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Accounting Policies of Som Distilleries & Breweries Ltd. Company

Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

2.01 Basis for preparation

These financial statements have been prepared in accordance
with Indian Accounting Standards (Ind AS) under the historical
cost convention on the accrual basis, and the provisions of
the Companies Act, 2013 (''Act'') to the extent notified. The Ind
AS are prescribed under section 133 of the Act read with Rule
3 of Companies (Indian Accounting Standards) Rules, 2015 and
subsequent amendments thereof.

All assets and liabilities have been classified as current or non¬
current as per the Company''s normal operating cycle and
other criteria set out in the Schedule III to the Companies Act,
2013. Based on the nature of products and the time between
acquisition of assets for processing and their realization in cash
and cash equivalents, the Company has ascertained its operating
cycle as 49 days for the purpose of current/ non-current
classification of assets and liabilities.

2.02 Key accounting estimates and judgments

The preparation of standalone financial statements requires
management to make judgments, esitmates and assumptions
in the application of accounting policies that affect the reported
amounts of assets, liabilities, income and expeses. Actual results
may differ from these estimates. Continuous evaluation is done
on the estimation and judgements based on historical experience
and other factors, including expectations of future events that
are believed to be reasonable. Revisions to accounting estimates
are recognized preospectively.

2.03 Revenue recognition

Revenue from contracts with customers is recognised when
control of the goods or services are transferred to the customer at
an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or services.

Revenue is recognized to the extent it is probable that the
economic benefits will flow to the Company and the revenue
can be reliably measured, regardless of when the payment is
being received. Revenue is measured at the fair value of the
consideration received or receivable net off returns, discounts
and breakages, and taking into account contractually defined
terms of payment and excluding taxes or duties collected on
behalf of the Government. The Company has concluded that it
is the principal in all of its revenue arrangements since it is the
primary obligor in all the revenue arrangements as it has pricing
latitude and is also exposed to inventory and credit risks.

Based on the Educational Material on Ind AS 115 issued by the
Institute of Chartered Accountants of India ("ICAI”), the recovery
of excise duty flows to the Company on its own account and

hence is a liability of the manufacturer which forms part of the
cost of production, irrespective of whether the goods are sold or
not. Since the recovery of excise duty flows to the Company on its
own account, revenue includes excise duty. However, sales tax/
value added tax (VAT), goods and services tax are not received
by the Company on its own account and are taxes collected on
value added to the commodity by the seller on behalf of the
government. Accordingly, these are excluded from revenue.

2.04 Expenditure

Expenses are accounted for on accrual basis and provision is
made for all known losses and liabilities.

2.05 Property, plant and equipment

Property, plant and equipment is stated at cost, net of
accumulated depreciation and accumulated impairment losses,
if any. Costs directly attributable to acquisition are capitalized
until the property, plant and equipment are ready for use, as
intended by the Management.

The Company depreciates property, plant and equipment over
their estimated useful lives using the straight line method. The
estimated useful lives of assets are as follows:

The residual values, useful lives and methods of depreciation and
amortization of property, plant and equipment and intangible
assets are reviewed at each financial year end and adjusted
prospectively, if appropriate.

2.06 Cash and cash equivalents

Cash and cash equivalent in the balance sheet and cash flow
statement comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which
are subject to an insignificant risk of changes in value.

2.07 Impairmenti) Financial Assets (other than at fair value)

The company assesses at each date of balance sheet whether a
financial asset or a company of financial assets is impaired. IND
AS 109 required expected credit losses to be measured through a
loss allowance. The company recognizes lifetime expected losses
for all contract assets and/or all trade receivables that do not
constitute of financial transaction. For all other financial asset,

expected credit losses are measured at an amount equal to the
12 month expected credit losses or at an amount equal to the
lifetime expected credit losses if the credit risk on the financial
asset has increased significantly since initial recognition.

ii) Non-financial assetsTangible and Intangible assets

Property, plant and equipment and intangible assets with
finite life are evaluated for recoverability whenever there is any
indication that their carrying amounts may not be recoverable. If
any such indication exists the recoverable amount (i.e. higher of
the fair value less cost to sell and the value-in-use) is determined
on an individual asset basis unless the asset does not generate
cash flow that are largely independent of those from other
assets.In such, the recoverable amount is determined for the
cash generating unit (CGU) to which the asset belongs.

If the recoverable amount of the asset (or CGU) is estimated to
be less than its carrying amount of the asset (or CGU) is reduced
to its recoverable amount. An important loss is recognized in the
statement of profit and loss.

2.08 Inventories

Inventories are stated at lower of cost and net realizable value.
Costs are arrived at as follows:

(i) Raw materials, components, packing material, stores and
spares on weighted average basis.

(ii) Stock in process and finished goods taking into account
the annual average cost of materials consumed, direct
production expenses, interest, depreciation and related
Government duties.

Net realizable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and
estimated costs necessary to make the sale.

2.0 9 Foreign Currency Transactions

The functional currency of the Company is the Indian rupee
(INR). These financial statements are presented in INR.

Transactions in foreign currencies are initially recorded by the
Company at their respective functional currency spot rates at the
date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies
are translated at the functional currency spot rates of exchange
at the reporting date. Exchange differences arising on settlement
or translation of monetary items are recognised as income or
expenses in the period in which they arise.

2.10 Retirement and other employee benefitsShort Term Employee Benefits

The undiscounted amount of short term employee benefits
expected to be paid in exchange for the services rendered by
employees are recognized as an expense during the period
when the employees render the services. These benefits include
performance incentives and compensated absences.

Post-Employment BenefitsDefined Contribution Plans

A defined contribution plan is a post-employment benefit
plan under which the Company pays specified contributions
to a separate entity. The Company makes specified monthly
contributions towards Provident Fund. The Company has no
obligation other than the contribution payable to the Provident
Fund.

The Company''s contribution is recognised as an expense in the

Statement of Profit and Loss during the period in which the
employee renders the related service.

Defined Benefit Plans

Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation done as per projected
unit credit method, carried out by an independent actuary at the
end of the year.

Net interest is calculated by applying the discount rate to the
net defined benefit liability or asset. The Company recognises
the following changes in the net defined benefit obligation as
an expense in the statement of profit and loss - Service costs
comprising current service costs, past-service costs, gains and
losses on curtailments and non-routine settlements and net
interest expense or income.

Remeasurements, comprising actuarial gains and losses, the
effect of the asset ceiling, excluding amounts included in net
interest on the net defined benefit liability and the return on
plan assets (excluding amounts included in net interest on
the net defined benefit liability), are recognised immediately
in the balance sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which they
occur. Remeasurements are not reclassified to profit or loss in
subsequent periods.

2.11 Taxes on Income

Current income tax

Current income tax liabilities are measured at the amount
expected to be paid to the tax authorities in accordance with
the Income-tax Act, 1961. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively
enacted, at the reporting date.

Current income tax relating to items recognized outside profit
or loss is also recognised outside profit or loss (either in OCI or in
equity in correlation to the underlying transaction). Management
periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are
subject to interpretation and establishes provisions, where
appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary
differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the
reporting date.

Deferred tax assets are recognised for all deductible temporary
differences, the carry forward of business losses and unabsorbed
depreciation. Deferred tax assets are recognised to the extent
that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry
forward of business losses and unabsorbed depreciationcan be
utilised.

The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates
that are expected to apply in the year when the asset is realised
or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the reporting
date.

Deferred tax relating to items recognised outside profit or loss
is recognised outside profit or loss (either in OCI or in equity).

Deferred tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a
legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the
same taxable entity and the same taxation authority.


Mar 31, 2018

1. SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis for preparation

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis, and the provisions of the Companies Act, 2013 (‘Act’) to the extent notified. The Ind AS are prescribed under section 133 of the Act read with Rule 3 of Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments thereof.

For all periods up to and including the year ended March 31, 201 7, the Company had prepared its financial statements in accordance accounting standards notified under the section 133 of the Act, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements for the (year ended March 31, 2018) are the first Ind AS financial statements that the Company has prepared in accordance with Ind AS. The adoption of Ind AS was carried out in accordance with Ind AS 101, First Time Adoption of Indian Accounting Standards.

Refer to note 3 for information on how the Company adopted Ind AS.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 70 days for the purpose of current/ non-current classification of assets and liabilities.

2.2 Revenue recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being received. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the Government. The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks.

Based on the Educational Material on Ind AS 18 issued by the Institute of Chartered Accountants of India (‘ICAI’), the Company has assumed that recovery of State excise duty flows to the Company on its own account and hence is a liability of the manufacturer which forms part of the cost of production, irrespective of whether the goods are sold or not. Since the recovery of excise duty flows to the Company on its own account, revenue includes excise duty. However, sales tax/ value added tax (VAT) is not received by the Company on its own account and is tax collected on value added to the commodity by the seller on behalf of the Government. Accordingly, it is excluded from revenue.

2.3 Expenditure

Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

2.4 Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the Management.

The Company depreciates property, plant and equipment over their estimated useful lives using the straight line method. The estimated useful lives of assets are as follows:

* Based on technical evaluation, the Management believes that the useful lives as given above best represent the period over which the Management expects to use these assets. Hence, the useful lives for the assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act, 2013.

The residual values, useful lives and methods of depreciation and amortization of property, plant and equipment and intangible assets are reviewed at each financial year end and adjusted prospectively, if appropriate.

2.5 Inventories

Inventories are stated at lower of cost and net realizable value. Costs are arrived at as follows:

(i) Raw materials, components, packing material, stores and spares on first in first out basis.

(ii) Stock in process and finished goods taking into account the annual average cost of materials consumed, direct production expenses, interest, depreciation and related Government duties.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

2.6 Foreign Currency Transactions

The functional currency of the Company is the Indian rupee (INR). These standalone Ind AS financial statements are presented in INR.

Transactions in foreign currencies are initially recorded by the Company at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised as income or expenses in the period in which they arise.

2.7 Retirement and other employee benefits Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include performance incentives and compensated absences.

Post-Employment Benefits Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund. The Company has no obligation other than the contribution payable to the Provident Fund.

The Company’s contribution is recognized as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.

Defined Benefit Plans

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done as per projected unit credit method, carried out by an independent actuary at the end of the year.

The Company makes contributions to a trust administered and managed by an insurance company to fund the gratuity liability. Under this scheme, the obligation to pay gratuity remains with the Company, although insurance Company administers the scheme.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss - Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements and net interest expense or income.

Re-measurements, comprising actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

2.8 Taxes on Income Current income tax

Current income tax liabilities are measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognized outside profit or loss is also recognized outside profit or loss (either in OCI or in equity in correlation to the underlying transaction). Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions, where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in OCI or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

2.9 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets and liabilities are recognized when the company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

Financial assets at amortized cost

Financial assets are subsequently measured at amortized cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of financial asset gave rise on specified dates to cash flows that are solely payments of principal and interest on principal amount outstanding.

Financial asset at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows on specified dates that are solely payments of principal and interest on principal amount outstanding and selling financial assets.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it measured at amortized cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit and loss immediately recognized in statement of profit and loss.

Financial liabilities

Financial liabilities which carry a floating rate of interest are measured at amortized cost using the effective interest method.

Equity Instruments

An equity instrument is a contract that evidences residual interest in the asset of the company after deducting all its liabilities. Equity instrument by the company are recognized at the proceeds received net of direct issue cost.

2.10 Impairment

i) Financial assets (other than at fair value)

The companies assesses at each date of Balance sheet whether a financial asset or a company of financial assets is impaired. Ind AS 109 required expected credit losses to be measured through a loss allowance. The company recognizes lifetime expected losses for all contract assets and/or all trade receivables that do not constitute of financial transaction. For all other financial asset, expected credit losses are measured at an amount equal to the 12 -month expected credit losses or at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

ii) Non-financial assets

Tangible and Intangible assets

Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flow that are largely independent of those from other assets. In such, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs.

If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount of the asset (or CGU) is reduced to its recoverable amount. An important loss is recognized in the statement of profit and loss.

2.11 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement, if any.

2.12 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

2.13 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. These exchange difference are presented in finance cost to the extent which the exchange loss does not exceed the difference between the costs of borrowing in functional currency when compared to the cost of borrowing in a foreign currency.

2.14 Earnings per equity share (‘EPS'')

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

2.15 Cash and cash equivalents

Cash and cash equivalent in the balance sheet and cash flow statement comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

3. First time adoption of Ind AS

These financial statements, for the year ended March 31, 2018, are the first financial statements that the Company has prepared in accordance with Ind AS together with the comparative period data as at and for the year ended March 31, 2017.In preparing these financial statements, the Company’s opening balance sheet was prepared as at April 0, 2016, the Company’s date of transition to Ind AS. This note explains the adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017.


Mar 31, 2016

CD COMPANY INFORMATION

5om Distilleries & Breweries Lid. is o Public company domiciled in Indio and incorporated under the provisions of Companies Act, 1956. As shares are listed on the Bombay Stock Exchange Limited (BSE) & National Stock Exchange of India (NSE). The Company is engaged in the manufacture amusable of Beer and Indian made foreign Liquor (IMFL). The Company is a market leader in Beer in the state of Madhya Pradesh. The company caters both domestic and international markets.

(2) SIGNIFICANT ACCOUNTING POLICIES

2J Basis for preparation of accounts

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting standards prescribed under Section 133 of the Companies Act, 2013 (''Ac!'') read with Rule 7 of the Companies (Accounts) Rules,

2014, the provisions of the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable.

Alt assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to The Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, The Company has ascertained ifs operating cycle as 70 days for the purpose of current/noncurrent classification of assets and liabilities.

2.2 Revenue recognition

Alt revenues are generally recognized on accrual basis except where there Is uncertainty of ultimate realisation.

2.3 Expenditure

Expenses are accounted for on accrual basis and provision Is made for all known losses and liabilities.

2.4 Fixed Assets and depreciation Fixed losels other than land (Including site development) are stated at cost less accumulated depreciation and impairment losses, if any. Close comprises the purchase price and any at Attributable cast (freight, duties, levies etc,) of bringing the asset to its working condition for its intended use and capitalization of interest and other expenses incurred up to the date of commissioning.

Depreciation Is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 except in respect of the labour quarters where useful fife is different than those prescribed in Schedule 11 are used.

2.5 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet dale to determine whether there is any Indication of impairment of the assets. If arty indication exists, on asset''s recoverable amount is estimated. An Impairment lass is recognized whenever the carrying amount of the asset exceeds the recoverable amount.

2.6 Inventories

Inventories are stated at lower of cost and net realizable value. Costs are arrived at os follows;

(i) Raw materials, components,, peeking material, stores and spares on first in first out basis.

(ii) Stock in process and finished goods taking into account the annual average cost of materials consumed, direct production expenses, Interest, depreciation and related Government duties. Net realizable value is the estimated selling price in the ordinary course or business, less estimated casts or completion and estimated costs necessary to make the sale.

2.7 Foreign Currency Transaction Transactions denominated in foreign currency are recorded at the exchange rates prevailing on the date of the transactions.

Current assets and liabilities in foreign currency are converted at the exchange rate prevailing at the year end and exchange differences are recognized in the Profit and Loss Account.

2.8 Retirement and other employee benefits

Short Term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during 1he period when the employees render the services.

These benefits include performance incentive and compensated absences.

Post-Employment Benefits Defined Contribution Plans

A defined contribution plan Is a postemployment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund.

The Company''s contribution is recognized as on expense In the Statement of Profit and Lass during the period In which the employee renders the related Service-

Defined Benefit Plans

The liability In respect of defined benefit plans and there post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which 1he benefit is expected to be derived from employees'' services. Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the 51a1ement of Profit and Loss.

2.9 Provision for Current and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the Income Tax Act. 1961. Deferred Tax resulting from ''timing difference'' between taxable and accounting income is computed using lax rotes and laws that are enacted or substantively enacted by the Balance Sheet date.

Terms/Rights attached to the class of shares.

{a) The company has one class of equity shares having par value of Rs. 10 per Share.

Each shareholder Is eligible for one vote per share held. The dividend proposed by the Board of Directors Is subject to The approval of the shareholders In the ensuing Annual

General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after the distribution of all preferential amounts 3n proportion to the for shareholding.

Co) Loan from IFCI Venture Capital Fund Ltd. is secured by personal guarantees of promoters and collaterals given by associates.


Mar 31, 2015

1.1 Basis for preparation of accounts

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 70 days for the purpose of current/non-current classification of assets and liabilities.

2.2 Revenue Recognition

All revenues are generally recognized on accrual basis except where there is uncertainty of ultimate realisation.

2.3 Expenditure

Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

2.4 Fixed Assets and depreciation

Fixed assets other than land (including site development) are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost (freight, duties, levies etc.) of bringing the asset to its working condition for its intended use and capitalization of interest and other expenses incurred uptothedateof commissioning. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 except in respect of the labour quarters where useful life is different than those prescribed in Schedule II are used.

2.5 Impairment of Asset

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment of the assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount.

2.6 Inventories

Inventories are stated at lower of cost and net realizable value. Costs are arrived at as follows:

(i) Raw materials, components, packing material, stores and spares on first in first out basis.

(ii) Stock in process and finished goods taking into account the annual average cost of materials consumed, direct production expenses, interest, depreciation and related Government duties.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs neces sary to make the saie.

2.7 Foreign Currency Transaction

Transactions denominated in foreign currency are recorded at the exchange rates prevailing on the date of the transactions.

Current assets and liabilities in foreign currency are converted at the exchange rate prevailing at the year end and exchange differences are recognized in the Profit and Loss Account.

2.8 Retirement and Other Employee Benefits

Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.

These benefits include performance incentive and compensated absences,

Post-Employment Benefits Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund.

The Company's contribution is recognized as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.

Defined Benefit Plans

The liability in respect of defined benefit plans and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees1 services.

Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the Statement of Profit and Loss.

2.9 Provision for Current and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the Income Tax Act. 1961. Deferred Tax resulting from 'timing difference' between taxable and accounting income is computed using tax rates and laws that are enacted or substantively enacted by the Balance Sheet date.


Mar 31, 2014

1.1 Basis for preparation of accounts

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principles (GAAP). According to Circular 15/2013 dated 13th September, 2013 read with circular 08/2014 dated 4th April, 2014, till the standards of Accounting or any addendum thereto are prescribed by the Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211 (3C) Companies (Accounting Standards) Rules, 2006 as amended and other relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 70 days for the purpose of current/no-current classification of assets and liabilities.

2.2 Revenue recognition

All revenues are generally recognized on accrual basis except where there is uncertainty of ultimate realisation.

2.3 Expenditure

Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

2.4 Fixed Assets and depreciation

Fixed assets other than land (including site development) are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost (freight, duties, levies etc.) of bringing the asset to its working condition for its intended use and capitalization of interest and other expenses incurred uptothe date of commissioning.

Depreciation is provided on fixed assets on the Straight Line Method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956 from the month following the month of acquisition/commissioning

2.5 Impairment of Assets

The carrying accounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the assets exceeds the recoverable amount.

2.6 Inventories

Inventories are stated at lower of cost and net realizable value. Costs are arrived at as follows:

(i) Raw materials, components, packing material, stores and spares on first in first out basis. (ii) Stock in process and finished goods taking into account the annual average cost of materials

consumed, direct production expenses, interest, depreciation and related Government duties.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated

costs of completion and estimated costs necessary to make the sale.

2.7 Foreign Currency Transaction

Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of the

transactions.

Current assets and liabilities in foreign currency are converted at the exchange rate prevailing at the year end and

exchange differences are recognized in the Profit and Loss Account.

2.8 Retirement and other employee benefits

Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the profit and loss account of the year when the contributions to the said fund are due. Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done as per projected unit credit method, carried out by an independent actuary at the end of year.

2.9 Provision for Current and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the Income Tax Act. 1961. Deferred Tax resulting from ''timing difference'' between taxable and accounting income is computed using tax rates and laws that are enacted or substantively enacted by the Balance Sheet date.

Terms/Rights attached to the class of shares.

(a) The company has one class of equity shares having par value of Rs. 10 per Share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after the distribution of all preferential amounts in proportion to their shareholding.

Notes:

(a) The company has taken Term Loan from IFCI Venture Capital Fund Ltd. for a period of three years. The loan is secured by personal guarantees of promoters and collaterals.

(b) The company has taken vehicle loans where interest rates vary from 8.5% to 12.75% p.a. Tenor of these loans ranges from 3 to 5 years. Respective vehicles have been hypothecated to the lending institutions to secure their loans. Repayment of these loans is regular as per the fixed equated monthly instalments.

(c) The unsecured Inter Corporate Deposit outstanding as on 31st March 2013 has been paid off during the year 2013-14.

Notes:

(a) Deferred tax assets and Deferred tax liabilities have been offset wherever the company has a legally enforceable right to set off current tax assets against current tax liabilities.

(b) Deferred tax assets and Deferred tax liabilities relate to income taxes leived by the same taxation authority.

Note: All the above Short term Loan & advances are unsecured and considered good.

Other Notes

[24] The Company has not received any information from any of the suppliers of their being a Micro, Small or Medium Enterprise Unit under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, amounts due to Micro and Small Scale Enterprises outstanding as on March 31st 2014 are not ascertainable.

[25] On the basis of actuarial valuation, as per the projected unit credit method by an insurance company, the company has made a suitable provision in the accounts for the payment of gratuity. The details as required to be stated as per "AS-15 Employee Benefits" have not been made available by the said insurance company, hence not given.


Mar 31, 2013

1.1 Basis for preparation of accounts

Company mainiains its accounts an actual rolling the historical cost convention in accordance with generally accepted account™ £>nncip''DS fGAAF ) in compliance wiiti rha jjrcvrsiDnE o< 1hs ComisFihifs Act,1956 and the Accounting Standards prescribed in the Comoanies I Accounlmo blardardEj Rules. ^OOSmitHjed by tht Central Government under section 211 (3c) of the Companies Act 1956

Company''s normal operating cycle and other criteria set out in the rh® Con?pa,|,e?s Ac['' ''95^ Based on the nature of products and the time between acquisition of assets for processing and mpan^ Whined its operating cycle as 70 days forthe purpose of current/non-current

1.2 Revenue recognition

All revenues are generally recognized on accrual basis except where there is uncertainty of ultimate realisation.

1.3 Expenditure .

Expenses are accounted for on accrual basis and provision is made for all know losses and liabilities.

Fixed Assets and depreciation

evel°Pme"t) are stated at cost less accumulated depreciation and impairment losses if any Cost

and Cf3 f prl*6 a?''attrlbutable cost (frei9ht, duties, levies etc.) of bringing the asset to its working condition for its intended use

and capitalization of interest and other expenses incurred upto the date of commissioning. ubiruenaea use

thp°mnntdh^NfiXed a?r''S on the(Strai?ht Llne Method accordance with the rates specified under Schedule XIV to the Companies Act, 1956 from the month following the month of acquisition/commissioning.

1.4 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment of the carcvina

amount of the fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized wheneve?the carrying amount of the assets exceeds the recoverable amount. recognizeo wneneverthe

1.5 Inventories

Inventories are stated at lower of costand net realizable value. Costs are arrived at as follows:

(i) Raw materials, components, Packing material, stores and spares on first in first out basis

1.6 Foreign Currency Transaction

Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of the transactions

1.7 Retirement and other employee benefits

Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the profit and loss account of the year when the contributions to the said fund are due.

Gratuity liability is a defined benefit obligation and rs provided for on the basis of an actuarial valuation done as per projected unit credit method deferred * ''ndependent aC,Uary at the end of *ear'' Ac,uarial gains/losses are immediately taken to profit and i^ss accoum atd a"e noi

Provision for Current and Deferred Tax

After taking into consideration benefits admissible underthe Income Tax Act. 1961.


Mar 31, 2012

1.1 Basis for preparation of accounts

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principles (GAAP), in compliance with the provisions of the Companies Act,1956 and the Accounting Standards prescribed in the Companies (Accounting Standards) Rules,2006 notified by the Central Government under section 211(3c) of the Companies Act 1956.

All assets and liabilities have been classified as current or non current as per the Company's normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 70 days for the purpose of current/non-current classification of assets and liabilities.

1.2 Revenue recognition

All revenues are generally recognized on accrual basis except where there is uncertainty of ultimate realisation.

1.3 Expenditure

Expenses are accounted for on accrual basis and provision is made for all know losses and liabilities.

1.4 Fixed Assets and depreciation

Fixed assets other than land (including site development) are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost (freight, duties, levies etc.) of bringing the asset to its working condition for its intended use and capitalization of interest and other expenses incurred upto the date of commissioning.

Depreciation is provided on fixed assets on the Straight Line Method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956 from the month following the month of acquisition/commissioning.

1.5 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the assets exceeds the recoverable amount.

1.6 Inventories

Inventories are stated at lower of cost and net realizable value. Costs are arrived at as follows:

(i) Raw materials, components, Packing material, stores and spares on first in first out basis.

(ii) Stock-in-process and finished goods taking into account the annual average cost of materials consumed, direct production expenses, interest, depreciation and related Government duties.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

1.7 Foreign Currency Transaction

Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of the transactions. Current assets and liabilities in foreign currency are converted at the exchange rate prevailing at the year end and exchange differences are recognized in the Profit and Loss Account.

1.8 Retirement and other employee benefits

Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the profit and loss account of the year when the contributions to the said fund are due.

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done as per projected unit credit method, carried out by an independent actuary at the end of year. Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.

1.9 Provision for Current and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the Income Tax Act. 1961. Deferred Tax resulting from 'timing difference' between taxable and accounting income is computed using tax rates and laws that are enacted or substantively enacted by the Balance Sheet date.


Mar 31, 2011

1. Basis of accounting

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principles (GAAP), in compliance with the provisions of the Companies Act, 1956 and the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 notified by the Central Government under section 211 (3c) of the Companies Act 1956.

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and disclosures of contingent liabilities on the date of the financial statements. Examples of such estimates include provision for doubtful debts/advances, future obligations in respect of retirement benefits etc. Difference if any between the actual results and estimates is recognized in the period in which the amounts are crystallized.

2. Fixed Assets and depreciation

Tangible Assets

Fixed assets other than land (including site development) are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost (freight, duties, levies etc.) of bringing the asset to its working condition for its intended use and capitalization of interest and other expenses incurred up to the date of commissioning.

Depreciation is provided on fixed assets on the Straight Line Method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956 from the month following the month of acquisition/commissioning.

Intangible Assets

Trade Marks/Copyrights and Brands are accounted at cost which is amortized over a period of five years.

3. Inventories

Inventories are stated at lower of cost and net realizable value. Costs are arrived at as follows:

(i) Raw materials, components, Packing material, stores and spares on first in first out basis.

(ii) Stock-in-process and finished goods taking into account the annual average cost of materials consumed, direct production expenses, interest, depreciation and related Government duties.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

4. Foreign Currency Transaction

Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of the transactions.

Current assets and liabilities in foreign currency are converted at the exchange rate prevailing at the year end and exchange differences are recognized in the Profit and Loss Account.

5. Revenue recognition

All revenues are generally recognized on accrual basis except where there is uncertainty of ultimate realisation. '

6. Retirement and other employee benefits

Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the profit and loss account of the year when the contributions to the said fund are due.

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done as per projected unit credit method, carried out by an independent actuary at the end of year. Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.

7. Provision for Current and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the Income Tax Act. 1961. Deferred Tax resulting from 'timing difference' between taxable and accounting income is computed using tax rates and laws that are enacted or substantively enacted by the Balance Sheet date.

Deferred tax asset is recognized only to the extent that there is reasonable certainly that asset will be realized in future.

8. Impairment

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment of the carry ing amount of the fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the assets exceeds the recoverable amount.


Mar 31, 2010

1. Basis of accounting

The-Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP), in compliance with the provisions of the Companies Act, 1956 and the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 notified by the Central Government under section 211 (3c) of the Companies Act 1956

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and disclosures of contingent liabilities on the date of the financial statements. Examples of such estimates include provision for doubtful debts/advances, future obligations in respect of retirement benefits etc. Difference if any between the actual results and estimates is recognized in the period in which the amounts are crystallized.

2. Fixed Assets and depreciation

Tangible Assets

Fixed assets other than land (including site development) are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost (freight, duties, levies etc.) of bringing the asset to its working condition for its intended use and capitalization of interest and other expenses incurred upto the date of commissioning.

Depreciation is provided on fixed assets on the Straight Line Method at the rates prescribed under Schedule XIV to the Companies Act, 1956 from the month following the month of acquisition/commissioning.

Intanqible Assets

Trade Marks/Copyrights and Brands are accounted at cost which is amortized over a period of five years.

3. Inventories

Inventories are stated at lower of cost and net realizable value. Costs are arrived at as follows:

(i) Raw materials, components, Packing material, stores and spares on first in first out basis.

(ii) Stock-in-process and finished goods taking into account the annual average cost of materials consumed, direct production expenses, interest, depreciation and related Government duties.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

4. Foreign Currency Transaction

Transactions denominated in foreign currency are recorded at the exchange rate

Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of the transactions.

Current assets and liabilities in foreign currency are converted at the exchange rate prevailing at the year end and exchange differences are recognized in the Profit and Loss Account.

5. Revenue recognition

All revenues are generally recognized on accrual basis except where there is uncertainty of ultimate realisation.

Sales are shown net of trade discounts and inclusive of Excise and other levies.

6. Retirement and other employee benefits

Provision for gratuity (unfunded) and leave encashment are determined and accrued on estimated basis.

7. Income taxes

Income Tax expense comprises of current income tax. Current income tax is computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized subject to the consideration of prudence, on timing difference being the differences between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods. Deferred tax asset is not recognized unless there are timing differences, the reversal of which will result in sufficient income or there is virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

8. Impairment

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized wheneverthe carrying amount of the assets exceeds the recoverable amount.

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