the Institute
of Chartered Accountants of India except that the by product of
Molasses has been valued at lower of estimated cost and net realisable
value because its cost price is not ascertainable.
1.5 Other Current Assets
Current Assets, Loans and Advances are accounted for at their net
realizable value.
1.6 Investments
Investments are accounted for at cost as reduced by amount written off.
1.7 Sales
Sales are recognized when supply of goods takes place and include
Excise Duty but exclude Sales Tax.
1.8 Recognition of Income/ Expenditure Income/Expenditure are accounted
for on accrual basis.
1.9 Provisions, Contingent Liabilities and Contingent Assets
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 an 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.
1.10 Employee Benefits
a) Short term employee benefits:
All employee benefits falling due wholly with in twelve months of
rendering the services are classified as short term employee benefits,
which include benefits like salaries, wages, short term compensated
absences and performance incentives and are recognised as expenditure
at the undiscounted value in the period in which the employee renders
the related service.
b) Post- employment benefits :
Contributions to define contribution schemes such as Provident Fund,
Pension Fund etc. are recognised as expenses in the period in which the
employee renders the related service in respect of certain employees,
Provident Fund contributions are made to a Trust administered by the
Company. The interest rate payable to the members of the Trust shall
not be lower than the statutory rate of interest declared by the
Central Government under the Employees Provident Funds and
Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made
good by the Company.
c) Govt. administered fund, company has no further obligations beyond
its monthly contributions.
d) The Company is also contributing to superannuation fund for key
managerial personnel, at pre determined rates to the Superannuation
Fund Trust, which is recognised as expenses in the period in which
employee renders the related service, and there are no other
obligations with regard to superannuation fund of key managerial
personnel.
2.6.1 Loan from Banks (Cash Credit) Secured against first pari passu
charge by way of Hypothecation of the entire current assets including
Finished & Semi-finished stocks, raw materials, stores and receivables
of the Company in favour of State Bank of India and Punjab National
Bank and by way of Collateral Security on second pari passu charge on
fixed assets including extension of Equitable Mortgage of land and
building of the Company at Shamli and Unn.
The working capital loan of Rs. 4,994.90 lacs from Zila Sahakari Bank
Ltd., Ghaziabad and Bulandshahar is secured by way of pledging of Sugar
stock of the book value of Rs. 6,899.90 Lacs. .
2.8.1 Term Loans relating to previous year mentioned at (a) & (b) above
Secured against first pari passu charge of State Bank of India with
Punjab National Bank on the entire Fixed Assets of Unn Sugar Unit and
by way of Collateral Security on second pari passu charge on Fixed
Assets at Shamli.
2.24.1 Salary & Wages includes Rs. 49,07,983/- paid to Managerial
Personnel (Previous year Rs. 38,45,295/-).
2.24.2 Provident Fund includes Rs. 3,38,400/- for Managerial Personnel
(Previous year Rs. 2,73,600/-)
2.24.3 Contribution to Provident fund, Superannuation fund and Family
Pension Fund charged off during the year are as under.
The Company also provides for post employment defined benefit in the
form of gratuity and leave liability. The Employee''s Gratuity Scheme
is managed by Life Insurance Corporation of India defined benefit plan.
The present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method at each Balance Sheet
date.
The details provided by Actuary in respect of Gratuity and Leave
liability are as under :
NOTE :- To match the figures with Actuarial liability as on 31.03.2014
amount of Rs. 13,96,862/- has been reversed from statement of Profit &
Loss (Previous year charged to statement of Profit & loss Rs.
1,43,742/-).
Mar 31, 2012
1.1 Fixed Assets
Fixed assets are recorded at acquisition/ construction cost less
depreciation thereon. Interest on the term loans related to acquisition
of fixed assets is capitalized upto the period such assets are ready
for use.
1.2 Depreciation
a) Depreciation is provided on written down value method at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
b) Depreciation on Fixed Assets on Rented land are amortized over the
lease period.
c) The exact written down value of some of the articles of meagre value
written off under the head "Sales and Adjustments during the year"
being not ascertainable, depreciation charged thereon in the previous
years has been adjusted this year on proportionate basis.
1.3 Inventory Valuation
a) Raw materials and stores & spares are valued at average cost.
b) Stock-in-process is valued at estimated cost.
c) Finished stocks are valued at "Lower of Cost and net Realisable
Value" as prescribed by Accounting Standard-2 issued by the Institute
of Chartered Accountants of India except that the by product of
Molasses has been valued at lower of estimated cost and net realisable
value because its cost price is not ascertainable.
1.4 Other Current Assets
Current Assets, Loans and Advances are accounted for at their net
realizable value.
1.5 Investments
Investments are accounted for at cost as reduced by amount written off.
1.6 Sales
Sales are recognized when supply of goods takes place and include
Excise Duty but exclude Sales Tax.
1.7 Recognition of Income/ Expenditure Income/Expenditure are accounted
for on accrual basis.
1.8 Provisions, Contingent Liabilities and Contingent Assets
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 an 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.
1.9 Employee Benefits
a) Short term employee benefits:
All employee benefits falling due wholly with in twelve months of
rendering the services are classified as short term employee benefits,
which include benefits like salaries, wages, short term compensated
absences and performance incentives and are recognised as expenditure
at the undiscounted value in the period in which the employee renders
the related service.
b) Post- employment benefits :
Contributions to defined contribution schemes such as Provident Fund,
Pension Fund etc. are recognised as expenses in the period in which the
employee renders the related service in respect of certain employees,
Provident Fund contributions are made to a Trust administered by the
Company. The interest rate payable to the members of the Trust shall
not be lower than the statutory rate of interest declared by the
Central Government under the Employees Provident Funds and
Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made
good by the Company.
c) Govt. administered fund, company has no further obligations beyond
its monthly contributions.
d) The Company is also contributing to superannuation fund for key
managerial personnel, at pre determined rates to the Superannuation
Fund Trust, which is recognised as expenses in the period in which
employee renders the related service, and there are no other
obligations with regard to superannuation fund of key managerial
personnel.
Mar 31, 2011
(a) Fixed Assets : Fixed assets are recorded at acquisition/
construction cost less depreciation
thereon. Interest on the term loans
related to acquisition of fixed assets
is capitalized upto the period such
assets are ready for use.
(b) Depreciation : (i) Depreciation is provided on written
down value method at the rates
prescribed in Schedule XIV of the
Companies Act, 1956.
(ii) Depreciation on Fixed Assets on
Rented land are amortized over the
lease period.
(iii) The exact written down value of some
of the articles of meagre value
written off under the head "Sales
and Adjustments during the year"
being not ascertainable, depreciat
-ion charged thereon in the previous
years has been adjusted this year
on proportionate basis.
(c) Inventory Valuation : (i) Raw materials and stores & spares
are valued at average cost.
(ii) Stock-in-process is valued at
estimated cost.
(iii) Finished stocks are valued at "Lower
of Cost and net Realisable Value" as
prescribed by Accounting Standard-2
issued by the Institute of Chartered
Accountants of India except that the
by product of Molasses has been
valued at lower of estimated cost
and net realisable value because its
cost price is not ascertainable.
(d)Other Current Assets : Current Assets, Loans and Advances are
accounted for at their net realizable
value.
(e) Investments : Investments are accounted for at cost as
reduced by amount written off.
(f) Sales : Sales are recognized when supply of goods
takes place and include Excise Duty but
exclude Sales Tax.
(g) Recognition of
Income/ Expenditure : Income/Expenditure are accounted for on
accrual basis.
(h) Provisions,
Contingent Liabilities : Provisions involving substantial degree
and Contingent Assets of estimation in measurement are recogn
-ized when there is a present obligation
as a result of past events and it is
probable that there will be an 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.
Mar 31, 2010
(a) Fixed Assets
: Fixed assets are recorded at acquisition/ construction cost
less depreciation thereon. Interest on the term loans related to
acquisition of fixed assets is capitalized upto the period such assets
are ready for use.
(b) Depreciation
: (i) Depreciation is provided on written down value method at the
rates prescribed in Schedule XIV of the Companies Act, 1956.
(ii) Depreciation on Fixed Assets on Rented land are amortized over the
lease period.
(iii) The exact written down value of some of the articles of meagre
value written off under the head "Sales and Adjustments during the
year" being not ascertainable, depreciation charged thereon in the
previous years has been adjusted this year on proportionate basis.
(c) Inventory Valuation
: (i) Raw materials and stores & spares are valued at average cost.
(ii) Stock-in-process is valued at estimated cost.
(iii) Finished stocks are valued at ÃLower of Cost and net Realisable
Valueà as prescribed by Accounting Standard-2 issued by the Institute
of Chartered Accountants of India except that the by product of
Molasses has been valued at lower of estimated cost and net realisable
value because its cost price is not ascertainable.
(d) Other Current Assets
: Current Assets, Loans and Advances are accounted for at
their net realizable value.
(e) Investments
: Investments are accounted for at cost as reduced by amount
written off.
(f) Sales
: Sales are recognized when supply of goods takes place and
include Excise Duty but exclude Sales Tax.
(g) Recognition of Income/ Expenditure : Income/Expenditure are
accounted for on accrual basis.
(h) Provisions, Contingent Liabilities and Contingent Assets
: 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 an 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.
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