Mar 31, 2015
A. BASIS OF PREPARATION:
2 The accompanying Financial Statements have been prepared on a going
concern basis under the historical cost convention on the accrual basis
of accounting in conformity with Generally Accepted Accounting
Principles in India ("Indian GAAP").
B. VALUATION OF INVENTORIES:
Inventories of raw materials, work-in-progress, stores, finished
products and stock-in-trade are valued at the lower of cost and net
realizable value. Cost is ascertained on seasonal weighted average for
sugar and yearly average for distillery products and stores.
By-products and Scrap Stock are valued at Net realizable value.
C. FIXEDASSETS:
a) Fixed Assets are shown at cost/re-valued figures, less accumulated
depreciation. Fixed assets added during the year are valued at cost
net of CENVAT but includes all direct expenses like freight, erection
charges, pre-operative expenses and borrowing costs.
b) Expenditure including borrowing cost incurred on projects under -
implementation is shown under "Work-in-Progress" pending allocation to
the assets.
D. INTANGIBLE ASSETS:
The payment made towards good will for cane riots is amortized over a
period of 10 years in accordance with AS-26.
E. BORROWING COSTS:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets.
F. DEPRECIATION:
Depreciation on tangible assets is provided on the straight line method
over the useful life in the manner prescribed in the Schedule II of the
companies Act, 2013 effective from 1st April 2014, as against the
earlier practice of depreciating at the rates prescribed in Schedule
XIV of the Companies Act, 1956. Depreciation on addition to assets on
sale / discernment of assets is calculated on pro-rata from the month
of such addition or up to the month of such sale / discernment, as the
case may be.
The additional depreciation relating to increased value of revalued
assets is adjusted against Revaluation Reserve.
G. INVESTMENTS:
Long term Investments are accounted at Cost. The diminution in ; value
of long term investments is recognized if the decline is Other than
temporary.
H. a) REVENUE RECOGNITION:
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. Revenue from sale of goods is recognized when the significant
risks and rewards of ownership of the goods are transferred to the
customer and is stated net of trade discounts, excise duty and sales
return. Gross turnover includes excise duty but exclude sales tax. i.
Dividend income is accounted for in the year it is declared. ; ii. All
other incomes are accounted for on accrual basis.
iii. The Excise duty on sale of finished goods is deducted from the
turnover to arrive at the net sales as shown in the Statement of Profit
and loss.
iv. Inter Segmental transfer price is not recognized.
b) EXPENDITURE RECOGNITION:
i. The Cane price is written off on the basis of determination of fair
& remunerative price and agreed price if any, over and above fair &
remunerative price. ii. The Excise duty appearing in the Statement of
Profit and loss as an expense represents excise duty provision for
difference between opening and closing stock of finished goods.
I. FOREIGN CURRENCYTRANSACTIONS:
Foreign Exchange transactions are recognized based on maturity of
obligation.
J. RETIREMENT BENEFITS:
Contribution payable by the Company towards Provident fund, Gratuity,
Employees State Insurance and Superannuation fund for the year are
charged to statement of profit and loss. Gratuity is determined based
on the actuarial valuation made by an independent actuary. For leased
plant, gratuity is determined based on the demand from the lessor.
Provision for liability in respect of Leave encashment benefits are
made based on actuarial valuation made by an independent actuary.
K. SEGMENT REPORTING:
The segment reporting is in line with the accounting policies of the
company. Inter segment transactions have been accounted for based on
the price which has been arrived at considering cost for utilities and
net realizable value for by-products. Revenue and expenses that are
directly identifiable with or allocable to segments are considered for
determining the segment results. Segment assets and liabilities
include those directly identifiable with the respective segments.
Business segments are identified on the basis of the nature of
products, the risk/return profile of the individual business, the
organizational structure and the internal reporting system of the
company.
L. DEFERRED TAX:
Deferred tax is recognized on timing difference between accounting
income and the taxable income for the period and reversal of timing
differences of earlier periods and quantified using the tax rates and
laws that have been enacted / substantively enacted as at the balance
sheet date. The deferred tax assets are recognized and carried forward
to the extent that there is reasonable certainty that these would be
realized in future.
M. EARNING PER SHARE:
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
N. IMPAIRMENT OF ASSETS:
Impairment, if any, is recognized in accordance with the Accounting
Standard 28.
O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provision is recognized only when there is a present obligation as a
result of past event 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, 2014
A. BASIS OF PREPARATION:
The accompanying Financial Statements have been prepared on a going
concern basis under the historical cost convention on the accrual basis
of accounting in conformity with Generally Accepted Accounting
Principles in India ("India GAAP").
B. VALUATION OF INVENTORIES:
Inventories of raw materials, work-in-progress, stores, finished
products and stock-in-trade are valued at the lower of cost and net
realizable value. Cost is ascertained on seasonal weighted average for
sugar and yearly average for distillery products and stores.
By-products and Scrap Stock are valued at Net realizable value.
C. FIXED ASSETS:
a) Fixed Assets are shown at cost/re-valued figures, less accumulated
depreciation. Fixed assets added during the year are valued at cost net
of CENVAT but includes all direct expenses like freight, erection
charges, pre-operative expenses and borrowing costs.
b) Expenditure including borrowing cost incurred on projects under
implementation is shown under "Work-in-Progress" pending allocation to
the assets.
D. INTANGIBLE ASSETS:
The payment made towards goodwill for cane ryots is amortized over a
period of 10 years in accordance with AS-26.
E. BORROWING COSTS:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets.
F. DEPRECIATION:
Depreciation is provided under Straight Line Method at the rates /notes
prescribed in Schedule XIV to the Companies Act, 1956, on
revalued/original cost of assets as the case may be. The additional
depreciation relating to increased value of revalued assets is adjusted
against Revaluation Reserve.
G. INVESTMENTS:
Long term Investments are accounted at Cost. The diminution in value of
long term investments is provided if the decline is other than
temporary.
H. a) 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. Revenue from sale of goods is recognised when the significant
risks and rewards of ownership of the goods are transferred to the
customer and is stated net of trade discounts, excise duty and sales
return.
i. Gross turnover includes excise duty but exclude sales tax.
ii. Dividend income is accounted for in the year it is declared.
iii. All other incomes are accounted for on accrual basis.
iv. The Excise duty on sale of finished goods is deducted from the
turnover to arrive at the net sales as shown in the Statement of Profit
and Loss.
v. Inter Segmental transfer price is not recognised.
b) EXPENDITURE RECOGNITION:
i. The Cane price is written off on the basis of determination of
fair & remunerative price and agreed price over and above fair &
remunerative price.
ii. The Excise duty appearing in the Statement of Profit and
Loss as an expense represents excise duty provision for difference
between opening and closing stock of finished goods.
I. FOREIGN CURRENCY TRANSACTIONS:
Foreign Exchange transactions are recognised based on maturity of
obligation.
J. RETIREMENT BENEFITS:
Contribution payable by the Company towards Provident fund, Gratuity,
Employees State Insurance and Superannuation fund for the year are
charged to Statement of Profit and Loss. Gratuity is determined based
on the actuarial valuation made by an independent actuary .For leased
plant, gratuity is determined based on the demand from the lessor.
Provision for liability in respect of Leave encashment benefits are
made based on actuarial valuation made by an independent actuary.
K. SEGMENT REPORTING:
The Segment Reporting is inline with the accounting policies of the
company. Inter segment transactions have been accounted for based on
the price which has been arrived at considering cost for utilities and
net realizable value for by-products. Revenue and Expenses that are
directly identifiable with or allocable to segments are considered for
determining the segment results. Segment assets and liabilities
include those directly identifiable with the respective segments.
Business segments are identified on the basis of the nature of
products, the risk/return profile of the individual business, the
organizational structure and the internal reporting system of the
company.
L. DEFERRED TAX:
Deferred tax is recognized on timing difference between accounting
income and the taxable income for the period and reversal of timing
differences of earlier periods and quantified using the tax rates and
laws that have been enacted / substantively enacted as at the balance
sheet date. The deferred tax assets are recognized and carried forward
to the extent that there is reasonable certainty that these would be
realized in future.
M. EARNING PER SHARE:
Basic Earnings Per Share is calculated by dividing the Net Profit or
Loss for the period attributable to Equity Shareholders by the Weighted
Average Number of Equity Shares outstanding during the period.
For the purpose of calculating Diluted Earnings Per Share, the Net
Profit or Loss for the period attributable to Equity Shareholders and
the Weighted Average Number of Shares outstanding during the period are
adjusted for the effects of all Dilutive Potential Equity Shares.
N. IMPAIRMENT OF ASSETS:
Impairment, if any, is recognized in accordance with the Accounting
Standard 28.
O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provision is recognized only when there is a present obligation as a
result of past event 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.
(iii) Rights, Preferences and Restrictions attaching to each class of
Shares:
A. Equity Shares
The Company has only one class of Equity Shares having face value of Rs.
10 each. Each Shareholder is eligible for one vote per share. Final
Dividend is payable when it is recommended by the Board of Directors
and subject to the approval of the Members at the Annual General
Meeting. In the event of liquidation, the equity shareholders will get
the remaining assets after payment of all the preferential dues.
B. Redeemable Cumulative Preference Shares
The Redeemable Cumulative Preference Shares have a par value of Rs. 100
each. These shares carry a fixed cumulative dividend of 5% p.a. These
Shares would be redeemable at par at the end of ten years commencing
from 30.01.2006. These shares have the following preferential rights
over the equity shareholders:
a) The payment of dividend at a Fixed Rate; and
b) The return of capital on winding up of the company.
These shareholders can enforce their right of getting dividend in
priority over the equity shareholders.
The Preference Shareholders have no voting right except when the
dividend is outstanding for a period of more than 2 years in case of
cumulative preference shares. But, they have right to vote on any
resolution for winding up of the company or for the reduction /
repayment of capital.
Details of terms of repayment for the Term Loans and Security provided
in respect of the Secured Term Loans :-
Nature of Security
From Banks
i) Term loan of Rs. 1290.33 lakhs (Rs. 2622.52 lakhs) availed by the
company is secured as under :- a. Pari passu first charge on the
Company''s movable and immovable assets of Sugar Division and Distillery
Division situated at K.M.Doddi, Bharathinagara, Maddur Taluk, Mandya
District, Karnataka.
b. Pari passu second charge on the current assets of Sugar Division at
K.M.Doddi, Bharathinagara, Maddur Taluk, Mandya District, Karnataka.
c. Pledge of the 20,43,844 equity shares held by the Promoter group in
the share capital of the Company.
d. Personal Guarantee of the Managing Director and two Directors.
Repayment Terms
The Loan is under consortium comprising of State Bank of Mysore, State
Bank of Travancore, State Bank of India (erstwhile State Bank of
Indore), Syndicate Bank, The Lakshmi Vilas Bank Ltd. and IDBI Ltd.
Repayable in 20 Quarterly installments. Last installment falling due
on April 2015.
Rate of Interest : 8% p.a.
ii) Term Loan of Rs. 1192.05 lakhs (Rs. 1688.76 lakhs) availed from
Allahabad Bank is secured by pari passu first charge on the movable and
immovable assets pertaining to 26 MW Co-generation Power Plant at
K.M.Doddi, Bharathinagara, Maddur Taluk, Mandya District, Karnataka and
Personal Guarantee of the Managing Director and three Directors.
Repayable in 24 Quarterly installments. Last installment falling due
on March 2016.
Rate of Interest : BR 2.25% p.a.
iii) Term loan of Rs. 5200.57 lakhs (Rs. Nil) availed from Allahabad Bank
is secured by assignment of future receivables of Distillery division
and is further secured by personal guarantee of Managing Director and
three Directors. The loan is also additionally secured by a personal
property of Managing Director.
Repayable in 16 Quarterly installments. Last installment falling due
on June 2017. Rate of Interest : BR 4.25% p.a.
iv) Term Loan of Rs. 2231.25 lakhs (Rs. 2826.25 lakhs) is availed from The
Karnataka State Co-Operative Apex Bank Ltd is secured by first charge
on the Plant and Machinery in connection with Refined Sugar Unit and
modernisation along with energy efficient equipment situtated at K.M.
Doddi, Bharathinagara, Maddur Taluk, Mandya District, Karnataka and
immovable property situated at Gangadhar Chetty Lay-out, Ulsoor,
Bangalore and Defence Colony, HAL II Stage, Bangalore, Karnataka.
Repayable in 20 Quarterly installments. Last Installment falling due
on November 2017.
Rate of Interest : 13.50% p.a.
Note: The amount repayable within twelve months is Rs. 4116.49 Lakhs (Rs.
2362.20 Lakhs), grouped under Other Current Liabilities in Note No. 10
From Others
i) Terms loan of Rs. 1925.00 Lakhs (Rs. 1925.00 Lakhs) availed from IDFC
Ltd is secured by pari passu first charge on the movable and immovable
assets pertaining to 26 MW Co-Generation Power Plant at K.M.Doddi,
Bharathinagara, Maddur taluk, Mandya District, Karnataka Repayable in
23 Quarterly installments. Last installment falling due on October
2016.
Rate of Interest : 12.54% p.a.
ii) Term loan of Rs. Nil (Rs. 528.85 Lakhs) availed from IFCI Limited is
secured on pari passu basis with other bankers as stated above in
security particulars of loans under consortium .
The loan was Fully paid during June 2013.
iii) a) Term loan of Rs. 2515.75 Lakhs (Rs. 2515.75 Lakhs) availed from
Sugar Development Fund (SDF) Govt. of India (Co-gen power project loan)
is secured by exclusive second charge by way of mortgage on the
company''s immovable properties of sugar factory at K.M.Doddi,
Bharathinagara, Maddur Taluk, Mandya District,Karnataka
Repayable in 10 Half-yearly installments. Last installment falling due
on March 2016 Rate of Interest : 7% p.a.
b) Term loan of Rs. 323.51 Lakhs (Rs. 323.51 Lakhs) availed from Sugar
Development Fund (SDF) Govt. of India (Co-gen power project loan) is
secured by exclusive second charge by way of mortgage on the company''s
immovable properties of sugar factory at K.M.Doddi, Bharathinagara,
Maddur Taluk, Mandya District,Karnataka Repayable in 10 Half-yearly
installments. Last installment falling due on November 2016.
Rate of Interest : 7% p.a.
iv) a) Term loan of Rs. 80.00 Lakhs (Rs. 80.00 Lakhs) availed from Sugar
Development Fund (SDF) Govt. of India (Modernisation of Sugar Plant) is
secured by exclusive Second charge on the company''s immovable
properties of Sugar Factory at K.M.Doddi, Bharathinagara, Maddur Taluk,
Mandya District, Karnataka.
Repayable in 4 Yearly installments. Last installment fallen due on
March 2014.
Rate of Interest : 7% p.a.
b) Term loan of Rs. 75.00 Lakhs (Rs. 75.00 Lakhs) availed from Sugar
Development Fund (SDF) Govt. of India (Cane Development) is secured by
exclusive Second charge on the company''s immovable properties of Sugar
Factory at K.M.Doddi, Bharathinagara, Maddur Taluk, Mandya District,
Karnataka.
Repayable in 4 Yearly installments. Last
installment falling due on July 2014.
Rate of Interest : 7% p.a.
v) Term loan of Rs. 1200.00 Lakhs (Rs. 2000.00 Lakhs) availed from IFCI
Factors Ltd is secured by
a) Equitable Mortgage on Immovable property situated at Richmond Road,
Banagalore
b) Equitable Mortgage on Managing Director''s Land & Building situated
at Dr. Nanjappa Road, Coimbatore.
c) Personal Guarantee of Managing Director
Repayable in 10 Quarterly installments. Last installment falling due
on July 2015.
Rate of Interest : 15% p.a.
Note: The amount repayable within twelve months is Rs. 4552.59 Lakhs (Rs.
3766.98 Lakhs), shown as current maturities of Long-term debt under
Other Current Liabilities in Note no.10. The said current maturities
includes overdue amount of Rs. 700.00 Lakhs and Rs. 1738.13 Lakhs payable
to IDFC Ltd and SDF respectively.
Note : 35 - Disclosure as required under clause 32 of the listing
agreement: There are no amount of loans/advances in the nature of loans
outstanding from Subsidiaries and Associates .
Note : 36 - Disclosure pursuant to AS-28 on ''Impairment of Assets'':
During the year, review has been done for carrying value of the assets
for finding out the impairment, if any. The review has not revealed any
impairment of assets in terms of AS-28.
Mar 31, 2013
A. BASIS OF PREPARATION:
The accompanying Financial Statements have been prepared on a going
concern basis underthe historical cost convention on the accrual basis
of accounting in conformity with Generally Accepted Accounting
Principles in India ("India GAAP").
B. VALUATION OF INVENTORIES:
Inventories of raw materials, work-in-progress, stores, finished
products and stock-in-trade are valued at the lower of cost and net
realizable value. Cost is ascertained on seasonal weighted average for
sugar and yearly average for distillery products and stores.
By-products and Scrap Stock are valued at Net realizable value.
C. FIXED ASSETS:
a) Fixed Assets are shown at cost/re-valued figures, less accumulated
depreciation. Fixed assets added during the year are valued at cost net
of CENVAT but includes all direct expenses like freight, erection
charges, pre-operative expenses and borrowing costs.
b) Expenditure including borrowing cost incurred on projects under
implementation is shown under "Work-in-Progress" pending allocation to
the assets.
D. INTANGIBLE ASSETS:
The payment made towards goodwill for cane ryots is amortized over a
period of 10 years in accordance with AS-26.
E. BORROWING COSTS:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets.
F. DEPRECIATION:
Depreciation is provided under Straight Line Method at the rates /
notes prescribed in Schedule XIV to the Companies Act, 1956, on
revalued/original cost of assets as the case may be. The additional
depreciation relating to increased value of revalued assets is adjusted
against Revaluation Reserve.
G. INVESTMENTS:
Long term Investments are accounted at Cost. The diminution in value of
long term investments is provided if the decline is other than
temporary.
H. a) 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. Revenue from sale of goods is recognised when the significant
risks and rewards of ownership of the goods are transferred to the
customer and is stated net of trade discounts, excise duty and sales
return.
i. Gross turnover includes excise duty but exclude sales tax.
ii. Dividend income is accounted for in the year it is declared.
iii. All other incomes are accounted for on accrual basis.
iv. The Excise duty on sale of finished goods is deducted from the
turnover to arrive at the net sales as shown in the Statement of Profit
and Loss.
v. Inter Segmental transfer price is not recognised.
b) EXPENDITURE RECOGNITION:
i. The Cane price is written off on the basis of determination of fair
& remunerative price and agreed price over and above fair &
remunerative price.
ii. The Excise duty appearing in the Statement of Profit and Loss as an
expense represents excise duty provision for difference between opening
and closing stock of finished goods.
I. FOREIGN CURRENCY TRANSACTIONS:
Foreign Exchange transactions are recognised based on maturity of
obligation.
J. RETIREMENT BENEFITS:
Contribution payable by the Company towards Provident fund, Gratuity,
Employees State Insurance and Superannuation fund for the year are
charged to Statement of Profit and Loss. Gratuity is determined based
on the actuarial valuation made by an independent actuary .For leased
plant, gratuity is determined based on the demand from the lessor.
Provision for liability in respect of Leave encashment benefits are
made based on actuarial valuation made by an independent actuary.
K. SEGMENT REPORTING:
The Segment Reporting is inline with the accounting policies of the
company. Inter segment transactions have been accounted for based on
the price which has been arrived at considering cost for utilities and
net realizable value for by-products. Revenue and Expenses that are
directly identifiable with or allocable to segments are considered for
determining the segment results. Segment assets and liabilities
include those directly identifiable with the respective segments.
Business segments are identified on the basis of the nature of
products, the risk/return profile of the individual business, the
organizational structure and the internal reporting system of the
company.
L. DEFERREDTAX:
Deferred tax is recognized on timing difference between accounting
income and the taxable income for the period and reversal of timing
differences of earlier periods and quantified using the tax rates and
laws that have been enacted / substantively enacted as at the balance
sheet date. The deferred tax assets are recognized and carried forward
to the extent that there is reasonable certainty that these would be
realized in future.
M. EARNING PER SHARE:
Basic Earnings Per Share is calculated by dividing the Net Profit or
Loss for the period attributable to Equity Shareholders by the Weighted
Average Number of Equity Shares outstanding during the period.
For the purpose of calculating diluted Earnings Per Share, the net
profit or loss for the period attributable to Equity Shareholders and
the Weighted Average Number of Shares outstanding during the period are
adjusted for the effects of all Dilutive Potential Equity Shares.
N. IMPAIRMENT OF ASSETS:
Impairment, if any, is recognized in accordance with the Accounting
Standard 28.
O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provision is recognized only when there is a present obligation as a
result of past event 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
nordisclosed in the financial statements.
Mar 31, 2012
A. BASIS OF PREPARATION:
The accompanying Financial Statements have been prepared on a going
concern basis under the historical cost convention on the accrual basis
of accounting in conformity with Generally Accepted Accounting
Principles in India ("India GAAP").
B. VALUATION OF INVENTORIES:
Inventories of raw materials, work-in-progress, stores, finished
products and stock-in-trade are valued at the lower of cost and net
realizable value. Cost is ascertained on seasonal weighted average for
sugar and yearly average for distillery products and stores.
By-products and Scrap Stock are valued at Net realizable value.
C. FIXED ASSETS:
a) Fixed Assets are shown at cost/re-valued figures, less accumulated
depreciation. Fixed assets added during the year are valued at cost net
of CENVAT but includes all direct expenses like freight, erection
charges, pre-operative expenses and borrowing costs.
b) Expenditure including borrowing cost incurred on projects under
implementation is shown under "Work-in-Progress" pending allocation to
the assets.
D. INTANGIBLE ASSETS:
The payment made towards goodwill for cane ryots is amortized over a
period of 10 years in accordance with AS-26.
E. BORROWING COSTS:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets.
F. DEPRECIATION:
Depreciation is provided under Straight Line Method at the rates /notes
prescribed in Schedule XIV to the Companies Act, 1956, on
revalued/original cost of assets as the case may be. The additional
depreciation relating to increased value of revalued assets is adjusted
against Revaluation Reserve.
G. INVESTMENTS:
Long term Investments are accounted at Cost. The diminution in value of
long term investments is provided if the decline is other than
temporary.
H.a) 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. Revenue from sale of goods is recognised when the significant
risks and rewards of ownership of the goods are transferred to the
customer and is stated net of trade discounts, excise duty and sales
return.
i. Gross turnover includes excise duty but exclude sales tax.
ii. Dividend income is accounted for in the year it is declared.
iii. All other incomes are accounted for on accrual basis.
iv. The Excise duty on sale of finished goods is deducted from the
turnover to arrive at the net sales as shown in the Profit and loss
account.
v. Inter Segmental transfer price is not recognised,
b) EXPENDITURE RECOGNITION:
i. The Cane price is written off on the basis of determination of fair
& remunerative price and agreed price over and above fair &
remunerative price.
ii. The Excise duty appearing in the Statement of Profit and Loss as
an income represents excise duty provision for difference between
opening and closing stock of finished goods.
I. FOREIGN CURRENCY TRANSACTIONS:
Foreign Exchange transactions are recognised based on maturity of
obligation.
J. RETIREMENT BENEFITS:
Contribution payable by the Company towards Provident fund, Gratuity,
Employees State Insurance and Superannuation fund for the year are
charged to Statement of Profit and Loss. Gratuity is determined based
on the actuarial valuation made by an independent actuary. For leased
plant, gratuity is determined based on the demand from the lessor.
Provision for liability in respect of Leave encashment benefits are
made based on actuarial valuation made by an independent actuary.
K. SEGMENT REPORTING:
The segment reporting is inline with the accounting policies of
theCompany. Inter segment transactions have been accounted for based on
the price which has been arrived at considering cost for utilities and
net realizable value for by-products. Revenue and expenses that are
directly identifiable with or allocable to segments are considered for
determining the segment results. Segment assets and liabilities include
those directly identifiable with the respective segments. Business
segments are identified on the basis of the nature of products, the
risk/return profile of the individual business, the organizational
structure and the internal reporting system of the Company.
L. DEFERRED TAX:
Deferred tax is recognized on timing difference between accounting
income and the taxable income for the period and reversal of timing
differences of earlier periods and quantified using the tax rates and
laws that have been enacted / substantively enacted as at the balance
sheet date. The deferred tax assets are recognized and carried forward
to the extent that there is reasonable certainty that these would be
realized in future.
M. EARNING PER SHARE:
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding duringthe period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
N. IMPAIRMENT OF ASSETS:
Impairment, if any, is recognized in accordance with the
AccountingStandard28.
O. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS: Provision
is recognized only when there is a present obligation as a result of
past event 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, 2011
1. BASIS OF PREPARATION:
The accompanying Financial Statements have been prepared on a going
concern basis under the historical cost convention on the accrual basis
of accounting in conformity with Generally Accepted Accounting
Principles in India ("India GAAP").
2. VALUATION OF INVENTORIES:
Inventories of raw materials, work-in-progress, stores, finished
products and stock-in-trade are valued at the lower of cost and net
realizable value. Cost is ascertained on seasonal weighted average for
sugar and yearly average for distillery products and stores.
By-products are valued at Net realizable value.
3. FIXED ASSETS:
a) Fixed Assets are shown at cost/re-valued figures, less accumulated
depreciation. Fixed assets added during the year are valued at cost net
of CENVAT but includes all direct expenses like freight, erection
charges, pre-operative expenses and borrowing costs.
b) Expenditure including borrowing cost incurred on projects under
implementation is shown under "Work- in-Progress" pending allocation to
the assets.
4. INTANGIBLE ASSETS:
The payment made towards goodwill for cane ryots is amortized over a
period of 10 years in accordance with AS-26.
5. BORROWING COSTS:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets.
6. DEPRECIATION:
Depreciation is provided under Straight Line Method at the rates /notes
prescribed in Schedule XIV to the Companies Act, 1956, on
revalued/original cost of assets as the case may be. The additional
depreciation relating to increased value of revalued assets is adjusted
against Revaluation Reserve.
7. INVESTMENT
Long term Investments are accounted at Cost. The diminution, if any, in
value of long term investments is provided if such decline is other
than temporary.
8. a) 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. Revenue from sale of goods is recognised when the significant
risks and rewards of ownership of the goods are transferred to the
customer and is stated net of trade discounts, excise duty, sales
return.
i. Gross turnover includes excise duty but exclude sales tax.
ii. Dividend income is accounted for in the year it is declared.
iii. All other incomes are accounted for on accrual basis.
iv. The Excise duty on sale of finished goods is deducted
from the turnover to arrive at the net sales as shown in the
Profit and loss account.
b) EXPENDITURE RECOGNITION:
i. The Cane price is written off on the basis of deter- mination of
Fair & Remunerative Price and agreed price over and above Fair &
Remunerative Price.
ii. The Excise duty appearing in the Profit and loss account as an
income represents excise duty provision for difference between opening
and closing stock of finished goods.
9. FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are accounted at the exchange rate ruling
on the date of the transactions. Foreign currency monetary items as at
the date of Balance sheet are restated using the closing exchange rate
or at the rate that is likely to be realized from/received to disburse.
10. RETIREMENT BENEFITS:
Contribution payable by the Company towards Provident fund, Gratuity,
Employees State Insurance and Superannuation fund for the year are
charged to profit and loss account. Gratuity is determined based on the
actuarial valuation made by an independent actuary .For leased plant,
gratuity is determined based on the demand from the lessor.
Provision for liability in respect of Leave encashment benefits are
made based on actuarial valuation made by an independent actuary.
11. SEGMENT REPORTING
The segment reporting is inline with the accounting policies of the
company. Inter segment transactions have been accounted for based on
the price which has been arrived at considering cost for utilities and
net realizable value for by- products. Revenue and expenses that are
directly identifiable with or allocable to segments are considered for
determining the segment results. Segment assets and liabilities include
those directly identifiable with the respective segments. Business
segments are identified on the basis of the nature of products, the
risk/return profile of the individual business, the organizational
structure and the internal reporting system of the company.
12. DEFERRED TAX
Deferred tax is recognized on timing difference between accounting
income and the taxable income for the period and reversal of timing
differences of earlier periods and quantified using the tax rates and
laws that have been enacted / substantively enacted as at the balance
sheet date. The deferred tax assets are recognized and carried forward
to the extent that there is reasonable certainty that these would be
realized in future.
13. EARNING PER SHARE:
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
14. IMPAIRMENT OF ASSETS:
Impairment, if any, is recognized in accordance with the Accounting
Standard 28.
15. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provision is recognized only when there is a present obligation as a
result of past event 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
1. BASIS OF PREPARATION:
The accompanying Financial Statements have been prepared on a going
concern basis under the historical cost convention on the accrual basis
of accounting in conformity with Generally Accepted Accounting
Principles in India ("India GAAP").
2. VALUATION OF INVENTORIES:
Inventories of raw materials, work-inprogress, stores, finished
products and stock-in-trade are valued at the lower of cost and net
realizable value. Cost is ascertained on seasonal weighted average for
sugar and yearly average for distillery products and stores.
By-products are valued at Net realizable value.
3. FIXED ASSETS:
a) Fixed Assets are shown at cost/re-valued figures, less accumulated
depreciation. Fixed assets added during the year are valued at cost net
of CENVAT but includes all direct expenses like freight, erection
chargs, pre operative expenses and borrowing costs.
b) Expenditure including borrowing cost incurred on projects under
implementation is shown under "Work-in-Progress" pending allocation to
the assets.
4. INTANGIBLE ASSETS:
The payment made towards goodwill for cane ryots is amortized over a
period of 10 years in accordance with AS-26.
5. BORROWING COSTS:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets.
6. DEPRECIATION:
Depreciation is provided under Straight Line Method at the rates/notes
prescribed in Schedule XIV to the Companies Act, 1956, on
revalued/original cost of assets as the case may be. The additional
depreciation relating to increased value of revalued assets is adjusted
against Revaluation Reserve.
7. Long term Investments are accounted at Cost. The diminution, if
any, in value of long term investments is provided if such decline is
other than temporary.
8. a) 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. Revenue from sale of goods is recognised when the significant
risks and rewards of ownership of the goods are transferred to the
customer and is stated net of trade discounts, excise duty, sales
return.
i. Gross turnover includes excise duty but exclude sales tax.
ii. Dividend income is accounted for in the year it is declared.
iii. All other incomes are accounted for on accrual basis.
iv. The Excise duty on sale of finished goods is deducted from the
turnover to arrive at the net sales as shown in the Profit and Loss
account. v. Inter segmental transfer price is not recognised. b)
Expenditure Recognition:
i) The Cane price is written off on the basis of determination of
statutory price and agreed price over and above statutory price.
ii) The Excise duty appearing in the Profit and loss account as an
expenditure represents excise duty provision for difference between
opening and closing stock of finished goods.
9. FOREIGH CURRENCY TRANSACTIONS:
Foreign currency transaction are accounted at the exchange rate ruling
on the date of the transactions. Foreign currency monetary items as at
the date of Balance sheet are restated using the closing exchange rate
or at the rate that is likely to be realized from/received to disburse.
10. RETIREMENT BENEFITS:
Contribution payable by the Company towards Provident fund, Gratuity,
Employees State Insurance and Superannuation fund for the year are
charged to profit and loss account. Gratuity is determined based on the
actuarial valuation made by an independent actuary. For leased plant,
gratuity is determined based on the demand from the lessor. Provision
for liability in respect of Leave encashment benefits are made based on
actuarial valuation made by an independent actuary.
11. The segment reporting is inline with the accounting policies of
the company. Inter segment transactions have been accounted for based
on the price which has been arrived at considering cost for utilities
and net realizable value for by-products. Revenue and expenses that
are directly identifiable with or allocable to segments are considered
for determining the segment results. Segment assets and liabilities
include those directly identifiable with the respective segments.
Business segments are identified on the basis of the nature of
products, the risk/return profile of the individual business, the
organizational structure and the internal reporting system of the
company.
12. Deferred tax is recognized on timing difference between accounting
income and the taxable income for the period and reversal of timing
differences of earlier periods and quantified using the tax rates and
laws that have been enacted/ substantively enacted as at the balance
sheet date. The deferred tax assets are recognized and carried forward
to the extent that there is reasonable certainty that these would be
realized in future.
13. EARNING PER SHARE:
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholder and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
14. IMPAIRMENT OF ASSETS:
Impairment, if any, is recognized in accordance with the Accounting
Standard 28.
15. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provision is recognized only when there is a present obligation as a
result of past event 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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