Accounting Policies of The Ravalgaon Sugar Farm Ltd. Company

Mar 31, 2025

Note 1 : Background and principle activities

The Ravalgaon Sugar Farm Limited (''the Company'') is a public limited Company incorporated and domiciled in India and has its registered office at P.O. Ravalgaon, Taluka Malegaon, Nashik, Maharashtra, 423108, Maharashtra, India. The Company is listed on Bombay Stock Exchange.

The company has been inactive during the quarter and year ended March 31, 2025. As the company is inactive and has no operating segments, segment information is not disclosed.

Note 2 : Significant Accounting Policies followed by the Company

a) Basis of Preparation

i) Compliance with Ind AS

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with the Companies (Indian Accounting Standards) Rules, 2015 as amended rules and other relevant provisions of the Act.

The Company''s Financial Statements are presented in Indian Rupees (^), which is also its functional currency and all values are rounded to the nearest Lakhs (00,000),except when otherwise indicated.

ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

â¢ Certain financial assets that are measured at fair value;

â¢ Assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

b) Summary of Significant Accounting Policies

i) Current non-current classification

The Company presents assets and liabilities in the Balance Sheet based on Current/ Non-Current classification.

An asset is treated as Current when it is -

- Expected to be realised or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

ii) Use of estimates and judgements

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

iii) Foreign Currency Translation Transactions and balances

of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in Profit or Loss Account.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the statement of profit and loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of Profit and Loss on a net basis within other gains / (losses).

iv) Revenue Recognition

Revenue from sale of goods is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration entitled in exchange for those goods. The Company is generally the principal as it typically controls the goods before transferring them to the customer.

Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with respect to the goods shipped.

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring distinct goods to a customer as specified in the contract.

Interest Income is recognized on time proportion basis.

Dividend Income is recognized, at the time when they are actually received.

v) Income Tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences. Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the financial statement. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are excepted to apply when the related deferred income tax assets is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only if, it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively Minimum Alternate Tax (MAT) credit is recognised as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

vi) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

vii) Financial Assets

(a) Initial Recognition and Measurement

All Financial Assets are initially recognised at fair value. Transaction costs that are directly attributable to the acquisition or issue of Financial Assets, which are not at Fair Value Through Profit or Loss, are adjusted to the fair value on initial recognition.

(b) Subsequent Measurement

(i) Financial assets at amortised cost

Financial assets are subsequently measured at amortised 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 the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets 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 the principal amount outstanding and selling financial assets.

(iii) Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless they are measured at amortised 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 or loss are immediately recognised in statement of profit and loss

viii) Cash Flow Statements

Cash flows are prepared using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flow from operating, investing and financing activities of Company are segregated.

ix) Inventories

Inventories of Raw Materials, Work-in-Progress, Stores and spares, Finished Goods and Stock-in-trade are stated ''at cost or net realisable value, whichever is lower''. Goods-in-Transit are stated ''at cost''. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost formulae used are ''First in-First-out'', ''Weighted Average cost''. Due allowance is estimated and made for defective and obsolete items, wherever necessary.

Following arre the general practice accepted by the company for valuation
Sr. No.	Type of Inventory	Valuation Methodology
1	Stores and Spares	At Cost
2	Raw Materials	At Cost
3	Finished Goods	At lower of cost or net realizable value

x) Property, Plant and Equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at April 1, 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives or, in the case of certain leased furniture, fittings and equipment, the shorter lease term as follows:

Asset Class

Useful Life

Freehold land Leasehold land Buildings

Furniture and fixtures Office equipments Vehicles

As per lease life 60 Years 10 Years 5 Years 8 Years

xi) Impairment of Assets

At each Balance sheet date, the management reviews the carrying amount of its assets and goodwill included in each Cash generating Unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss.Recoverable amount of an asset is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value and the risks specific to the asset. Reversal of impairment loss is recognized immediately as income in the profit and loss account.

xii) Investments

Long-term investments are carried at cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of investments, such reduction being determined and made for each investment individually.

Current Investments are valued at lower of cost or fair value.

xiii) Borrowing costs

Borrowing cost directly attributable to acquisition of Qualifying Fixed Assets is capitalised. All other borrowing costs are charged to Profit and Loss Account

xiv) Trade and Other Payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid on recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.

xv) Provisions and Contingent Liabilities

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed upon the occurrence or non occurrence of one or more uncetain furture events not wholly within the control of the Company.

xvi) Employee Benefits Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

Gratuity obligations

In respect of Post employment benefits viz. Gratuity, the Company has a master policy with LIC under Group Gratuity Scheme for its employees. The company used to provide / contribute to LIC Group Gratuity for future payments of retirement gratuity to the employees as determined by Management.

The Company provides for the liability towards the said plans on the basis of actuarial valuation carried out yearly as at the reporting date, by an independent qualified actuary using the projected unit-credit method.

The obligation towards the said benefits is recognised in the balance sheet, at the present value of the defined benefit obligations. The present value of the said obligation is determined by discounting the estimated future cash outflows.

The interest expense is calculated by applying the above metioned discount rate to the defined benefit obligations liability. The interest expense on the defined benefit liability is recognised in the statement of profit and loss. However, the related re-measurements of the defined benefit liability is recognised directly in the other comprehensive income in the period in which it arises. The said re-measurements comprise of actuarial gains and losses (arising from experience adjustments and changes in actuarial assumptions). Re-measurements are not re-classified to the statement of profit and loss in any of the subsequent periods.

xvii) Segment reporting

Earlier the company had two reportable segments in the form of sugar and confectionery. But the sugar factory was not opearting since FY 2013-14. It was subsequently sold in September 2018. Similary the candy sugar plant has not been in operation since FY 2004-05 and during the financial year 2023-24, the company has sold its trademarks, recipes and intellectual property related to its confectionery business, to Reliance Consumer Products Limited. Consequently, the company has been inactive during the quarter ended March 31, 2025. As the company was inactive and had no operating segments, segment information is not disclosed.

xviii) Contributed Equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

i) Earnings per Share

Basic earnings per share is calculated by dividing:

- The profit attributable to owners of the Company

- By the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year.

xix) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

ii) Dividends to shareholders

Annual dividend distribution to the shareholders is recognised as a liability in the period in which the dividends are approved by shareholders. Any interim dividend paid is recognised on approval by board of directors. Dividend payable and corresponding tax on dividend distribution is recognised directly in equity.

xx) Corporate Social Responsibility

A company satisfying any of the following criteria during the immediately preceding financial year is required to comply with CSR provisions specified under section 135(1) of the Companies Act, 2013 read with the Companies (CSR Policy) Rules, 2014 made thereunder:

(i) net worth of rupees five hundred crore or more, or

(ii) turnover of rupees one thousand crore or more, or

(iii) net profit of rupees five crore or more.

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on Corporate Social Responsibility (CSR) activities.

As the company has not exceeded the thresshold limit specified under section 135(1) of the Companies Act, 2013, hence it has not spent any amount towards CSR expenditure for the year ended on 31st March, 2025.

xxi) Rounding off Amounts

All amounts disclosed in the Financial Statements and Notes have been rounded off to the nearest lakh rupees upto two decimal places as per the requirement of Schedule III, unless otherwise stated.

c) Additional Notes to Accounts i) Note on Going Concern

As of March 31, 2025, the Company reported a net loss of ^201.78 Lakhs for the year; however, its net worth remains robust at ^1,509.09 Lakhs. Despite the loss, management believes the Company has sufficient resources to continue operations and does not foresee any significant doubt about its ability to operate as a going concern. This view is supported by the fact that the Company continues to own the operating assets of the confectionery business as well as other assets that can be utilized for future activities. Based on the above facts, the management believes that the Company will continue to meet its obligations as they become due. Therefore, the financial statements have been prepared on a going concern basis, assuming the continuing availability of funding, operational viability, and the ability to generate future cash flows. The Company continues to assess and monitor its circumstances to ensure its going concern status is maintained.

Mar 31, 2024

Note 2: Significant Accounting Policies followed by the Company

a) Basis of Preparation

i) Compliance with Ind AS

The Company''s Financial Statements are presented in Indian Rupees (^), which is also its functional currency and all values are rounded to the nearest Lakhs (''00,000''),except when otherwise indicated.

ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

â¢ Certain financial assets that are measured at fair value;

â¢ Assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

b) Summary of Significant Accounting Policies

i) Current non-current classification

The Company presents assets and liabilities in the Balance Sheet based on Current/ Non-Current classification.

An asset is treated as Current when it is -

- Expected to be realised or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

ii) Use of estimates and judgements

iii) Foreign Currency Translation Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in Profit or Loss Account.

iv) Revenue Recognition

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring distinct goods to a customer as specified in the contract.

Interest Income is recognized on time proportion basis.

Dividend Income is recognized, at the time when they are actually received.

v) Income Tax

Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the financial statement. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are excepted to apply when the related deferred income tax assets is realised or the deferred income tax liability is settled.

vi) Cash and Cash Equivalents

vii) Financial Assets

(a) Initial Recognition and Measurement

(b) Subsequent Measurement

(i) Financial assets at amortised cost

(ii) Financial assets at fair value through other comprehensive income

(iii) Financial assets at fair value through profit or loss

viii) Cash Flow Statements

ix) Inventories

x) Property, Plant and Equipment

Transition to Ind AS

Depreciation methods, estimated useful lives and residual value

xi) Impairment of Assets

xii) Investments

Current Investments are valued at lower of cost or fair value.

xiii) Borrowing costs

Borrowing cost directly attributable to acquisition of Qualifying Fixed Assets is capitalised. All other borrowing costs are charged to Profit and Loss Account

xiv) Trade and Other Payables

Mar 31, 2023

Note 2: Significant Accounting Policies followed by the Company

a) Basis of Preparation

i) Compliance with ind AS

The Company''s Financial Statements are presented in Indian Rupees (^), which is also its functional currency and all values are rounded to the nearest Lacs (00,000),except when otherwise indicated.

ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

â¢ Certain financial assets that are measured at fair value;

â¢ Assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

b) Summary of Significant Accounting Policies

i) Current non-current classification

The Company presents assets and liabilities in the Balance Sheet based on Current/ Non-Current classification.

An asset is treated as Current when it is -

- Expected to be realised or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

ii) Use of estimates and judgements

iii) Foreign Currency Translation Transactions and balances

iv) Revenue Recognition

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring distinct goods to a customer as specified in the contract.

Interest Income is recognized on time proportion basis.

Dividend Income is recognized, at the time when they are actually received.

v) income Tax

vi) Cash and Cash Equivalents

vii) Financial Assets

(a) Initial Recognition and Measurement

(b) Subsequent Measurement

(i) Financial assets at amortised cost

(ii) Financial assets at fair value through other comprehensive income

(iii) Financial assets at fair value through profit or loss

viii) Cash Flow Statements

ix) inventories

x) Property, Plant and Equipment

Transition to Ind AS

Depreciation methods, estimated useful lives and residual value

xi) impairment of Assets

xii) investments

xiii) Borrowing costs

Borrowing cost directly attributable to acquisition of Qualifying Fixed Assets is capitalised. All other borrowing costs are charged to Profit and Loss Account

xiv) Trade and Other Payables

Mar 31, 2016

1 Significant Accounting Policies :

a. Basis of Accounting:

The financial statements are prepared in accordance with generally accepted accounting principles in India. The financial statements have been prepared in all material respects in accordance with the accounting standards as specified under Section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) rules, 2014. Financial statements are prepared on historical cost basis and as a going concern. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

b. Use of Estimates:

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

c. Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred up to the date of commissioning.

d. Depreciation:

i Depreciation on Fixed Assets is charged in the accounts on the Straight Line Method in accordance with the Schedule II of the Companies Act, 2013.

ii Depreciation in respect of each individual item of asset costing up to Rs. 5000/- is provided @ 100% in the year of purchase.

iii Software is amortized over 3 years from the date of implementation.

e. Investments:

Long Term Investments are valued at costs. Provision for diminution in value of investments is made if, in the opinion of the management, the diminution is of a permanent nature.

Current Investments are valued at lower of cost or fair value.

f. Inventories:

i Stores, spares, packing materials, loose tools and raw materials are valued at cost or net realizable value whichever is lower, by applying the First In First Out (FIFO) Method.

ii Finished goods are valued at Cost or Net Realizable Value whichever is lower.

iii Work in progress / process is valued at lower of cost or net realizable value.

iv Estimated quantities of saleable by-products i.e. Molasses, Bagasse and Treated Dry Press mud are valued at estimated Net Realizable Value.

g. Revenue Recognition:

i The company recognizes revenue from sale of products upon dispatch/delivery of the goods coupled with transfer of title to the customers.

ii Revenue from service is recognized on rendering of services to customers.

iii Interest Income is recognized on time proportion basis.

iv Dividend Income is recognized, at the time when they are declared.

h. Foreign Currency Transaction:

i Foreign currency transactions are accounted at the rates prevailing on the date of transaction.

ii Monetary Assets and Liabilities denominated in foreign currencies are translated at the exchange rate prevailing on the Balance Sheet date. Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted for in the Profit and Loss Account.

i. Employee Benefits:

i Short Term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account for the year in which the related service is rendered.

ii In respect of Post employment benefits viz. Gratuity, the Company has a master policy with LIC under Group Gratuity Scheme for its employees. The company provides / contributes to LIC Group Gratuity Scheme for future payments of retirement gratuity to the employees as determined by Management.

iii Other Long term benefits viz. Leave Encashment are recognized as an expense in the Profit and Loss Account for the year in which the employee has rendered service. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses are charged to the Profit and Loss Account.

iv Companyâs contribution paid / payable to defined contribution schemes such as Provident Fund, Superannuation are charged to Profit and Loss Account.

j. Taxation:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from âtiming differenceâ between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent there is reasonable certainty / virtual certainty, as the case may be, that the asset will be realized against future taxable profits.

k. Impairment of Assets:

At each Balance sheet date, the management reviews the carrying amount of its assets and goodwill included in each Cash generating Unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount of an asset is the higher of an assetâs net selling price and value in use. In assessing value in use, the estimated future cash flows from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value and the risks specific to the asset. Reversal of impairment loss is recognized immediately as income in the profit and loss account.

l. Operating Lease Granted:

Lease arrangements where the risk and rewards incident to the ownership of an asset substantially vest with the lessor, are recognized as operating lease. Lease rentals under operating lease are recognized in profit and loss account on a straight-line basis.

m. Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes to Accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

n. Earnings per Share:

The Basic & Diluted Earnings Per Share (âEPSâ) is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

o. Cane Price:

Purchase of sugarcane for the season is accounted for on an estimated basis as per the Sugarcane price policy announced by the Company. The difference in price is adjusted in the books of accounts in the year the final price is determined by the Company, as and when it crystallizes, and in certain cases at a fixed price as agreed upon.

There is no change in the shares outstanding at the beginning and at the end of the reporting period & immediately preceding reporting period Terms Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.50 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

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 of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

Mar 31, 2015

A. Basis of Accounting:

The financial statements are prepared in accordance with generally accepted accounting principles in India. The financial statements have been prepared in all material respects in accordance with the accounting standards as specified under section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) rules, 2014. Financial statements are prepared on historical cost basis and as a going concern. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

b. Use of Estimates:

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

c. Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred up to the date of commissioning.

d. Depreciation:

i Depreciation on Fixed Assets is charged in the accounts on the Straight Line Method in accordance with the Schedule II of the Companies Act, 2013.

ii Depreciation in respect of each individual item of asset costing up to Rs. 5000/- is provided @ 100% in the year of purchase.

iii Software is amortised over 3 years from the date of implementation.

e. Investments:

Long Term Investments are valued at costs. Provision for diminution in value of investments is made if, in the opinion of the management, the diminution is of a permanent nature.

Current Investments are valued at lower of cost or fair value.

f. Inventories:

i Stores, spares, packing materials, loose tools and raw materials are valued at cost or net realisable value whichever is lower, by applying the First In First Out (FIFO) Method.

ii Finished goods are valued at Cost or Net Realisable Value whichever is lower.

iii Work in progress / process is valued at lower of cost or net realisable value.

iv Estimated quantities of saleable by-products i.e. Molasses, Bagasse and Treated Dry Press mud are valued at estimated Net Realisable Value.

g. Revenue Recognition:

i The company recognizes revenue from sale of products upon dispatch/delivery of the goods coupled with transfer of title to the customers.

ii Revenue from service is recognized on rendering of services to customers.

iii Interest Income is recognized on time proportion basis.

iv Dividend Income is recognized, at the time when they are declared.

h. Foreign Currency Transaction:

i Foreign currency transactions are accounted at the rates prevailing on the date of transaction.

ii Monetary Assets and Liabilities denominated in foreign currencies are translated at the exchange rate prevailing on the Balance Sheet date. Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted for in the Profit and Loss Account.

i. Employee Benefits:

i Short Term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account for the year in which the related service is rendered.

ii In respect of Post employment benefits viz. Gratuity, the Company has a master policy with LIC under Group Gratuity Scheme for its employees. The company provides / contributes to LIC Group Gratuity Scheme for future payments of retirement gratuity to the employees as determined by Management.

iii Other Long term benefits viz. Leave Encashment are recognized as an expense in the Profit and Loss Account for the year in which the employee has rendered service. The expense is recongised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses are charged to the Profit and Loss Account.

iv Company's contribution paid / payable to defined contribution schemes such as Provident Fund, Superannuation are charged to Profit and Loss Account.

j. Taxation:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent there is reasonable certainty / virtual certainty as the case may be. that the asset will be realized against future taxable profits.

k. Impairment of Assets:

At each Balance sheet date, the management reviews the carrying amount of its assets and goodwill included in each Cash generating Unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount of an asset is the higher of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value and the risks specific to the asset. Reversal of impairment loss is recognized immediately as income in the profit and loss account.

l. Operating Lease Granted:

Lease arrangements where the risk and rewards incident to the ownership of an asset substantially vest with the lessor, are recognized as operating lease. Lease rentals under operating lease are recognized in profit and loss account on a straight-line basis.

m. Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes to Accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

n. Earning per Share:

The Basic & Diluted Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

o. Cane Price:

Purchase of sugarcane for the season is accounted for on an estimated basis as per the Sugarcane price policy announced by the Company. The difference in price is adjusted in the books of accounts in the year the final price is determined by the Company, as and when it crystallizes, and in certain cases at a fixed price as agreed upon.

Mar 31, 2014

A) Basis of Accounting:

The financial statements are prepared in accordance with generally accepted accounting principles in India. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standard) Rules 2006 issued under subsection 3C of Section 211 of The Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous period.

b) Use of Estimates:

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

c) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred up to the date of commissioning.

d) Depreciation:

i. Depreciation on assets as on 31st March 1993 is charged in the accounts on the Written Down Value Method in accordance with Schedule XIV of the Companies Act, 1956.

ii. Depreciation on additions to Fixed Assets from 1st April 1993 is charged in the Accounts on the Straight Line Method in accordance with the Schedule XIV of the Companies Act, 1956.

iii. Depreciation in respect of each individual item of asset costing up to Rs. 5000/- is provided @ 100% in the year of purchase.

iv. Software is amortised over 3 years from the date of implementation.

e) Investments:

Long Term Investments are valued at costs. Provision for diminution in value of investments is made if, in the opinion of the management, the diminution is of a permanent nature. Current Investments are valued at lower of cost or fair value.

f) Inventories:

i. Stores, spares, packing materials, loose tools and raw materials are valued at cost or net realisable value whichever is lower, by applying the First In First Out (FIFO) Method.

ii. Finished goods are valued at Cost or Net Realisable Value whichever is lower.

iii. Work in progress / process is valued at lower of cost or net realisable value.

iv. Estimated quantities of saleable by-products i.e. Molasses, Bagasse and Treated Dry Press mud are valued at estimated Net Realisable Value.

g) Revenue Recognition:

i. The company recognizes revenue from sale of products upon dispatch/delivery of the goods coupled with transfer of title to the customers.

ii. Revenue from service is recognized on rendering of services to customers.

iii. Interest Income is recognized on time proportion basis.

iv. Dividend Income is recognized, at the time when they are declared.

h) Foreign Currency Transactions:

i. Foreign currency transactions are accounted at the rates prevailing on the date of transaction.

ii. Monetary Assets and Liabilities denominated in foreign currencies are translated at the exchange rate prevailing on the Balance Sheet date. Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted for in the Profit and Loss Account.

i) Employee Benefits:

i. Short Term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account for the period in which the related service is rendered.

ii. In respect of Post employment benefits viz. Gratuity, the Company has a master policy with LIC under Group Gratuity Scheme for its employees. The company provides / contributes to LIC Group Gratuity Scheme for future payments of retirement gratuity to the employees as determined by Management.

iii. Other Long term benefits viz. Leave Encashment are recognized as an expense in the Profit and Loss Account for the period in which the employee has rendered service. The expense is recongised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses are charged to the Profit and Loss Account.

iv. Company''s contribution paid / payable to defined contribution schemes such as Provident Fund, Superannuation are charged to Profit and Loss Account.

j) Taxation:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent there is reasonable certainty / virtual certainty as the case may be, that the asset will be realized against future taxable profits.

k) Impairment of Assets:

At each Balance sheet date, the management reviews the carrying amount of its assets and goodwill included in each Cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount of an asset is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value and the risks specific to the asset. Reversal of impairment loss is recognized immediately as income in the profit and loss account.

l) Operating Lease Granted:

Lease arrangements where the risk and rewards incident to the ownership of an asset substantially vest with the lessor, are recognized as operating lease. Lease rentals under operating lease are recognized in profit and loss account on a straight-line basis.

m) Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes to Accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

n) Earning per Share:

The Basic & Diluted Earnings Per Share (EPS) is computed by dividing the net profit after tax for the period by weighted average number of equity shares outstanding during the period.

o) Cane Price :

Purchases of sugarcane for the season are accounted for on an estimated basis as per the Sugarcane price policy announced by the Company. The difference in price is adjusted in the books of accounts in the year the final price is determined by the Company, as and when it crystallizes, and in certain cases at a fixed price as agreed upon.

Sep 30, 2012

A) Basis of Accounting:

The financial statements are prepared in accordance with generally accepted accounting principles in India. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standard) Rules 2006 issued under subsection 3C of Section 211 of The Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

During the financial period ended September, 2012 the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the company, for preparation and presentation of its financial statements. The company has also re-classified the previous year figures in accordance with the requirements applicable in the current period.

b) Use of Estimates:

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

c) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred up to the date of commissioning.

d) Depreciation:

i. Depreciation on assets as on 31st March 1993 is charged in the accounts on the Written Down Value Method in accordance with Schedule XIV of the Companies Act, 1956.

ii. Depreciation on additions to Fixed Assets from 1st April 1993 is charged in the Accounts on the Straight Line Method in accordance with the Schedule XIV of the Companies Act, 1956.

iii.Depreciation in respect of each individual item of asset costing up to Rs. 5000/- is provided @ 100% in the year of purchase.

e) Investments:

Long Term Investments are valued at costs. Provision for diminution in value of investments is made if, in the opinion of the management, the diminution is of a permanent nature. Current Investments are valued at lower of cost or fair value.

f) Inventories:

i. Stores, spares, packing materials, loose tools and raw materials are valued at cost or net realisable value whichever is lower, by applying the First In First Out (FIFO) Method.

ii. Finished goods are valued at Cost or Net Realisable Value whichever is lower.

iii. Work in progress / process is valued at lower of cost or net realisable value.

iv.Estimated quantities of saleable by-products i.e. Molasses, Bagasse and Treated Dry Press mud are valued at estimated Net Realisable Value.

g) Revenue Recognition:

i. The company recognizes revenue from sale of products upon dispatch/delivery of the goods coupled with transfer of title to the customers.

ii. Revenue from service is recognized on rendering of services to customers.

iii. Interest Income is recognized on time proportion basis.

iv. Dividend Income is recognized, at the time when they are declared.

h) Foreign Currency Transaction:

i. Foreign currency transactions are accounted at the rates prevailing on the date of transaction.

ii. Monetary Assets and Liabilities denominated in foreign currencies are translated at the exchange rate prevailing on the Balance Sheet date. Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted for in the Profit and Loss Account.

i) Employee Benefits:

i. Short Term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account for the period in which the related service is rendered.

ii. In respect of Post employment benefits viz. Gratuity, the Company has a master policy with LIC under Group Gratuity Scheme for its employees. The company provides / contributes to LIC Group Gratuity Scheme for future payments of retirement gratuity to the employees as determined by Management.

iii.Other Long term benefits viz. Leave Encashment are recognized as an expense in the Profit and Loss Account for the period in which the employee has rendered service. The expense is recongised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses are charged to the Profit and Loss Account.

iv. Company's contribution paid / payable to defined contribution schemes such as Provident Fund, Superannuation are charged to Profit and Loss Account.

j) Taxation:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent there is reasonable certainty / virtual certainty as the case may be, that the asset will be realized against future taxable profits.

k) Impairment of Assets:

At each Balance sheet date, the management reviews the carrying amount of its assets and goodwill included in each Cash generating Unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount of an asset is the higher of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value and the risks specific to the asset. Reversal of impairment loss is recognized immediately as income in the profit and loss account.

1) Operating Lease Granted:

Lease arrangements where the risk and rewards incident to the ownership of an asset substantially vest with the lessor, are recognized as operating lease. Lease rentals under operating lease are recognized in profit and loss account on a straight-line basis.

m) Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes to Accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

n) Earning per Share:

The Basic & Diluted Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the period by weighted average number of equity shares outstanding during the period.

o) Cane Price:

Purchases of sugarcane for the season are accounted for on an estimated basis as per the. Sugarcane price policy announced by the Company. The difference in price, if adjusted in the books of account in the year the final price is determined by the Company, as and when it crystallize and in certain cases at a fixed price as agreed upon.

Mar 31, 2011

1 Basis of accounting :

The Financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956

2 Use of estimates :

The preparation of financial statements, in conformity with generally accepted accounting principles (GAAP) in India, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements.

3 Revenue Recognition:

a) The Company recognises revenue from sale of products upon dispatch/delivery of the goods coupled with transfer of title to the customers.

b) Revenue from service is recognised on rendering of services to customers

c) Dividend Income is recognised when the right to receive payment is established.

d) Interest Income is recognised on the time proportion basis.

4 Excise Duty:

a) Liability on manufactured goods lying in the factory premises is not provided for and also not included in the valuation of stock-in trade.

b) Cenvat received on capital goods and input material is reduced from the cost of respective capital goods and input materials.

5 Employee Benefits:

a) Short-term employee benefits are recognised as an expense at the undiscounted amount in the Profit and Loss Account for the year in which the related service is rendered

b) In respect of Post employment benefits viz Gratuity, the Company has a master policy with LIC under Group Gratuity Scheme for. its employees. The Company provides / contributes to LIC-Group Gratuity Scheme for future payments of retirement gratuity to the employees as determined by Management

c) Other Long-term benefits viz. Leave Encashment are recognised as an expense in the Profit and Loss Account for the year in which the employee has rendered service. The expense is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses are charged to the Profit and Loss account.

d) Company's contribution paid / payable to defined contribution schemes such as Provident Fund, Superannuation are charged to Profit and Loss account.

6 Fixed Assets:

Fixed assets are carried at cost of acquisition or construction, less accumulated depreciation. The cost of fixed assets includes taxes (other than those subsequently recoverable from tax authorities), duties freight and other incidental expenses related to the acquisition and installation of respective assets. Interest on borrowed funds directly attributable to the qualifying assets up to the period such assets are put to use, is included in the cost.

7 Depreciation:

a) Depreciation on assets as on 31st March, 1993 is charged in the accounts on the Written Down Value Method in accordance with Schedule XIV of the Companies Act, 1956.

b) Depreciation on additions to Fixed Assets from 1st April, 1993 is charged in the Accounts on the Straight Line Method in accordance with the Schedule XIV of the Companies Act, 1956.

c) Depreciation in respect of each individual item of asset costing up to Rs.5000/- is provided @100% in the year of purchase.

8 impairment of Assets :

At each balance sheet date the management reviews the carrying amount of its assets and goodwill included in each cash generating unit to determine whether there is any indication that those assets where impaired. If any such indication exits the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount of an asset is the higher of an assets net selling price and value in use. in assessing value in use, the esimated future cash flows from the continuing use of asset and from its disposal are discounted to their present value using pre-tax discount rate that reflects the current market assessments of time value and the risk specific to the asset. Reversal of impairment loss is recognized immediately as income in the profit & loss account.

9 Valuation of Investment:

Long Term Investments are valued at cost.Provision for diminution in the value of investments is made if, in the opinion of the mangement the diminiution is of a permanent nature. Current Investments are valued at lower of cost or fair value.

10 Inventory Valuation :

a) Stores, spares, packing materials, loose tools and raw materials are valued at cost or net realisable value whichever is lower, by applying the First In First Out (FIFO) Method.

b) Finished goods are valued at Cost or Net Realisable Value whichever is lower.

c) Work-in-progress/process is valued at lower of cost or net realisable value.

d) Estimated quantities of saleable by-products i.e. Molasses, Bagasse and Treated Dry Press mud are valued at estimated Net Realisable value.

11 Lease Accounting

Lease rentals on assets taken on operating lease are recogined as expense in the Profit and Loss Account on an accrual basis over the lease term.

12 Transactions in foreign Exchange :

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange difference arising on foreign exchange transactions settled during the year are recognised in the Profit and Loss Account of the year.

Monetary assets and liabilities denominated in foreign currencies, which are outstanding as at the year end are translated at the closing exchange rate and the resultant exchange differences are recognised in the Profit and Loss Account.

13 Provision for Taxation :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from 'liming difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent there is reasonable certainty / if the Company has unabsorbed depreciation or carry forward tax, losses, deferred tax assets are recognised only if there is a virtual certainty supported by convincing evidence that such deferred tax assets can be realised against future taxable profit.

14 Provisions & Contingencies :

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the Notes to Accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

15 Earnings per share :

The Basic & Diluted Earnings Per Share (" EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

16 Cane Price:

Purchases of Sugarcane for the season are accounted for on an estimated basis as per the Sugarcane price policy announced by the Company. The difference in price, if any, is adjusted in the books of account in the year the final price is determined by the Company, as and when it crystallise and in certain cases at a fixed price as agreed upon.

Mar 31, 2010

1 Basis of accounting :

The Financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956

2 Use of estimates :

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements.

3 Revenue Recognition :

a) The Company recognises revenue from sale of Products upon dispatch/delivery of the goods coupled with transfer of title to the customers.

b) Revenue from service is recognised on redering of services to customers

c) Dividend Income is recognised when the right to receive payment is established.

d) Interest Income is recognised on the time proportion basis.

4 Excise Duty:

a) Liability on manufactured goods lying in the factory premises is not provided for and also not included in the valuation of stock-in trade.

b) Cenvat received on capital goods and input material is reduced from the cost of respective Capital goods and input materials.

5 Employee Benefits:

a) Short-term employee benefits are recognised as an expense at the undiscounted amount in the Profit and Loss Account for the year in which the related service is rendered

b) In respect of Post employment benefits viz Gratuity, the Company has a master policy with LIC under Group Gratuity Scheme for its employees. The Company provides / contributes to LIC- Group Gratuity Scheme for future payments of retirement gratuity to the employees as determined by Management

c) Other Long-term benefits viz. Leave Encashment are recognised as an expense in the Profit and Loss Account for the year in which the employee has rendered service. The expense is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses are charged to the Profit and Loss account.

d) Companys contribution paid / payable to defined contribution schemes such as Provident Fund, Superannuation are charged to Profit and Loss account.

6 Fixed Assets:

Fixed assets are carried at cost of acquisition or construction, less accumulated depreciation. The cost of fixed assets includes taxes (other than those subsequently recoverable from tax authorities), duties freight and other incidental expenses related to the acquisition and installation of respective assets.

Interest on borrowed funds directly attributable to the qualifying assets up to the period such assets are put to use, is included in the cost.

7 Depreciation:

a) Depreciation on assets as on 31 st March, 1993 is charged in the accounts on the Written Down Value Method in accordance with Schedule VI of the Companies Act, 1956.

b) Depreciation on additions to Fixed Assets from 1 st April, 1993 is charged in the Accounts on the Straight Line Method in accordance with the Schedule VI of the Companies Act, 1956.

c) Depreciation in respect of each individual item of asset costing up to Rs.5000/- is provided @ 100% in the year of purchase.

8 Impairment of Assets :

At each balance sheet date the management reviews the carrying amount of its assets and goodwill included in each cash generating unit to determine whether there is any indication that those assets where impaired. If any such indication exists the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount of an asset is higher of an assets net selling price and value in use. In assessing value in use, the estimated future cash flows froms from the continuing use of assets and from its disposal are discounted to their present value using pre-tax discount rate that reflects the current market assessments of time value and the risk specific to the asset. Reversal of impairment loss is recognized immediately as income in the profit & loss account.

9 Investment:

Long Term Investments are valued at cost. Provision for diminution in the value of investmens is made if, in the opinion of the management the diminiution is of a permanent nature.

Current Investments are valued at lower of cost or fair value.

10 Inventory Valuation:

a) Stores, spares, packing materials, loose tools and raw materials are valued at cost or net realisable value whichever is lower, by applying the First In First Out (FIFO) Method.

b) Finished goods are valued at Cost or Net Realisable Value whichever is lower.

c) Work-in-progress/process is valued at lower of cost or net realisable value.

d) Estimated quantities of saleable by-products i.e. Molasses, Bagasse and Treated Dry Press mud are valued at estimated Net Realisable value.

11 Lease Accounting

Lease rentals on assets taken on operating lease are recogined as expense in the Profit and Loss Account on an accrual basis over the lease term.

12 Transactions in Foreigh Exchange :

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange difference arising on foregin exchange transactions settled during the year are recognised in the Profit and Loss Account of the year.

Monetary assets and liabilities denominated in foreign currencies, which are outstanding as at the year end are translated at the closing exchange rate and the resultant exchange differences are recognised in the Profit and Loss Account.

13 Taxation:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date.The deferred tax asset is recognized and carried forward only to the extent there is reasonable certainty / if the Company has unabsorbed depreciation or carry forward tax, losses, deferred tax assets are recognized only if there is a virtual certainty supported by convincing evidence that such deffered tax assets can be realized against future taxable profit.

14 Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes to Accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

15 Earnings per share:

The Basic & Diluted Earnings Per Share (" EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

16 Cane Price:

Purchases of Sugarcane for the season are accounted for on an estimated basis as per the Sugarcane price policy announced by the Company.

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